ROSS ULBRICHT LOST $12M ON PUMPFUN…

Ross Ulbricht, or someone with access to his wallets, just accidentally nuked the price of a pumpfun coin sent to him while trying to provide liquidity on Raydium.

The wallets associated with the FreeRoss.org campaign site – a site established by the family of Ross Ulbricht – seem to have faced some serious losses recently. These wallets have been engaged in two costly errors during the trials to offer liquidity on the decentralized marketplace known as Raydium, where 50% of the total supply of the meme coin resides.

As per DEX Screener, the occurrence was sequentially with a boost in the token, it enhanced more than 735% in the only one day.

ROSS ULBRICHT LOST $12M ON PUMPFUN…

Ross Ulbricht, or someone with access to his wallets, just accidentally nuked the price of a pumpfun coin sent to him while trying to provide liquidity on Raydium.

Because he initialized the liquidity pool at the wrong price, $1.5M of the… pic.twitter.com/kN5BN2mN49

The wallets, holding half of the token supply, made a critical mistake on the 30th of January. In an attempt to profit from its tokens, they offered 5% of the pump.fun token for sale at a much lower price than the prevailing market price, thereby reducing the tokens’ value.

This opportunity was quickly noticed by an MEV bot, which bought tokens at the lower-than-expected price. The bot then sells the obtained tokens back into the pool with an aim of making a profit out of the same. Regarding the MEV bot, it purchased around $1.5 million assets for tokens at the time of the transaction.

MEV Bot Profits from Errors

Still, to counteract the loss, the FreeRoss.org wallets made the attempt to add single-sided liquidity. But, once again, they committed a mistake. This time, he sacked up with the wrong choice of the Raydium Constant-Product Market Maker rather than the Concentrated Liquidity Market Maker model. Therefore, approximately 35% of the total supply of tokens was sold out at a loss, and its price decreased immensely.

Again MEV bot was able to capitalize on the situation. The bot purchased the tokens at around $600 000 and subsequently led to the reduction in the value of the token to a 90% loss.

The wallets linked to FreeRoss.org still contains around 10% of tokens with an estimated worth of $200,000.

Nevertheless, the token has begun to show signs of recovery even though it was heavily affected by these setbacks. By the date of the latest data, it has been observed that within a 24-hour period of time, the token has ranked an upsurge of 735% with an astonishing trading volume of $14.8 million.