BZRX is the original cryptocurrency for the bZx decentralized finance project, while Uniswap is an Ethereum-based decentralized cryptocurrency exchange.

Recently, it was announced that BZRX tokens were listed on Uniswap, enabling a trader to make more than half a million dollars ($550,000) within 30 minutes of starting BZRX trading on Uniswap.

Story details:

Last Monday evening, cryptocurrency security engineer Roman Storm explained via Twitter how he discovered a trader who made half a million dollars in half an hour by trading BZRX through a DEX Initial Offer (IDO) on UniSwap.

The IDO Offering is the latest fundraising concept in the cryptocurrency industry and is unlike the ICO, IEO and STO offerings, where the initial IDO offerings are not based on a centralized offering but instead rely on decentralized exchanges.

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According For “Roman Storm”, this person, the focus of our article, waited for the announcement of the inclusion of BZRX coin on UniSwap to immediately write a smart contract to buy tokens as soon as they are available on the UniSwap platform.

Then this anonymous trader made spam and unwanted transmissions to the Ethereum network to prevent other traders from buying the tokens so that they would not compete with him in the purchase.

After processing the liquidity transaction in block 10451767, this anonymous trader became the first person to buy BZRX tokens with the help of his bot (smart contract) he had set up earlier.

Which allowed him to open a long position at a very low price.

The data indicates that he placed a buy order of 650 ETH ($155,154) for 1966111 BZRX, at a rate of 3,024 BZRX per Ethereum.

Two minutes after completing his order, he began selling the tokens in batches, which he divided from 66111 to 400,000 BZRX per batch.

He sold 1666111 BZRX from his portfolio on 11 consecutive trades, making between 52 and 741 ETH per trade.

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The operation was not a hacking operation:

This unknown trader generated a total of 2,780 Ethereum from sales, with an estimated profit of 2,030 Ether, or about $509,431.

He has 300,000 BZRX left in his account, which is currently worth about $48,290.

While some, especially less technically savvy investors may argue that this trader may have hacked or exploited the system, what he did was take advantage of the trading bot to buy low and sell high for profit with some undesirable operation.

The use of bots and smart contracts in DeFi and setting up obstacles to prevent others from buying tokens immediately during their IDO has become common.

He told Storm that he was just trying to educate the community about the technical details of smart contract bots on Ethereum as he explained:

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Today’s BZRX coin IDO offering was not an exploit or hack.

Overall, IDO still had problems with foreground playback, and that’s all I’m trying to show.

My goal was to educate the community about the technical details of DeFi bots on Ethereum.

Founded in 2017, bZx is a decentralized protocol for margin trading, lending and borrowing.

Earlier this year, the bZx protocol was hacked in two consecutive attacks:

For the second time in days… the bZx protocol for decentralized finance was hacked and losses approached a million dollars

Read also:

Guide to the Lending and Loan System in the Crypto Market

Binance launches cryptocurrency lending with annual interest