How a quantitative trader made millions from Bitcoin trading
Title: Sophisticated Front-Running Attack Hits Bitcoin’s Ordinals Market
H2: Renewed Interest in Ordinals on Bitcoin
Ordinals, the latest trend in NFTs on the Bitcoin network, has experienced a resurgence in popularity in recent weeks following the rally of Bitcoin in November. After an initial surge in May, interest in Ordinals waned, but the recent spike in Bitcoin’s value has reignited enthusiasm for this niche market.
H2: Sniping Ordinals for Profit
Quant traders who had been preparing for an opportunity like this since May were ready to capitalize on the renewed interest in Ordinals. Their chance finally arrived when the most highly anticipated Ordinals project, Ordibots, announced its minting event on Magic Eden, a prestigious NFT marketplace on Bitcoin. Whitelisted fans had been eagerly awaiting the launch, with a countdown set for the minting ceremony. However, they fell victim to a sophisticated front-running attack.
H2: Ordinals Sniping is a Front-Running Attack
The method of sniping Ordinals involves sophisticated quant traders scanning Bitcoin’s mempools for valuable Ordinal transactions, copying them, changing the wallet address, and outbidding the transaction fee slightly. This leaves the original whitelisted fans with unconfirmed transactions while the snipers profit by reselling the stolen merchandise on the NFT marketplace.
H2: Ordibots Organizers Apologize
When the front-running attack on Ordibots occurred, the NFT marketplace Magic Eden on Bitcoin and the organizers of Ordibots publicly apologized for the incident. They took steps to address the affected users and promised to airdrop custom Ordibots to those addresses affected by the attack.
H2: Front-Running “Sniping” Attacks
The front-running attack on Ordibots highlights the growing sophistication of such tactics in the world of Ordinals. These attacks, which are a common occurrence in traditional finance, have now made their way into the Ordinals market on Bitcoin.
H3: Front-running “Sniping” Attacks on Bitcoin
The recent incident has brought attention to the vulnerability of the Ordinals market on Bitcoin to front-running attacks. It highlights the need for increased sophistication and security measures within the community to protect against such attacks, as they could become more prevalent in the future.
In summary, the resurgence of interest in Ordinals on Bitcoin has brought about a sophisticated front-running attack that targeted the highly anticipated Ordibots project. This incident has raised concerns about the vulnerability of the Ordinals market to such attacks, and will likely lead to increased efforts to protect against them in the future.
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