A mysterious entity on the Ethereum (ETH) blockchain has been observed pocketing tens of millions of dollars in profits with a slick technique known as sandwich attacks.
The Ethereum address, labeled as jaredfromsubway.eth, has made over $34.3 million in the last three months using a sandwich attack strategy, according to on-chain analysts.
Sandwich attacks are when an entity spots a large pending transaction on a blockchain, then front runs the transaction, usually by offering more in gas fees to get higher priority in the queue. The front running pushes the price up, forcing the victim to buy at a higher price than intended, and allows the culprit to sell at a higher price immediately afterward.
According to a report from blockchain data analysis firm EigenPhi, jaredfromsubway deployed the strategy on February 27th, and has since raked in $40.6 million in revenue with a staggering profit of $34.35 million.
EigenPhi found that jaredfromsubway’s bot was spotted in over 60% of all Ethereum blocks in the week of April 17th, The firm says that the entity also occasionally engaged in simple arbitrage strategies, but spent most of its time buying and selling tokens in its sandwich attacks.
“We analyzed how this bot has gained a lot of attention recently and outperformed other sandwich and arbitrage bots. One of the key strategies is employing many altcoins.
The bot’s account holds a significantly larger amount of tokens compared to the second-ranked sandwich bot.
This gives the bot a considerable advantage in terms of finding sandwich opportunities. The more tokens a bot holds, the more opportunities it has to execute sandwich transactions. At the highest point, Jared’s bot holds more than 800 different kinds of tokens.”
According to EigenPhi, the bot didn’t make any significant profits until April 17th, when altcoin trading volume picked up heavily.
Data from Etherscan shows that jaredfromsubway.eth’s address has conducted a staggering 414,966 transactions recorded at time of writing.
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Featured Image: Shutterstock/Jorm S