An anonymous investor bought more than 40,000 ETH on the decentralised exchange Uniswap. As a result of his actions, the cryptocurrency’s price on the platform surged by 13%, causing him to overpay by almost $2 million.
Welp, someone just bought $15mn worth of ETH via Uniswap. pic.twitter.com/FXcuSYYrjf
— eric.eth (@econoar) August 10, 2020
The total value of the trade across a series of swaps amounted to $17.9 million. Against this backdrop, the ETH price on Uniswap at one point reached $450. With Ethereum’s mid-market price around $400, the buyer paid $1.9 million more.
The deal drew interest from the cryptocurrency community. RealT chief operating officer David Hoffman suggested that the investor knowingly bought ETH at an inflated price because he wanted to open a long position without undergoing verification.
Either
— It was a single part of a greater DeFi arbitrage transaction
— Someone wants a no-KYC long-ETH position
— DavidHoffman.eth 🏴 (@TrustlessState) August 10, 2020
The most impressive part here is the slippage wasn’t actually that bad! Don’t get me wrong it was a lot but no DEX could have handled that slippage a year ago
— Adam Cochran (@AdamScochran) August 10, 2020
Among similar platforms, Uniswap ranks first with a daily volume of $252 million. The exchange accounts for 56.2% of turnover in the DEX sector, according to the portal Dune Analytics.
In early August Uniswap raised $11 million from 12 unnamed investors. A few days later the number of daily transactions on the exchange first exceeded 110,000.
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