A The unlucky investor managed to pull off a feat when he tried to buy $10,000 worth of PENGUtrading on a decentralized exchange. According to the community, he used the Jupiter platform in his trading in the Solana ecosystem.
For example, he held 45.5 SOLs in his portfolio, which were valued at US$10,298.00 on the market when trading began. His intention was to gain access to the bag of PENGU, Pudgy Penguins, an airdrop cryptocurrency costing US$0.034 per unit.
In other words, he could have become a PENGU whale if he had managed to buy the more than 300,000 units of the memecoin he so desperately wanted. However, he simply did not count on the bad luck that came his way and that hindered his plans to bring another sardine to the market.
Unhappy investor buys $10,000 but receives only $5
In executing the ‘trade of the century’, the anonymous investor ultimately exchanged his 45.5 Solanas for just 78 PENGU. It is not entirely clear whether he abused the use of slipagge on the decentralized exchange, but the historical loss may have something to do with it.
When the matter was noticed, a Twitter profile even publicized the situation with the acronym LMFAO, showing that it enjoyed the misfortune of others.
someone bought $PENGU @$14T mc turns his $10k into $5 in seconds pic.twitter.com/R9X9tOu2fn
— bx1 (@bx1core) December 17, 2024
Better understand what could have ruined investors in just a few seconds
Trade cryptocurrencies on decentralized exchanges like Jupiter in the ecosystem Solanarequires attention to several details that can impact users’ experience and financial outcomes.
Decentralized Exchanges (or DEXsthe abbreviation in English) allow the exchange of assets directly between wallets, without intermediaries. This offers greater privacy and control over funds, but also comes with specific risks such as exposure to malicious smart contracts, limited liquidity and high volatility.
One of the fundamental aspects to consider when using platforms like Jupiter is the understand slipor slipping. This concept refers to the difference between the expected price of a negotiation and the actual price executed.
This is due to market volatility and limited liquidity in the trading pool. For example, if you are trying to trade a large amount of tokens in a small poolthe price may change drastically as the transaction is processed, resulting in higher or lower fees than initially expected.
Nasty protect yourselfit is essential to set a slip limit before confirming a trade. On platforms like Jupiter you can manually adjust this setting, specifying the maximum percentage of price changes you are willing to accept.
A low slippage limit gives you more control, but can result in transaction failures if the price varies more than allowed. On the other hand, a high limit increases the probability of order execution, but exposes the user to greater risks of paying unexpectedly high prices.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
