The post Ross Ulbricht Faces Significant Loss on Pump.fun Due to MEV Bot Exploitation of ROSS Token Liquidity appeared on BitcoinEthereumNews.com.

Ross Ulbricht’s recent experience on Pump.fun reveals the precarious nature of today’s meme coin ecosystem, leading to a substantial financial loss. Despite receiving substantial donations of ROSS tokens, Ulbricht encountered unexpected hurdles while attempting to capitalize on these assets. “This incident underscores a dramatic shift in the crypto landscape since the era of Silk Road,” an industry analyst from Coin Metrics noted. Ross Ulbricht lost $12 million attempting to liquidate ROSS tokens on Pump.fun, illustrating the volatile nature of crypto markets today. Ulbricht’s Rude Awakening on Pump.fun According to blockchain analysis firm Arkham Intelligence, Ross Ulbricht recently suffered a staggering $12 million loss while trying to liquidate his ROSS tokens on the Pump.fun platform. The founder of the infamous Silk Road became a significant figure in the crypto space due to his past influence on Bitcoin and the support he received after his release. Following his pardon by former President Donald Trump, Crypto advocates began donating ROSS tokens to assist Ulbricht in his reintegration into society. However, as he attempted to sell these assets on Pump.fun, he encountered unexpected technical issues that dramatically affected the outcome. An anonymous developer had created the ROSS meme coin and allocated half of the supply to Ulbricht, intending to help him financially. However, Ulbricht’s actions to liquidate this coin caused unintended consequences. “Initially, while trying to create a liquidity pool, he ended up mispricing the tokens, leading to a rapid devaluation,” Arkham’s report stated. Ulbricht set a liquidity pool with Raydium CPMM (Constant-Product Market Maker) instead of the focused CLMM (Concentrated Liquidity Market Maker), exacerbating the situation. This critical error resulted in an immediate exploitation by an MEV bot that plundered liquidity, causing ROSS tokens to plunge by as much as 90% within moments. This recent incident showcases the volatility and complexities inherent in…

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Filed under: News - @ January 30, 2025 10:25 pm