CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$27,191.00
  • ethereum
    ETH$1,901.88
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    • Opinions
    CryptoPotato
    CryptoPotato
    • Crypto News
    • Margin Trading
    • Guides
      • Bitcoin & Crypto Guides 101
      • Bitcoin For Beginners
      • Editorials
    • DeFi & NFT
    • Buy
    • Language
    • Crypto News
    • Bitcoin For Beginners
    • Cryptocurrency Guides 101
    • Editorials
    • Bitcoin & Crypto Margin Trading
    • DeFi & NFT News
    • Bitcoin Price Analysis
    • CryptoPotato Crypto Fund
    • Ethereum (ETH) Price Analysis
    • Ripple (XRP) Price Analysis
    • Market Updates
    • Interviews
    • Buy Bitcoin with Card
    Home » Crypto News » How BZRX Uniswap Listing Made One Trader $550K In 30 Mins

    How BZRX Uniswap Listing Made One Trader $550K In 30 Mins

    Author: Mandy Williams

    Last Updated Jul 14, 2020 @ 10:55

    Yesterday BZX unlocked a certain portion of its public sale tokens. A trader used bots to quickly place buying and selling orders on Uniswap and made a profit upwards of $550,000 in 30 minutes.

    Following the announcement that BZRX token, the native cryptocurrency of DeFi project bZx, will be listed for trading on UniSwap decentralized exchange, reports suggest that a trader made more than half a million dollar within 30 minutes of trading the token.

    How It Happened

    On Monday evening, Security engineer Roman Storm took it to Twitter to explain how he spotted someone who made $1 million in a half-hour by trading the BZRX during an Initial DEX Offering (IDO) on UniSwap.

    An IDO is the latest concept for fundraising in the cryptocurrency industry. However, unlike ICOs, IEOs, and STOs, Initial DEX Offerings have no accountability to a central party since they are conducted on decentralized exchanges.

    According to Storm, who is also a crypto trader, the person waited for the BZRX announcement for UniSwap listing and then wrote a smart contract to purchase tokens on the DEX. The anonymous trader then spammed the Ethereum network to prevent other traders from buying the token.

    After the liquidity transaction was processed in block 10451767, he became the first person to purchase the BZRX token with the help of his bot. This allowed him to open a long position at a very low price. On-chain data suggests he made a buy order of 650 ETH ($155,154) to get 1,966,111 BZRX, at the rate of 3024 BZRX/ETH.

    ADVERTISEMENT

    Two minutes after his order was completed, he started selling the tokens in batches, ranging from 66,111 BZRX to 400,000 BZRX per batch. He sold 1,666,111 BZRX from his stash in 11 transactions, making between 52 and 741 ETH per trade.

    It Wasn’t a Hack

    The trader made a total of 2,780 ETH from the sales with a profit of 2,030 ETH ($509,431). He is left with a balance of 300,000 BZRX, which is currently worth around $48,290.

    While some, especially the less technically inclined investors, may argue that the trader might have hacked or exploited the system, what he did was to leverage a trading bot to buy low and sell high for profit. Using DeFi bots and spamming networks to prevent others from immediately buying tokens during IDOs has become a common occurrence.

    Storm said he was only trying to educate the community about the technical details of smart contract bots on Ethereum.

    “The BZRX IDO today was not 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,” he said.

    Founded in 2017, bZx is a decentralized protocol for tokenized margin trading and lending. Yesterday, the project unlocked a part of the tokens issued during its public sale. Earlier this year, the protocol was compromised following two attacks.

    SPECIAL OFFER (Sponsored)
    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.

    You Might Also Like:

    • filb2
      $14,000 By End of 2020 a Reasonable Target for Bitcoin's Price: Filb Filb in Exclusive Trader's Digest
    • Is Uniswap Governance Centralized? New Report Finds it Could be Controlled By Binance
    • Buying the Wrong Uniswap (UNI): UNICORN Token Skyrockets 500,000%
    Tags: Altcoins DeFi
    Enjoy reading? Share with your friends
    Facebook Twitter LinkedIn Telegram

    About The Author

    Mandy Williams
    More posts by this author

    Mandy Williams is a full-time reporter at CryptoPotato. She joined the cryptocurrency space in early 2017 during her search for financial freedom and has remained devoted to the industry.
    Contact Mandy: Twitter

  • bitcoin
    BTC$27,191.00
  • ethereum
    ETH$1,901.88
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    Editorials
    The Weaknesses of Ethereum VS Modern Blockchains: Interview With Radix

    The Weaknesses of Ethereum VS Modern Blockchains: Interview With Radix

    Institutions Intend to Buy Bitcoin in Late 2023: Interview With CryptoQuant

    Institutions Intend to Buy Bitcoin in Late 2023: Interview With CryptoQuant

    Why Didn’t ETH Dump After Shanghai? Interview With Nansen

    Why Didn’t ETH Dump After Shanghai? Interview With Nansen

    What is PEPE Coin? Is This the Next Huge Memecoin?

    What is PEPE Coin? Is This the Next Huge Memecoin?

    What is the Ethereum Shanghai (Shapella) Upgrade? Everything You Need to Know

    What is the Ethereum Shanghai (Shapella) Upgrade? Everything You Need to Know

    15 Months Later, What Changed Since November 2021? Interview With Phantom Wallet CEO

    15 Months Later, What Changed Since November 2021? Interview With Phantom Wallet CEO

    Artificial Intelligence & Crypto Guide: Here Are the Top 5 AI Coins

    Artificial Intelligence & Crypto Guide: Here Are the Top 5 AI Coins

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    Footer Logo
    About
    Advertise on CryptoPotato
    About Us | Contact Us | Careers
    Editorial Policy
    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!