TechFlow reports on January 30, according to Arkham monitoring, Ross Ulbricht—or someone with access to his wallet—incurred significant losses while providing liquidity on Raydium due to incorrectly setting the initial price of the liquidity pool.
Specifically, $1.5 million worth (5% of the token's total supply) was immediately arbitraged by MEV bots and dumped into the existing pool. Subsequently, a second transaction resulted in an additional loss of approximately $10.5 million (35% of the token's total supply).
Ross Ulbricht reportedly received 50% of the ROSS (Ross Ulbricht Fund) token supply from developers last week. Despite losing 40% of the token supply, Ross still holds 10% of the tokens in another address and has correctly added liquidity to a concentrated liquidity pool on Raydium.
