The last week was pretty hectic, but perhaps what got the crypto community most excited was the launch of Apecoin (APE). To summarize, APE is the native cryptocurrency that underpins the Bored Ape Yacht Club ecosystem and was launched on March 17 and airdropped to BAYC investors. NFT coin has reached billions of dollars in trading volume after being listed on some of the leading exchanges. Amidst all this, one particular transaction stood out and caught the attention of many. Let’s take a closer look at what actually happens when a bot sells 2.4 APEs for 946 ETH, which was worth $2.7 million at the time.
Viral ApeCoin (APE) Transaction
The former Coinbase engineer, known on Twitter as 0xbeans.eth, revealed the transaction in question:
The expert cites three relevant transactions to understand what is really going on and that no one has sold 2.4 APEs for almost $3 million.
What is Sandwich Attack?
First, when someone sends a transaction to the Ethereum network, the transaction is not executed immediately and is not included in a block. Instead, it goes to a memory pool and sits there waiting for a miner to retrieve it. The way miners choose which transactions to include is often dependent on the gas fee. For example, if you want to buy 10 APE for 100 ETH and you have set a 2% bias, you say you are ready to pay a maximum of 102 ETH for 10 APE when your transaction is settled.
This is where miner extractable value (MEV) bots come into play. They are set up to hunt such transactions and pre-run them by bidding the price up to an increasing amount (by 2% in the example above), squeezing the primary transaction between two other people – a large number of buyers.
What happened in the Apecoin transaction?
The transaction in question belongs to someone trying to trade 1.5 ETH for APE. But we can also see that there is a bot that sends two more transactions before and after the original transaction and sandwiches it.
The first transaction bought APE for around 4.13 ETH, after which the original transaction was executed facing the divergence. After that, the last transaction sold the APE it bought for 4.45 ETH, making a profit of about 0.3 ETH in a single block. cryptocoin.com As we have reported, a user managed to seize 1 million dollars worth of ApeCoin via flashloan.
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