Nightmare Christmas for trader who narrowly misses out on $1.8 million profit
Although Christmas came early for many DeFi traders thanks to the airdrop of the 1inch token, one trader ended up with a lot of coal
On Christmas Day, prolific DeFi users found a surprise under the tree thanks to a unicorn that looks a lot like Kurt Russell: decentralised exchange 1INCH launched Profit Revolution its governance token and utility token 1INCH, which reached a price high of $2.80 shortly after distribution.
Reminiscent of Uniswap’s token issuance this summer, an event that many likened to a “DeFi dole cheque,” the token was distributed via an “airdrop” to wallets that have used the platform to trade or provided liquidity in the past. The average user received around 1,600 tokens, and one lucky trader even cashed in over $20 million!
However, at least one trader came away from the festive giveaway empty-handed: Twitter user @timoharings, whose plan to get $1.8 million in tokens narrowly failed to meet the distribution parameters.
In a viral tweet, Harings recounted how he created 500 MetaMask wallets by making a single trade on each to qualify them for airdrop. However, none of them received tokens as they did not exceed the minimum threshold required for the amount of transactions:
“My ~500 MetaMask wallets, with which I made trades on 1inch in preparation after UNI’s airdrop, ultimately received no airdrop because each trade amounted to $17, $3 less than the threshold. I would have earned $1.8 million. As a consolation prize, I won today in Catan with my family.”
So my ~500 metamask wallets, that all did trades on 1inch in preparation after the Uni airdrop, didn’t receive any airdrop in the end cause it was $17 per trade, $3 below threshold. Would’ve totaled a 1.8 million dollar profit
But I won at Catan today with family, which is nice
– (@timoharings) December 26, 2020
He studied the wording of 1inch’s articles
Harings, a 23-year-old German who has been trading full-time since 2018, explained in an interview with Cointelegraph that the planning process was challenging. He studied the wording of 1inch’s articles in depth to come up with his strategy, eventually deciding to fund each of the 500 wallets with cryptocurrencies worth $30.
“Not being a programmer, I was looking for simple ways to automate the process but in the end I did it manually. When I started in October, I thought I was on borrowed time as the snapshot could happen overnight,” Harings recounted. “The fund distribution and transactions were literally done by hand on several computers as for some reason MetaMask could not handle more than 100 wallets.”
In the end, Harings spent $8,000 in gas on the trades, expecting a minimum return of $250,000: if his wallets had qualified, he would have received as much as $1.8 million. However, it was not a loss: one of his “main” trading wallets received over 1,800 tokens, which covered the costs of the “stratagem”.
Harings admits that letting nearly $2 million slip through his fingers “isn’t pleasant,” but he remains in good spirits:
“Part of me is proud of the idea, the effort put in and how I ‘solved’ the problem. If it had happened in 2016/17 it would have been much more emotionally devastating, but now in 2020, after all that’s happened, it’s tolerable.”
Moreover, the experience has provided him with hard-earned wisdom, as well as an optimistic view of his future earning potential.