Trader Loses 90% of Funds in WIF Meme Token Deal

On January 10, a user known as zer0xtrading.sol spent 86,738.21 SOL (approximately $8.6 million) to purchase 15.92 million Dogwifhat (WIF) meme tokens, but lost the majority of the funds due to slippage. 

Yesterday someone swapped 86k SOL (8.6 million $) for a single swap to buy $WIF

But he did it in the most inefficient way possible

At the time of purchase, there was only 11k SOL on the Raydium AMM, 19k SOL on Orca and 60k SOL on Meteora

And this created an arb opportunity pic.twitter.com/dOGIHkj4G4

— Pland (@Pland__) January 11, 2024

The trader executed the transaction in a low-liquidity pool, resulting in the order being filled at approximately $3 per coin, while its market price was around $0.13 at the time.

The subsequent price “drop” led to the trader losing about 92% of the funds.

Meanwhile, an MEV bot operated by 2fast managed to profit from the transaction, earning approximately $1.73 million. Within a single transaction bundle, it exchanged 703 SOL for 490,000 WIF and then swapped them for 19,035 SOL. 

2Fast, the mev bot used JITO to bundle both the buyer transaction and his transaction and included a 890 SOL tip

The bot bought 490k WIF for 703 SOL from raydium concentrated liquidity
To sell it for 19 035 SOL on the same transaction pic.twitter.com/sAbSVwOEZx

— Pland (@Pland__) January 11, 2024

“This wasn’t a sandwich attack, just a simple reverse move. The buyer created the distortion, it wasn’t created by the bot. I still don’t understand the motive for this purchase. But if you can find such wealthy irrational buyers, that’s cool,” wrote a developer under the pseudonym Pland.

Over the past week, WIF has risen nearly 120% — from $0.11 to $0.24. According to CoinGecko, its market capitalization reached $240 million. 

Previously, a trader under the pseudonym Blockgraze turned $1,000 into $200,000 by trading WIF. He bought the coin at its launch in November 2023. 

On January 10, 2024, the price of the Solana-based meme coin Samoyedcoin (SAMO) surged 54% in a day amid an airdrop for Saga smartphone owners.