Bot Failure Leads to 440.000 Loss for Memecoin Traders; Here's What Happened
Cryptocurrency traders who relied on a bot to gain an advantage in purchasing a newly launched memecoin suffered a $440,000 loss after the bot malfunctioned and sent investors' funds to the wrong address.
The incident was shared on Twitter by blockchain analysis company Arkham:
This MEV sniping bot malfunctioned about 5 hours ago, losing over $400,000 from users who sent funds to it,"
These traders expected the bot to act as a "sniper," targeting other users' transactions to place their orders ahead of competitors. In this practice, known as maximum extractable value (MEV), bots create the same order and use speed and funds to ensure their transaction is included first in the blockchain, leaving the original trader at a disadvantage.
