A mysterious entity on the Ethereum ($ETH) blockchain has captured the attention of the cryptocurrency community over the past few months as it began earning millions and consuming most of the network’s gas fees while running the maximum possible Extract Value (MEV) Robots.

According to a recent report by blockchain data analytics firm EigenPhi, the operator of the MEV robot jaredfromsubway has been exploiting traders on the ethereum blockchain since February 27, earning a staggering $40.6 million in revenue and $34.5 million profit.

Data from Dune Analytics shows that MEV bots have spent approximately 3,720 ETH or $950,000 in the past two months, executing approximately 180,000 transactions.

The MEV bot has been wreaking havoc on Ethereum traders and has been held responsible for losing millions of dollars to investors. This has alarmed traders, who are increasingly concerned about which coins to avoid.

Notably, MEV bots were created to leverage maximum extractable value, which is seen as the maximum amount of value that can be extracted from each block on the Ethereum network by influencing its content or order. For example, these bots could exploit decentralized exchange arbitrage opportunities, or perform sandwich attacks.

A sandwich attack sees a bot execute two trades around another user’s trade in order to manipulate the price of the asset the user is trying to trade and profit from the difference.

According to EigenPhi, Jaredfromsubway’s bot was found in more than 60% of Ethereum blocks in the week beginning April 17. The entity sometimes used simple arbitrage tactics, but focused primarily on buying and selling tokens in its sandwich attacks, the company said. analyse as below:

We looked at how this bot has gained a lot of attention lately and outperformed other sandwich and arbitrage bots. One of the key strategies is to use many altcoins. The bot’s account has far more tokens than the second-ranked sandwich bot.

According to the company, using more tokens gives a bot an advantage when looking for sandwich opportunities, as the more tokens a bot uses “the better the chance it will execute a sandwich transaction.” At its peak, the bot used over 800 types of tokens.

EigenPhi said the bot didn’t make any significant profits until April 17, when altcoin trading volumes surged. The bot not only performs these attacks, but also holds some cryptocurrencies to increase its profits.

As reported by CryptoGlobe, jaredfromsubway recently surprised the cryptocurrency community by returning approximately $1.5 million worth of wrapped bitcoin (WBTC) and wrapped ether (WETH) that an individual sent unintentionally.

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Mention Sources Can Request us to Edit This Article

1. www.cryptoglobe.com 

2. Quora


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