Trader Loses $5.7 Million To Slippage in Memecoin Trade - Slashdot

Trader Loses $5.7 Million To Slippage in Memecoin Trade

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  Stupid person loses money!

  This is a developing story. Check back here for updates.

  • The real story would be behind how someone so stupid got entrusted with $6 million dollars in the first place

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      My guess is somebody's daddy.

      • 1 hidden comment

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    Cryptocurrency is unstable. Film at 11.

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    At this point I don't concider "Crypto Currancy" to have the same vallue as "Hell Bank Notes" https://en.wikipedia.org/wiki/... [wikipedia.org]. A bunch of nerds saying "This has value trust us bro" does not instill confadance Whaile U.S. Currancy is basicly the Government saying the same thing. There saying it, is atleast backed up with aircraft carriers and nukes.

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    Little known fact: shortly after cracking the code on hieroglyphics, Egyptologists were eager to see what sorts of secrets were buried in the tombs of the kings, but try as they might, the message you provided above accounted for nearly all hieroglyphs (the handful of remaining messages translated to “drink your ovaltine”). Experts have been checking back regularly for updates ever since, and have sought additional funding to keep doing so.

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    Of course all money has this problem to some degree. We saw this coming out of Covid, big-time - if too many people try to spend their $USD at once, they lose value. The value of a dollar equals the number of dollars that people are willing to spend divided by the total value of the goods and services available.

    I'm not pointing that out as a crypto-apologist - more in response to the stories over the weekend that the average net worth of 50-somethings in the US has now surpassed $1M. [usatoday.com]

    So for all of us t

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      Average net worth doesn't mean much.

      Median net worth means far more, and it is much lower.

      The average household net worth in Boca Chica, Texas is $10 billion.

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        Average net worth doesn't mean much.

        That has become the kneejerk response to every article stating a mean, and it's not true. The mean does matter. Your dollars are competing in a market of other peoples' dollars, whether that's a lot of people with a few dollars each, or a few people with many dollars each.

        Look at cars, as we've seen the automakers stop production of lower margin cars since there's a better profit making fewer more expensive ones, and this in turn propagates downwards and runs up the

• Most brokerages won't let you buy penny stocks without setting a limit price for this very reason. Hard to imagine someone so naive as to place a massive order like this without considering the impact of slippage.
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    Yeah, cryptocurrency purchases are entirely unregulated, and "brokerages" are amateurs. The whole point of the idea was to get rid of the "gatekeepers." Well... the gatekeepers are gond.

    I doubt that the buyer even heard of "slippage". Cryptocurrency trading is mostly done by amateurs who think they can get rich quick on stuff that the professionals stay clear of.

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      The stupid amateur had $9M to waste on this. There's no way a "trader" with $9M to spend on a single gambling coin doesn't know slippage. This can't be an amateur trying a quick get rich scheme, who just so happened to have $9M to start with. I think the more likely scenario is what CrappySnackPlane had below, a money launderer that needed to hide $9M fast.

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        most likely a fat finger error, or miscomputation which can be easy with weird 10^-7 based prices.

        for money laundering there are better options.

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        In the world of high-stakes trading that's peanuts.

        Guy was an amateur who thought he could play with the big boys.

  • Hard to imagine someone so naive

    I've got bad news for you, but you're going to want to sit down for this, in front of a mirror...

  • • Re: Limit price?

      Non-sequitur

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      Not so bad:P I mean, if they tax positive net worth, then they conversely need to give money to everyone with negative net worth (debt), no?

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        Oh if only.

• "Would-be money launderer loses $5.7 million worth of gift cards to slippage"

• Most swap contracts let you specify maximum slippage. Uniswap certainly does.

  Also that's what you get for trying to buy some idiotic memecoin that isn't even on a CEX.

• Random silly person no one has heard of loses money on random coin that no one has heard of. Seriously this is news that matters how?

  C'mon/. you can do better... we need CmdrTaco (I know the ship sailed ages ago...)

  • 1 hidden comment

  • Re:

    It's not losing money on the coin. It's the slippage.

    https://help.coinbase.com/en/c... [coinbase.com]

    Slippage is pretty easy to avoid on a CEX, such as Coinbase (linked above). Set a buy order at a fixed price and wait for people to fulfill that buy instead of attempting a market buy. Even if you DO execute a market buy, the CEX is usually nice enough to prevent frontrunners from seeing your trade request and shifting open sell orders around to screw you.

    When using a swap contract, frontrunners can and will wreck you.

• This guy was over greedy, and he overestimated the amount of money that he could make. So he went all in because he was an idiot. Then the market was not big enough so he lost most of it.

  Big fish tried to be the biggest fish in the pool and the pool was too small to let him breath. What an idiot.

  I would absolutely love to know how he got trusted with the money, because I could double that money, in a much safer way, with a clear audit trail while not violating regulations or doing risky junk.

• by CEC-P ( 10248912 ) on Monday January 15, 2024 @11:39AM (#64160093)

  That's not how any of this should have worked and the real article starts with "Some market watchers have termed the trade a possible “marketing stunt,” one that could have drawn attention to WIF as prices took a hit in recent weeks."
  You'd smash all buy walls and then the resulting price hike on manual trades from people getting alerts would crash the price but not nearly to that volume. The guy's either an idiot or this is a "long game" headline bait scam. I've been in crypto since 2010 and even I'm not sure which but this is another meme-based Solana chain shitcoin so nobody with a functioning brain would dump this kind of money into it without a reason. I'm definitely leaning towards scam.

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    or you can't accept the fact that blockchain is absolutely the worst distributed database solution devised by the mind of man and even makes bitcoin illiquid at times.

    but then they're all a shitcoin, a gambling token that nobody with a function brain would dump money into

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    A "marketing stunt"? Yeah nothing says marketing more than "Hey everyone, look how much of a joke we are, you can't even conduct a transaction without losing money!"

    Anyone who said there's no such thing as bad publicity needs to go get their money back from whomever lobotomised them.

• Film at 11.

  Or on Netflix, it wouldn't be the first hyped up crap nobody really gives a fuck about that they make a whole series out of.

• • Re:

    The single greatest indicator that you will be wealthy, the greatest common attribute of wealthy people, is that their parents were wealthy, not intelligent. Money makes money, money creates connections that help you make more money.

• The link given here on slashdot goes to a non-official-looking blog-style blurb, which links to some news outfit I've never heard of, which links to Twitter, which links to some other place that wanted me to log in and I got bored and stopped clicking. At this point I'm not convinced the alleged trade actually occurred. If it can be shown to have occurred on a less-than-multiple-click chase from the slashdot starting point, maybe that's on me; but otherwise, I'll say that I like to see better standards of presentation.

• What stupid fuck doesn't understand the difference between a market and a limit order, and what stupid fuck places a huge buy order in an illiquid market using the former?

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    CryptoBro

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    1). People using swap contracts and
    2). Lots of people who don't understand the risk of frontrunner bots.

• This could have happened on the stock market as well. If you pick a stock that doesn't have many trades, then trying to buy 9 million dollars worth of stock will make the price go up. If the stock has recently dropped say from $15 to $10, there will be lots of sell orders for $15 still in the system, that nobody bothered deleting. So once the available shares are gone, your 9 million dollar order will gobble all these large orders up. And when people notice, lots who were happily holding the stock will put

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    Which is why you place limits on orders. Also, for stock orders, there is normally have a window of time that they are active for.

    To help prevent this kind of thing...

• 6 million actual USD or 6 million “dollars of crypto” which in reality is worth exactly “who the f&*k knows but pennies on the dollar at most”. If the transaction actually happened at all. This is the internet, after all.
  • 1 hidden comment

• This is just an attempt to hype up the particular cryptocurrency.

  If you look up the link and follow it through you'll note that it's only the crypto-journals and social media repeating the same story.
  If you look it up on news search sites (groundnews, google news, etc.) you'll find no "real news" source even mentioning it.
  You will however find a lot of "trader turned $1xx K into $2-5M in a week buying (same crypto).

  Not really slashdot material any more than yesterday when I dropped a quarter down the drain.

• he'll lose to fraud.