- As per DEX Screener, ROSS is trading at about 1 cent and is up about 700% in the past 24 hours.
- Ulbricht operated the online black market Silk Road, which exploited Bitcoin for its payments till 2013 when he was captured and sentenced in 2015.
- Arkham revealed that the wallet addresses still hold 10% of the Ross token supply estimated at around $200,000.
Crypto wallets associated with Ross Ulbricht, the creator and operator of the darknet market Silk Road, lost around $12 million after making a memecoin trading mistake, as per Arkham Intelligence.
On January 30, Arkham posted on X mentioning that Ulbricht or a user managing his wallets inadvertently wrecked the price of a fan-made memecoin made after the release of Ulbricht from prison known as ROSS in an attempt to offer liquidity on the decentralized exchange (DEX) Raydium.
The wrong pricing mistake
Arkham further mentioned that he set the liquidity pool at the wrong price, $1.5 million of the token was quickly taken by an MEV Bot and then sold into the existing pool. The tokens were quickly made available for trading at comparatively lower prices, which the MEV bot purchased quickly and automatically executed trades.
The Ulbricht-associated wallet then made the same mistake one more time, this time losing another $10.5 million, an estimated 35% of the supply, according to Arkham. The platform also mentioned that Ross attempted to add single-sided liquidity to sell the coins off passively but by mistake made a pool with Raydium CPMM instead of CLMM.
Here, CPMM stands for Constant-Product Market Maker and CLMM stands for Concentrated Liquidity Market Maker. The MEV bot sold the tokens for more than $600,000. ROSS plunged 90% led by the bot snapping up the mispriced tokens and dumping them.
Loss of 40% of the supply
As per DEX Screener, ROSS is trading at about 1 cent and is up about 700% in the past 24 hours. Both the wallet addresses dropped by Arkham are registered for donation on FreeRoss.org, a campaign headed by Ulbricht’s family to release him from prison.
The Solana donation address of Ulbricht got 50% of the ROSS supply from the developer. Even after losing 40% of the supply, Arkham revealed that the wallet addresses still hold 10% of the Ross token supply estimated at around $200,000.
Ulbricht operated the online black market Silk Road, which exploited Bitcoin for its payments till 2013 when he was captured and sentenced to a double life sentence and over 40 years in 2015.
The 47th President of the United States, Donald Trump forgave Ulbricht on January 22, making good on one of his crypto-related campaign promises.
