Victor Ugochukwu · Dec 14, 2020 . 5min read
BZRX Uniswap Listing; Trader Made $550K In 30 Mins
Security engineer Roman Storm explains how a trader made $550K on the BZRX Uniswap listing,affirms crypto community about the technical side of Ethereum smart bots.
By Shilika · Jul 16, 2020 . 6min read
Popular Ethereum based decentralized token swap platform, Uniswap has sparked a discussion on the social media platform Twitter. According to reports, some claim that an algorithm helped to hike the price of the bZx protocol’s BZRX token towards the north. Then they dumped it on retail users.
The discussion was taken to twitter by the Founder of cybersecurity firm PepperSec, Roman Storm. The latter shared a tweet claiming “how someone made a million dollar in 30 [minutes].”He listed three ways that shows exactly what happened as the BZRX token got listed on Etherum based Uniswap. He also added that the whole profit is “2030 eth + 300k BZRX,” which is USD 533,000.
According to reports, BZX unlocked some portion of its sale tokens. The trader used bots to place orders on ethereum based Uniswap, the report suggests.
Security engineer Roman Storm took it to Twitter .He further explained how he found some trader who made $550 k in a matter of 30 minutes on Monday evening. According to him, the trader made this profit by trading the BZRX during an Initial DEX Offering (IDO) on UniSwap.
Initial DEX offering is the new concept for raising fund in the cryptocurrency space. However, IDO offerings don’t have any security and accountability to a central party. IDO is conducted on decentralized exchanges unlike Initial Coin Offerings, IEOs, and STOs.
Crypto trader and security engineer Storm claims that the trader waited for the announcement of BZRX for UniSwap listing. To purchase tokens on the DEX, he wrote a smart contract to buy tokens. The trader then spammed the Ethereum network to stop other traders from trading the token on the network.
The report suggests that he was the first person to purchase the BZRX token after the transaction was initiated. He utilized his bot that permitted to hold a long position at a very low price.
Within 2 minutes after he ordered, he sold the tokens as batches. He performed 11 transactions and sold 1,666,111 BZRX. He made 52 and 741 ETH per trade.
Was it a hack?
On his Twitter handle, Storm affirmed that he was trying to let the crypto community understand and learn about the technical side of smart contract bots on Ethereum . He believes that the incident is not a manipulation of the system or a hack.
Storm states, “The BZRX IDO today was neither an exploit nor a hack. Uniswap IDOs generically still have problems with front running, and that’s all I’m trying to show. My intent was to teach the community about technical details of DeFi bots on Ethereum.”
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