While various cryptocurrency traders and non-fungible token (NFT) enthusiasts have recently benefitted from the massive Pudgy Penguins airdrop, one crypto trader saw massive losses during a failed token swap associated with low liquidity.
The trader attempted to capitalize on the cryptocurrency’s airdrop and moved 45 wrapped Solana (WSOL) tokens worth around $10,300 on the Jupiter decentralized exchange in a bid to acquire the newly launched PENGU tokens.
Blockchain data shows that the trader’s order was made shortly after the PENGU tokens were airdropped, with the trader looking to place an order in a bid to take advantage of the initial sales from the airdrop.
The Jupiter decentralized exchange routed the trader’s order to an unofficial Raydium liquidity pool for PENGU. Liquidity on it was so low that the tokens were sold to the trader at a heavily inflated price that would lead the memecoin’s market capitalization to $14 trillion.
The tokens, however, were worth little over $5 on actual liquid markets.
As The Block reported, when Jupiter posted on social media the contract address for PENGU, it warned traders against the use of potential scam contracts. While the trade acquired legitimate tokens, the low liquidity of the pool saw them do so at an inflated price.
Nevertheless, the trader managed to acquire over 62,000 PENGU tokens later on in additional trades, despite their significant initial loss.
Despite this trader’s loss, the PENGU airdrop was fortunate for others. As reported, another crypto trader managed to make around $8.36 million in the airdrop by initially betting over $5 million on the cryptocurrency, before offloading their holdings for $13.7 million.
Featured image via Unsplash.
