A blockchain-tracking platform says that one trader has netted more than 1,300% profit on a Shiba Inu (SHIB) imitator.
According to Lookonchain, when Ethereum (ETH) founder Vitalik Buterin sold Shikoku (SHIK) this week, the transaction triggered an arbitrage opportunity.
“Due to Vitalik Buterin selling SHIK yesterday, a SmartMoney made ~96ETH ($150,000) with 14 ETH on SHIK, and an arbitrageur made 89.6 ETH ($140,000) with six ETH on SHIK.
How did they do it?”
The blockchain-tracking platform says the arbitrage moment was created when Butern’s SHIK selling caused the meme token to plummet in price. Arbitrage trading is when an investor takes advantage of the difference in an asset’s price in varying markets, pocketing the discrepancy.
“The price of SHIK plummeted nearly 80% after Vitalik Buterin sold 500 trillion SHIK. The SmartMoney and arbitrageur noticed this sell-off and immediately bought SHIK at very low prices, then sell.”
The trader took advantage of the SHIK price plummet by turning six ETH into 89.6 ETH, a 1,393% gain, according to Lookonchain.
“The arbitrageur bought 38 trillion SHIK with six ETH and sold 38 trillion SHIK for 89.6 ETH.”
The other trader who seized the moment to turn 14 ETH into 96 ETH, a 585% increase, did so through several transactions.
“The SmartMoney bought 34.2 trillion SHIK with 14 ETH immediately after noticing it. Then:
– Sold 12.2 trillion SHIK for 38.36 ETH
– Sold 10 trillion SHIK for 26.24 ETH via address”0xaBB6″
– Transferred 10 trillion SHIK (~26 ETH)
Currently holds 2 trillion $SHIK (~6 ETH).”
Shikoku is trading for $0.00000000955 at time of writing.Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/marrishuanna/Fotomay