A trader managed to sell one SPK token for $19,687, even though the market price of this asset at the time was only $0.05. This situation was made possible due to a critical error in the liquidity pool settings made by a user with the nickname teochew.eth.
This is reported by Бізнес • Медіа
What Happened to the SPK/USDT Liquidity Pool
Before trading began for the SPK token, user teochew.eth created a SPK/USDT liquidity pool and provided 19,998 USDT as one-sided liquidity. He intended to set a ratio where 1 USDT equals 19.93 SPK. However, due to an error, he mistakenly indicated the rate in reverse — 1 SPK costs 19.93 USDT. This made the exchange extremely profitable for the trader.
“The trader was able to exchange 1 SPK for $19,687 after trading for the token began, nearly completely depleting the liquidity pool. This was reported by analysts at Lookonchain.”
Consequences of the Error and Investor Losses
Thanks to this mistake, the trader instantly took advantage of the inflated rate and withdrew almost all the liquidity in USDT from the pool, receiving nearly $20,000 for a token that was worth only $0.05 on the market. When the pool owner teochew.eth realized what had happened, almost all the funds had already been lost. He managed to recover only $32.92 and 4.69 SPK, with total losses amounting to $19,965.
Such incidents highlight the importance of careful parameter settings in decentralized financial protocols, as even a minor mistake can lead to significant financial losses.
Previously, there was a report of an incident where an investor lost $6.5 million after purchasing a counterfeit cold wallet at a discount through the Chinese service Douyin.