Let’s have a closer look at what really went down when a bot seemingly sold 2.4 Ape Coin (APE) for 946 ETH
As a bot, apparently sold 2.4 APE for 946 ETH, worth $2.7 million. All the focus seems to be pouring more on Ape Coin (APE).
The viral transaction of a bot selling 2.4 Ape Coin (APE) for almost $3 million explained
Ape Coin (APE) is the native cryptocurrency that underpins the Bored Ape Yacht Club ecosystem, and it was launched on March 17 and streamed to BAYC related NFT holders. After hitting some of the top exchanges, the coin already has billions of dollars in volume.
Unpacking the entire situation was the well-known crypto proponent and former Coinbase engineer going by the Twitter handle 0xbeans.eth. This is what the transaction in question looks like:
The expert speaks of the three relevant transactions for understanding what went on and how nobody sold 2.4 APE for almost $3 million. What happened was the so-called “sandwich attack.”
If we look at the bots txns, we see that the first txn was buying $APE for 4.1364868 ETH that got executed before dseezy’s.
dseezy’s txn got executed immediately after this and faced slippage. pic.twitter.com/dHM1EkzRab
— 0xBeans.eth (@0x_Beans) March 19, 2022
The transaction in question is that of someone trying to exchange 1.5 ETH for APE tokens. However, we can also see a bot that sent two other transactions before and after the original one and got clamped.
The first trade bought the APE for about 4.13 ETH, and then the initial trade went through, facing slippage. The transaction eventually sold the APE it bought for 4.45 ETH, profiting 0.3 ETH in a single block.
What is a sandwich attack?
When someone sends a transaction to Ethereum’s network – it doesn’t get executed and included in a block immediately. Instead, it gets to a mempool and waits for a miner to pick it up. The way miners choose which transactions to include is usually based on the gas fee – the higher it is, the more prioritized a transaction. Another thing to consider is slippage. When setting slippage on a DEX like Uniswap, you’re telling the protocol that you are willing to pay a higher price (to a certain extent) by the time your transaction gets executed.
For example, if you want to buy 10 APE tokens for 100 ETH and you set a slippage of 2%, you are saying that that you are willing to pay a maximum of 102 ETH for 10 APE tokens by the time your transaction gets executed (in case there’s an increase at all).
Read more:
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