The Viral Transaction in a Bot Selling 2.4APE for Nearly $3 Million The last week was full of events, but the APE Coin launch was what most people were most excited about.
APE coin is the native cryptocurrency which underpins Bored Ape Yacht Club ecosystem. It was launched on March 17th, and airdropped at holders of NFTs that are related to BAYC. The coin was able to hit some of the most popular exchanges and saw billions in volume. One transaction stood out among all the rest and attracted many people’s attention. Let’s have a closer look at what really went down when a bot seemingly sold 2.4 APE for 946 ETH, worth $2.7 million at the time.
The Viral APE Transaction
UnpackingThe whole situation was created by the crypto proponent and ex-Coinbase engineer, 0xbeans.eth. This is the result of the transaction: Expert talks about the three transactions that are pertinent to understanding what really happened and how nobody sold 2.4 APE for nearly $3 million. What happened is the so-called “sandwich attack.” This is possible due to the automated market makers, such as Uniswap & Sushiswap.
What is a Sandwich Attack?
First things first, when someone sends a transaction to Ethereum’s network — it doesn’t get executed and included in a block immediately. It is instead sent to a mempool where it sits waiting for a miner. The way miners choose which transactions to include is usually based on the gas fee — the higher it is, the more prioritized a transaction would be. Slippage is another thing to be aware of. When setting slippage on a DEX like Uniswap, you’re basically 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). The miner extractable worth (MEV) bots are here to help. They are set up to hunt transactions of the kind and front-run them by bidding the price up to the increased amount (following the above example — by 2%), squeezing the primary transaction between two others — one that buys a huge number of tokens to increase the price by 2 % and one that sells them at a higher price, essentially sandwiching the initial transaction — hence, the name.
What really happened in the APE transaction?
This transaction is about someone trying to exchange 1.5 Ethereum for APE tokens. However, we can also see that there’s a bot who submitted two other transactions before and after the original one and got it sandwiched.
The first transaction purchased APE for approximately 4.13 ETH. The original transaction was then executed with slippage. The last transaction, which sold APE for 4.45ETH, netted 0.3ETH profit.