A blockchain tracking platform says a trader has made more than 1300% profit on a Shiba Inu impersonator (SHIB).
According to Lookonchain, when Ethereum (ETH) founder Vitalik Buterin sold Shikoku (SHIK) this week, the transaction motivated an arbitrage opportunity.
“Because Vitalik Buterin sold SHIK yesterday, a SmartMoney made ~96 ETH ($150,000) with 14 ETH in SHIK, and an arbitrageur made 89.6 ETH ($140,000) with 6 ETH in SHIK.
How they did it?”
The blockchain tracking platform says the arbitrage moment was created when Butern’s sale of SHIK caused the meme token to plummet in price. Arbitrage trading is when an investor takes advantage of the difference in the price of an asset in different markets, pocketing the discrepancy.
“SHIK price plummeted by almost 80% after Vitalik Buterin sold 500 billion SHIK. SmartMoney and the arbitrageur noticed this sell off and immediately bought SHIK at very low prices and then sold.”
The trader took advantage of the plummeting SHIK price to turning six ETH at 89.6 ETH, a gain of 1393%, according to Lookonchain.
“The arbitrageur bought SHIK 38 billion with six ETH and sold SHIK 38 billion for 89.6 ETH.”
The other trader who seized the moment to convert 14 ETH to 96 ETH, an increase of 585%, did so through several proceedings.
“SmartMoney bought 34.2 billion SHIK with 14 ETH immediately after realizing it. So:
– Sold 12.2 billion SHIK for 38.36 ETH
– Sold 10 billion SHIK for 26.24 ETH via address “0xaBB6”
– Transferred 10 billion SHIK (~26 ETH)
He currently owns 2 billion $SHIK (~6 ETH).”
Shikoku is trading at $0.00000000955 at the time of writing.
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