A wallet address associated with the Ethereum Name Service (ENS) domain “jaredfromsubway.eth” has reportedly earned close to $1.7 million in three days through a series of sandwich attacks. According to a tweet from non-fungible token (NFT) data platform Sealaunch, the wallet made $950,000 on April 18 alone, with profits of $300,000 and $400,000 on April 17 and 19 respectively.
Sandwich attacks involve a trader placing buy and sell orders for the same asset at slightly different prices, with the intention of profiting from the price movement caused by their own trades. By inserting a third order between their buy and sell orders, the trader can take advantage of the price difference and make a profit at the expense of other traders.
While sandwich attacks are not illegal, they are considered unethical and can harm the liquidity of a market. In the case of decentralized exchanges (DEXs), sandwich attacks can also be used to manipulate the price of a token and exploit vulnerabilities in the system.
The Ethereum Name Service is a decentralized domain name system that allows users to register human-readable names for their Ethereum addresses. ENS domains can be used as a more user-friendly alternative to long and complicated wallet addresses.
The use of ENS domains in sandwich attacks is not new, but the scale of the profits made by “jaredfromsubway.eth” has drawn attention to the issue. Some have criticized the ENS system for enabling such attacks, while others argue that the responsibility lies with the traders who carry them out.
The incident highlights the need for increased awareness and education around the risks and ethical considerations of trading in decentralized markets. While the decentralized nature of blockchain technology offers many benefits, it also presents new challenges and complexities that require careful consideration.
Regulators and industry participants alike are grappling with how to balance innovation and growth with the need for responsible and ethical practices. As the blockchain ecosystem continues to evolve, it is likely that we will see further debates and discussions around these issues.
In the meantime, traders and investors should exercise caution and diligence when participating in decentralized markets, and seek out reputable sources of information and guidance. While the potential for profit is high, so too are the risks, and it is important to approach this new frontier with care and responsibility.