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Report: Crypto trading bots are making billions of dollars by creating sets of trades that have been executed at the same time.

Feb 28, 2022

Bots are using the trading platform to extract large amounts of cryptocurrency while exploiting investors.

The term refers to a process where bots are programmed by software developers to spot when someone is trying to purchase a crypto asset on a blockchain, such as Ethereum or Cardano.

The bot places orders on the same token. The bot then “sells the token to the original trader at a higher price tag.”

Developers are finding it more and more difficult to execute the method due to the sheer number of other bots attempting "sandwich trading.”

Many currency trading bots have moved to other blockchains like ethereum as a result of the tether debacle.Solana, Polygon and Avalanche.

The report detailed how Solana implemented new measures to deal with the bot traders, including "flow control" strategies.