An unknown Maximal Extractable Value (MEV) bot operator raised over a million dollars this week by launching a “sandwich attack” on buyers and sellers of two new meme coins.
According to an April 19 tweet from nonfungible token data platform (NFT) Sealaunch, the wallet address linked to the Ethereum Name Service (ENS) domain “jaredfromsubway.eth” profited $950,000 from a sandwich attack on April 18 and made a profit of around $300,000 and $400,000 on 17 and April 19, respectively.
Domain ENS bot is most likely the popular chain game sandwich and its famous former spokesperson Jared Fogle. MEV bots consumed 7% of all Ethereum gas fees in the 24 hours between April 18 and 19, according to a separate publication by Sealaunch.
According to crypto researcher Matt Willemsen, most of the profits came from attacks on trading activity connected to two new meme coins, Pepe (PEPE) and Wojak (WOJAK), which helped catapult jaredfromsubway.eth to become the world’s biggest gas guzzler. last day and week:
A sandwich attack occurs when an attacker “sandwiches” a victim’s transaction between two of them to manipulate the prices and profits of the users. This is possible because the victim’s transaction is initially transferred to the mempool, where it awaits inclusion in the next block. Meanwhile, the attacker makes two transactions, one with a high gas fee to guarantee it is accepted first and one with a lower gas fee to ensure it is accepted after the victim’s transaction.
The attacker profits by buying the victim’s tokens at a lower price than market value and then selling them in the same block, pocketing the difference between the transaction revenue and the gas fee. According to data provided by Thomas Mattimore, head of the Reserve Protocol platform, jaredfromsubway.eth’s huge revenue came from approximately $1.2 million spent on fuel costs between April 18 and 19.
According to Sealaunch, MEV bot operators have spent more than $7 million in fuel fees across 180,000 transactions. While some find the domain names and actions of MEV bots cute, not everyone.
An analyst at on-chain analytics startup Glassnode questioned the “value” of the efforts that jaredfromsubway.eth is making to the world. Other Twitter users went a step further, venting their anger and frustration on MEV bot operators.
MEV bots have extracted more than $1.38 billion from Ethereum users trying to trade, offer liquidity, and produce NFTs, according to MEV Blocker. Several MEV Block projects have been created recently to help Ethereum users protect themselves against sandwich attacks.