This trading bot made $40 million dollars by tricking crypto traders; and nobody knows who made it!
Jaredfromsubway is an MEV bot, launched earlier this year; and within three months, it made $40 million dollars.
But how is that even possible?!
MEV or Maximal Extractable Value bots are automated mechanisms to find profitable trades; BUT not ethically.
It is exploiting a big weakness of Ethereum blockchain.
You see, in Ethereum, there is a few seconds delay to execute transactions. And Jredfromsubway is making millions in these few seconds.
Here’s how it works.
Suppose you place a BIG buy order on the Ethereum blockchain.
There’ll be a delay in execution, and in this little time, the bot sees your order.
It’s a big order, so obviously the price will go up when it’s executed.
Now comes the interesting part: The bot simply places an order at a bigger gas fee so that it gets executed before yours.
And when your order is executed and the price moves up, the bot sells it off and grabs the profit!
Neat, right?
New data says that the bot has spent over $70 m in gas fees alone. I am sure the profit data will be quite shocking.
And yeah, the bot is named after Jared - an Ex-Subway employee, who is in jail for a scandal.
Well, the bot is a scandal in the crypto world right now; so, well named!
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