Original author: Frank, PANews
KOL @0x SunNFT revealed on Twitter that he made 150,000 U in one minute on the MEME token BAYC, which made countless people sigh. After careful research, people found that this might be another project of Huang Licheng (Machi Big Brother), a veteran crypto player.
Arbitrage opportunities caused by price differences
In short, the project that @0x SunNFT is involved in is an ERC-404 protocol that can convert Bored Ape Yacht Club (BAYC) NFTs into tokens. This project is called APE Fi. According to the official introduction of the project, 100 million BAYC tokens can be exchanged for one BAYC NFT. Conversely, holders can also exchange NFTs for 100 million BAYC tokens.
In fact, the current price of BAYC tokens is maintained at around $0.00030, which matches the floor price of BAYC NFT (9.471). In the long run, since the project is tied to the NFT value of BAYC, it lacks the volatility of MEME and cannot be treated as a MEME.
The reason why @0x SunNFT was able to quickly make a profit of 150,000 U is that there was a huge value difference when the BAYC token was first opened. The price once rose to 0.003 US dollars, with a ten-fold price difference. Therefore, @0x SunNFT chose to purchase BAYC NFTs from NFT trading platforms such as BLUR, and then quickly exchanged the NFTs for BAYC tokens and sold them for profit. In essence, it was a successful arbitrage.
Since the project was launched, Huang Licheng has repeatedly posted related content on Twitter to promote it to his fans. When others questioned in the comments whether this was another scam, Huang Licheng responded: "You are too stupid to see the innovation."
23 BAYCs were added in advance, but insufficient liquidity made it difficult to cash out after launch
But Machi Big Brother himself seems to have failed to seize this arbitrage opportunity. As of August 2, Machi Big Brother's Ethereum address still holds 62 BAYC NFTs, and he also increased his holdings of BAYC NFTs in July. As a long-time major holder of BAYC NFTs, Machi Big Brother began to frantically replenish his BAYC NFTs throughout July. According to statistics, from July 17 to July 31, Machi Big Brother's address purchased 23 BAYC NFTs.
This move may be optimistic about the market trend of BAYC after the launch of the protocol. However, judging from the current results, the floor price of BAYC is not much different from before. On the day the protocol was just launched, the floor price of BAYC NFT was once raised to 10 ETH, and the trading volume rose to 378.9 ETH, but these data soon returned to normal again. At present, the amount of funds in the BAYC token trading pool is about 640,000 US dollars, and the liquidity is about the size of 21 BAYC NFTs. From this point of view, the BAYC NFT in the hands of Machi Big Brother may have to continue to be held, and it seems difficult to realize it in a short time.
Harvested 38 million fans, harvested 20 million by the market
Previously, on March 28, Machi Big Brother raised more than 200,000 SOLs for his Solana Meme project Bobaoppa, worth about $38 million. After more than a month of waiting, the project was finally launched on May 4, with an opening price of $0.0009055 and a price of $0.0009057 on August 2. The price change in three months is comparable to that of stablecoins. According to the fundraising amount of $38.68 million, the user's cost should be $0.00154, and the current price is only 58% of the cost price. The funds in the liquidity pool are only $1.9 million, less than 5% of the fundraising at that time. On March 30, Machi Big Brother deposited the 156,000 SOLs raised into BlazeStake for pledge.
In the few months after the fundraising, Machi Big Brother transformed himself into an investment expert and participated in investments in well-known projects many times, including spending US$15.35 million to buy 8.048 million FRIENDs, becoming the largest individual holder of FRIEND. The current value is only US$1.177 million, with a loss of US$14.173 million and a loss rate of 92%.
On June 27, Machi Big Brother once again set his sights on BLAST and spent 1,491 ETH (approximately 4.65 million US dollars) to purchase 198 million BLAST, once again becoming the largest individual holder of BLAST. The entry price was approximately US$0.023. The current price of BLAST is approximately 0,0127, a drop of nearly half.
On July 12, Machi Big Brother deposited his 1,840 BLUR tokens on Binance and sold them, with an estimated loss of US$3.16 million, a loss rate of approximately 50.2%.
It can be seen that under the recent market downturn, Machi Big Brother, who was good at investment before, was not spared and lost about 20 million in just a few months. On August 1, Machi Big Brother sent a tweet: "I am an artist." Obviously, investment is an art that is more difficult to master.
