The Rise of Sandwich Attacks: How MEV Robots Are Profiting from Meme Coins

On April 20th, according to NFT data and research platform Sealaunch monitoring, a MEV robot named jaredfromsubway. eth has recently made over $1.4 million in profits from sandwich attacks on buyers and sellers of Meme coins such as WOJAK and PEPE.

A MEV robot made a profit of over $1.4 million by executing a sandwich attack in a Meme coin transaction

Cryptocurrencies have always been a vulnerable target for hacking and theft. While traditional cybercriminals rely on phishing and brute-force attacks, a new breed of bots has emerged, taking advantage of the latest technology and cryptocurrencies’ decentralization to execute “sandwich attacks.”
On April 20th, according to NFT data and research platform Sealaunch monitoring, a MEV robot named jaredfromsubway.eth has recently made over $1.4 million in profits from sandwich attacks on buyers and sellers of Meme coins such as WOJAK and PEPE.

What are Sandwich Attacks?

In a sandwich attack, the attacker executes a front-running tactic, intercepting a transaction between two parties and inserting their own transaction in between. The aim is to manipulate the price of the asset and profit from the difference.
Sandwich attacks are facilitated by the latest evolution of crypto trading, the Miner Extractable Value (MEV). MEV refers to the profit that miners can make by reordering or censoring transactions.
With MEV, miners have the power to determine the order and inclusion of transactions in a block. This makes them a lucrative target for attackers, who can pay a fee to prioritize their transaction and execute sandwich attacks.

Who is jaredfromsubway.eth?

Jaredfromsubway.eth is a MEV robot that executes sandwich attacks on Meme coins, particularly WOJAK and PEPE. Launched on April 6th, 2021, in less than two weeks, the bot has made a fortune by exploiting the price volatility and low liquidity of these coins.
According to the Sealaunch report, jaredfromsubway.eth has made over $1.4 million in profits, most of it coming from sandwich attacks. The bot has executed over 14,000 transactions, with an average profit of $98 per sandwich attack.

Why are Meme Coins Vulnerable?

Meme coins are a new trend in the cryptocurrency market that relies on social media and humor to attract investors. These coins have little to no utility or intrinsic value and are often used for speculation.
Meme coins are also characterized by low market capitalization and liquidity, which makes them prone to price manipulation and volatile swings. This makes them an easy target for sandwich attacks, as a small injection of funds can switch the market price and generate a profit for the attacker.

What Can be Done to Prevent Sandwich Attacks?

Sandwich attacks are not only illegal but also damaging to the crypto market’s integrity and stability. As MEV becomes more prevalent, the risk of sandwich attacks will increase. Therefore, it is crucial to implement measures to prevent and detect sandwich attacks.
One solution is to raise awareness among investors and traders about the risks associated with low market-cap and liquidity coins. Crypto exchanges and regulators should also monitor suspicious transactions and freeze accounts suspected of executing sandwich attacks.
Furthermore, research and development should focus on mitigating the impact of MEV on the blockchain. This includes designing algorithms that minimize the MEV potential and building robust systems that prevent transaction reordering.

Conclusion

MEV robots and sandwich attacks represent a new challenge for the cryptocurrency market. The rise of Meme coins and the low liquidity of these assets make them an easy target for attackers seeking quick profits.
To prevent sandwich attacks, crypto exchanges and regulators must collaborate to raise awareness, monitor suspicious transactions, and implement security measures. Moreover, research and development efforts should focus on building stronger and more resilient systems that mitigate the impact of MEV and sandwich attacks.

3 Unique FAQs

Q: What is Miner Extractable Value (MEV)?

A: Miner Extractable Value (MEV) refers to the profit that miners can make by reordering or censoring transactions. With MEV, miners have the power to determine the order and inclusion of transactions in a block, allowing them to extract additional value from the mining process.

Q: Are sandwich attacks illegal?

A: Yes, sandwich attacks are illegal and considered a form of market manipulation. They are damaging to the crypto market’s integrity and stability and can lead to significant financial losses for investors.

Q: Can sandwich attacks happen on any cryptocurrency?

A: Yes, sandwich attacks can happen on any cryptocurrency, but they are more prevalent in low market-cap and liquidity coins that are prone to price manipulation and volatile swings. Meme coins are particularly vulnerable to sandwich attacks due to their low liquidity and high speculation.