PENGU trader flipped $10k to $3 on Pudgy Penguins tokens
An unlucky trader lost $10,000 buying PENGU tokens from Pudgy Penguins shortly before the NFT-related airdrop.
Let the snow fall, or so one unlucky trader thought when he attempted to launch the Pudgy Penguins crypto airdrop on December 17th. While the Pudgy Penguins (COMMITMENTS) the token’s market cap surged by over $3 billion just hours after its debut, one investor purchased the token for a ridiculous $14 trillion capitalization.
Their initial investment of $10,000 turned into less than $3 within minutes, according to on-chain data and community observers.
From $10,000 to $3, trader PENGU sunk by an iceberg
Following on-chain data, an unknown trader appears to have put a large PENGU order on Jupiter shortly before the token went live.
These traders, often called “snipers,” use advanced trading tools to quickly scoop up newly launched tokens. However, a glitch in the Jupiter decentralized exchange has steered this potential sniper PENGU into a weak liquidity pool.
DEX aggregators like Jupiter calculate cryptocurrency prices using a system that autonomously adjusts price tags based on demand, called the bonding curve.
Tech-savvy bad actors sometimes manipulate this system to create highly volatile liquidity pools. Since anyone can establish a liquidity position, traders occasionally purchase tokens from incorrect contracts and suffer significant losses.
In this case, the trader likely purchased into one of these manipulated liquidity pools without verifying the contract address or the market cap of the token. After trading 45 wrapped Solana (GROUND), the buyer only received 78 tokens worth less than $5 at the time of reporting. Undaunted by this mistake, the trader ultimately acquired 62,585 PENGU coins worth approximately $2,000.
Chubby Penguins Roadmap
The token launch capped Pudgy Penguins’ recent recovery in a broad renaissance of non-fungible tokens. The NFT collection owned by Iglo Inc. was one of the top three NFT projects by market capitalization. A single NFT Pudgy costs more than a Bitcoin at any given time.
The Penguin-themed blockchain artwork traded at an average of $60,000 after the airdrop, with a 50% correction adjusting its floor price to 15.63 Ether (ETH).
Looking ahead, Igloo Inc.’s roadmap includes enabling PENGU features on the Ethereum blockchain. The company also plans to launch its layer 2 Abstract Chain network. Pudgy Penguins’ PENGU token has a total supply of 88.88 billion tokens, with seven million addresses eligible for airdrop.
Post Comment