• A savvy trader has managed to bag $1.5 million worth of Ethereum (ETH) by outsmarting a bot on the Blur non-fungible token (NFT) marketplace.
• The trader, Hanwe Chang, noticed someone using a bot to copy all of his trades and formulated a plan to take advantage.
• Gabriel Shapiro, general counsel at Web3 development firm Delphi Labs, said that the owner of the bot may have legal recourse if they hire a skilled litigator.
Trader Bags Nearly $1.5 Million in Ethereum
A savvy trader has managed to bag nearly $1.5 million worth of Ethereum (ETH) after successfully executing an ingenious plan to outsmart a trading bot on the Blur non-fungible token (NFT) marketplace.
How Hanwe Chang Tricked the Bot
Pseudonymous trader Hanwe Chang revealed that he noticed someone using a bot to copy all of his trades on Blur and then formulated an effective plan to take advantage. According to pseudonymous trader A-Raving-Ape.eth on X, Hanwe appears to have accumulated NFTs from popular artist Azuki before placing extremely inflated bids on them from another wallet – in an attempt to lure the bot into copying these bids. Once it did so blindly, Hanwe then sold all of his Azukis at needlessly high prices – some as much as 50 ETH each – to the unsuspecting bot instead of their usual top bids under five ETH per NFTs. Most of the profits were moved directly into an Ethereum address labeled as ‘Hanwe.eth’ according blockchain scanner Etherscan records.
Bot Owner May Have Legal Recourse
Gabriel Shapiro, general counsel at Web3 development firm Delphi Labs commented that the owner of the trading bot who is referred by their X handle @ThinkingETH may have legal recourse if they hire a skilled litigator for help with their case: “I unironically think @ThinkingETH might have good legal claims to get their ETH back from the bot ‘trick’ if they hire a skilled litigator… Legally, issues are more nuanced than normatively from cryptotwitter standpoint.”
Non-Fungible Token Marketplaces Growing Popularity
The news comes after non-fungible tokens surged in popularity in recent months following successful sales involving major artists such as Beeple and Banksy which saw millions in profits for sellers and buyers alike across various platforms like OpenSea or Rarible for example which are both popular decentralized marketplaces for these digital collectibles or unique crypto assets as some describe them due their uniqueness and scarcity among other factors driving up demand lately especially for tokens which are linked to well known figures or celebrities from sports or music industries just like NBA Top Shot packs recently .
To conclude this article , we can see how savvy traders can be able capitalize off certain opportunities presented by automated bots or algorithmic trading programs when executed correctly . In this case , Hanwe Chang was able not only identify this particular opportunity but also come up with an effective strategy which allowed him gain substantial profits worth almost 1 , 5 million US Dollars .