- Sandwich bots are causing havoc on the Ethereum network, costing traders millions.
- Jaredfromsubway.eth spent over $2 million in the past week on Ethereum network fees.
- Sandwich bots are targeting newly issued tokens like Pepe and Chad.
As the cryptocurrency market experiences a surge in interest in meme-based tokens like Pepe and Chad, a new threat has emerged for traders – sandwich bots. These bots, which front-run transactions and manipulate them for profit, are causing havoc on the Ethereum network and costing traders millions of dollars.
An entity connected to a wallet named “jaredfromsubway.eth” has been identified as a major player in the market, and their tactics have many traders crying foul.
According to reports, “jaredfromsubway.eth” has been engaging in a practice known as “sandwiching.” This involves buying and selling a particular cryptocurrency in quick succession, essentially creating a sandwich with other traders caught in the middle.
Jaredfromsubway.eth, has spent over $2 million in the past week on Ethereum network fees trying to sandwich traders punting on low-cap tokens, becoming the top spender on the network, and driving up transaction fees by ten times the level of last week.
As per the statistics, Jaredfromsubway.eth has been the biggest spender on the Ethereum network during the previous 24 hours, responsible for 7% of all costs. This has led to the gas fees used in the Ethereum network spike, which has not benefited the Ethereum network or the users within the ETH network.
That’s more than the most popular decentralized exchange, Uniswap, and the layer-2 blockchain, Arbitrum, which batches transactions on the Ethereum network.
It’s not obvious how much money Jaredfromsubway.eth earned from their frontrunning efforts, but considering how much they spent (and are spending), the profits probably outweighed the losses.
Pepe and Chad: Easy Targets
Sandwich bots are snatching up newly issued tokens, like Pepe (PEPE) and Chad (CHAD). These currencies are meme coins with no intrinsic value that attracted the attention of Crypto Twitter degens overnight, triggering a 10,000% increase.
According to insider sources, sandwich attacks involve trapping a user’s transaction between two others, which the attacker can then manipulate to their advantage. This is done by purchasing the same asset as the victim and then selling it back to them at a slightly higher price. Essentially, the attacker is able to front-run the victim’s trade and reap the profits.
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