Ross Ulbricht lost $12 million to an MEV bot while trying to provide liquidity for the ROSS meme coin on Raydium, a DEX on Solana.<\/p>\n
Some traders are indeed \u201cminting\u201d money trading meme coins. Getting a piece of the $105 billion market cap industry seems to be the order of the day.<\/span><\/p>\n The bad news is that out of the millions, even billions, of ROI scooped, only a tiny percentage of meme coin traders win. Most lose, not only due to bad entries and rug pulls but sometimes to bots.<\/span><\/p>\n Arkham Intelligence <\/span>analysis<\/span><\/a> from January 30 reveals that Ross Ulbricht, or someone with access to his wallets on Solana, lost roughly $12 million in a failed attempt to supply liquidity for a meme coin named ROSS. The meme coin, ROSS, similar to Trump, was minted on Pump<\/span>.fun<\/span>, a launchpad on Solana.<\/span><\/p>\n According to the blockchain analytics platform, Ulbricht lost money due to a possible flaw in the liquidity pool on Raydium, a DEX on Solana.<\/span><\/p>\n Unfortunately for him, he mistakenly initialized the liquidity pool at the wrong price. This error was quickly picked up by a Maximal Extractable Value (MEV) bot, allowing it to instantly snipe $1.5 million worth of tokens, or 5% of the total supply, and sell them into the pool.<\/span><\/p>\n\n (Source<\/a>)<\/p>\n Ulbricht (or the account administrator) repeated the process even after this error. However, instead of $1.5 million, the MEV bot took another $10.5 million, or 35% of the total supply, and sold it into the pool.<\/span><\/p>\n After this batch of bot selling, the ROSS token plunged by over 90%.<\/span><\/p>\n\n (Source<\/a>)<\/p>\n With prices dropping, ROSS holders lost money.<\/span><\/p>\n Unless ROSS picks up momentum now that Ulbricht is a celebrity and known for making crypto mainstream back in the day, the token will likely flat-line or even fall further.<\/span><\/p>\n The question is: <\/span>Should you blame Ulbricht or Solana\u2019s marauding bots?<\/span><\/em><\/p>\n Ulbricht might have made a mistake, but the presence of MEV bots meant there was no time to fix the error.<\/span><\/p>\n Instead, MEV bots spotted this opportunity to arbitrage and make money at the expense of others.<\/span><\/p>\n\n And this is a common theme in Solana.<\/span><\/p>\n With meme coins booming and billions traded daily, MEV bots are busy (unfairly) sniping millions from all DEX traders.<\/span><\/p>\n These bots continuously scan the blockchain, exploiting inefficiencies and pricing mistakes in DEXes like Raydium<\/a>. Once they pick out an error, they execute ahead of users, extracting value from them.<\/span><\/p>\n For example, in 2024, a trader mistakenly bought WIF at $3 while the token traded for $0.20. An MEV bot spotted the error and instantly capitalized on this mistake.<\/span><\/p>\n Reports show<\/a> that Jito Labs, a flashbot operator, leads MEV operations in Solana. In 2024, they cumulatively generated nearly $500 million on Solana alone.<\/span><\/p>\n EXPLORE:\u00a0This Week In Crypto Asia: Thai Finance Minister Proposes Unified Licensing For Securities And Crypto Trading<\/a> Join The 99Bitcoins News Discord Here For The Latest Market Updates<\/a><\/strong><\/p>\n The post Ross Ulbricht Lost $12 Million To An MEV Bot On Solana: Here\u2019s What Happened<\/a> appeared first on 99Bitcoins<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Ross Ulbricht lost $12 million to an MEV bot while trying to provide liquidity for the ROSS meme coin on Raydium, a DEX on Solana. Some traders are indeed \u201cminting\u201d money trading meme coins. Getting a piece of the $105 billion market cap industry seems to be the order of the day. The bad news […]<\/p>\n","protected":false},"author":0,"featured_media":40699,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-40698","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/40698"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=40698"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/40698\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/40699"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=40698"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=40698"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=40698"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Ross Ulbricht Loses Money: What Happened?<\/span><\/strong><\/h2>\n
Blame Solana and MEV bots?<\/span><\/strong><\/h2>\n
\n<\/span><\/strong><\/p>\n