In a sophisticated maneuver in the volatile world of digital assets, a trader known by the pseudonym Hanwe Chang has reportedly managed to make over $1.5 million in the second-largest digital asset by market capitalization Ethereum ($ETH) by outmaneuvering a bot on a popular marketplace.
According to reports from various trader, backed by on-chain data, Hanwe Chang spotted a bot replicating his every trade on the non-fungible token (NFT) marketplace Blur, Observing this pattern, he crafted an intricate scheme to capitalize on the bot’s predictable behavior.
Per the trader, Hanwe acquired a series of NFTs created by the renowned digital artist Azuki and, using a different wallet, posed exceptionally high bids on each of these assets, seemingly with the intent to tempt the bot.
The bot, acting in its customary manner, mirrored Hanwe’s exorbitant bids, allowing Hanwe to divest all of hits Azuki NFTs onto the bot at significant premiums, to the point that while the NFTs were barely reaching 5 ETH each, Hanwe received 50 ETH for each.
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Bots have become increasingly popular on the Ethereum network this year,with a mysterious entity catching the attention of the cryptocurrency community over the last few months after it started making millions of dollars and consuming a large percentage of the network’s gas fees, while operating a Maximal Extractable Value (MEV) bot called jaredfromsubway.eth.
An MEV bot, it’s worth noting, is made to take advantage of Maximal Extractable Value, which is seen as the maximum amount of value that can be extracted from every block on the Ethereum network by influencing its content or order. These bots can, for example, take advantage of decentralized exchange arbitrage opportunities, or execute sandwich attacks.
As CryptoGlobe reported, jaredfromsubway surprised the cryptocurrency community by returning around $1.5 million worth of wrapped Bitcoin (WBTC) and wrapped Ethereum (WETH) that an individual unintentionally sent it.
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- Source: https://www.cryptoglobe.com/latest/2023/08/crypto-trader-makes-1-5-million-in-eth-by-outsmarting-a-bot-on-an-nft-marketplace/
