The price of HarryPotterObamaSonic10Inu 2.0 (BITCOIN) has been affected by a series of high-speed sandwich attacks, leading to increased volatility for the meme token. The attacks exploited a logic flaw in the token’s smart contract and targeted its liquidity pool. This relatively new token with only 657 holders started trading at the end of November and has had several boom and bust cycles before becoming the target of hackers.
The hacker behind the attack withdrew $243K from the token’s liquidity pool, causing price fluctuations by adding and removing liquidity at high frequency. Traders of the token were vulnerable to additional sandwich trades due to insufficient protection against Miner Extractable Value (MEV). The attack also raised questions about the larger and more widely known BITCOIN meme token, which continues to trade with unlocked liquidity despite the risks.
MEV bot attacks on Ethereum have slowed down since the early days of DeFi, but certain assets like WETH, USDC, and USDT remain targeted by sandwich bots on decentralized exchanges. The recent attack highlights the risk of small, illiquid tokens being exploited by hackers for significant value extraction. With the potential loss of up to $1.3B in value due to MEV and sandwich attacks, Ethereum users are advised to seek additional protections to ensure the best trading outcomes.
Overall, the attack on HarryPotterObamaSonic10Inu 2.0 (BITCOIN) underscores the dangers of trading on decentralized exchanges with unlocked liquidity and insufficient MEV protection. Traders should be vigilant against potential exploits, especially with relatively obscure tokens that may not have the same level of security measures in place. As the crypto market continues to evolve, it is essential for traders to stay informed and take proactive steps to safeguard their investments from malicious actors in the space.
