Good day everyone,
I hope you are all well and having excellent day, welcome to CryptoGod-1’s blog on all things crypto. In this post I will be looking at the recent smart move made by a NFT trader by the name of Hanwe Chang, who tricked a bot (which was copying his moves) into making him 800 ETH.
NFT Trade of the year?
The NFT trader was working away on Blur Marketplace as usual when he noticed an opportunity which he could not allow pass him by. Hanwe Chang made a cool 800 ETH, worth around $1.5 million, by tricking a bot. As simple as that. He did so by making the bot bid elevated prices for his NFT's, after realising that bot was copying all of his NFT bids on Blur.
“Noticed that someone's bot was copying my bids on Blur, so I decided to trick him... Made 800 ETH profit thanksss,” Chang wrote, while sharing a screenshot of 12 transactions of NFTs from the Azuki collection that were sold for 50 ETH each.
Once he realised the bot was bidding on the same NFT's he bid on, Hanwe Chang got to work. Below is a tweet where he shared a screenshot of Azuki NFTs which he managed to sell for 50 ETH (or more) each. Azuki is a NFT collection which made almost $40 million during its launch.
The screenshot sent the NFT community into furore, with many quickly trying to figure out how he had managed to make so much on his sales. The reason for this was that the floorprice for most Azuki's was hovering at around 5 ETH prior to his sales. All of the NFT's were stored in a single wallet by Chang, and knowing the bot was copying him, Hanwe placed bids on his own NFTs. Knowing that the bot would copy his bids and overbid slightly to win the NFTs, Hanwe managed to trick the bot into overbidding for his multiple NFTs. He then sat back and accepted the bids, knowing he had made much more than would have been possible in the normal market conditions.
The community was in shock and many agreed that the overall theory of Hanwe's trades was impressive, if true. However, he was quick to point out that what Hanwe did was in fact ‘Bid Spoofing’ or ‘Shill Bidding’ - a process in which bids are made at inflated prices to raise the overall price. This is an illegal activity and could potentially be considered as illegal market activity of Fraud or Wire Fraud.
If this is all true, then the main lessons to be learnt are:
1 - don't rely on bots, they could cost you a fortune.
2 - don't brag about it if you do manage to trick a bot like this.
Have a great day.
Peace. CryptoGod-1.
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