{"id":10733,"date":"2025-01-31T15:46:53","date_gmt":"2025-01-31T15:46:53","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=10733"},"modified":"2025-01-31T15:46:53","modified_gmt":"2025-01-31T15:46:53","slug":"ross-ulbricht-lost-12-million-to-an-mev-bot-on-solana-heres-what-happened","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=10733","title":{"rendered":"Ross Ulbricht Lost $12 Million To An MEV Bot On Solana: Here\u2019s What Happened"},"content":{"rendered":"
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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

Ross Ulbricht Loses Money: What Happened?<\/span><\/strong><\/h2>\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

\"Image\"<\/p>\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

\"Image\"<\/p>\n

(Source<\/a>)<\/p>\n

Blame Solana and MEV bots?<\/span><\/strong><\/h2>\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