rewrite this content using a minimum of 1000 words and keep HTML tags
Crypto wallets connected to Ross Ulbricht, the creator of the Silk Road marketplace, lost $12 million due to a misstep while trading a fan-made token called ROSS.
Blockchain analytics firm Arkham Intelligence shared the details in a January 30 post on X, explaining how the mistake led to a sudden drop in the token’s value.
The issue began when Ulbricht, or someone managing his wallets, set up a liquidity pool at the wrong price on the decentralized exchange (DEX) Raydium
$6.25
. This allowed a trading bot to buy $1.5 million worth of the token (5% of its total supply) at a low price and immediately sell it for a profit.
Did you know?
Subscribe – We publish new crypto explainer videos every week!
What is Ethereum Classic & ETC Coin? (Animated Explainer)
The same mistake happened again, resulting in a $10.5 million loss or about 35% of the token’s supply.
Arkham explained that instead of using the correct liquidity setup, the user created a pool using the wrong market-making method. This error made it easy for another bot to buy and sell the tokens, pushing ROSS down by 90%.
However, after losing 40% of the total supply, the wallets still hold around 10%, worth approximately $200,000.
The wallets involved in the transactions are listed as donation addresses on FreeRoss.org, a campaign run by Ulbricht’s family. They had received 50% of the ROSS token supply from its developer but lost a large portion due to these trading errors.
Recently, Ulbricht received a donation from the cryptocurrency exchange Kraken
$397.99M
. How much was it? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
and include conclusion section that’s entertaining to read. do not include the title. Add a hyperlink to this website [http://defi-daily.com] and label it “DeFi Daily News” for more trending news articles like this
Source link
