Express
Algorithmic Trading Firms Are Gaming The System, Likely Contributing To Ethereum's High Fees
Summary: A glitch in Ethereum's most used software Geth has led to an increase of individuals spamming the network to secure trade profits over the past 6 months, Certus One co-founder Hendrik Hofstadt has reported. Transaction spamming is one reason why user fees have skyrocketed in recent months. Algorithmic trading firms have started monitoring Ethereum's mempool for ...
A glitch in Ethereum's most used software Geth has led to an increase of individuals spamming the network to secure trade profits over the past 6 months, Certus One co-founder Hendrik Hofstadt has reported.
Transaction spamming is one reason why user fees have skyrocketed in recent months. Algorithmic trading firms have started monitoring Ethereum's mempool for large trades on platforms like UniSwap and once the orders go through the firms' bots place orders to profit off the price movement, Hofstadt told Coindesk.
Developer Philippe Castonguay predicts that about $5.99 million in gas fees have been used to spam transactions for this purpose. The Geth team has approved a new execution model on a first-come, first-serve basis in the hopes it will curve the practice.
By Emily Mason
Tags: Algorithmic Trading,Ethereum,Geth,Uniswap
Link: Algorithmic Trading Firms Are Gaming The System, Likely Contributing To Ethereum's High Fees [Copy]
