The world of cryptocurrency is often associated with innovation, decentralization, and democratization. However, beneath the surface, a different story is unfolding. Automated programs, commonly referred to as crypto bots, are increasingly dominating the market, manipulating prices, and ruining airdrops.
These bots operate with speed and precision, tirelessly performing their programmed functions 24/7. While they bring benefits to their owners, they also create significant disparities in the market, leading to an uneven playing field. The consequences are far-reaching, with bots causing congestion on blockchain networks, resulting in higher transaction fees and slower processing times.
The Solana network, which overtook Ethereum in fee revenue this week, has experienced firsthand the impact of bot activity. During the memecoin craze, the network experienced severe congestion issues, with as many as 75% of transactions failing. The situation was so dire that Solana developers had to release an update in April to address the congestion.
The rise of MEV (Maximal Extractable Value) is another example of how bots are manipulating the market. MEV is the practice of extracting value from Ethereum transactions by inserting own transactions to get in first on the trade or adding transactions before and after large orders to profit from expected price changes. This additional profit is an example of MEV.
While some argue that MEV is a natural part of blockchain operations, others see it as widescale illegitimate theft by network operators. The growth of MEV has been dramatic, with $1.78 billion in MEV extracted since the Ethereum Merge in September 2022.
The impact of bots on airdrops is also significant. Airdrops, which were once seen as a reliable token launch method, have been hijacked by bots and Sybil farming. This has led to unfair distributions and a lack of transparency in the token allocation process.
The future of crypto is uncertain, with some experts predicting that the rise of bots will continue to erode trust in the market. As the industry grapples with the consequences of bot activity, it is clear that a balance must be struck between the benefits of automation and the need for fair market practices.

BitminerFactory is brought to life by Darrell Houghton, our astute publisher. With a deep-rooted passion for crypto and crypto mining spanning many years, Darrell’s unwavering enthusiasm fuels his daily quest for knowledge. He is eager to share the pivotal news stories of the day while also providing his own analysis and commentary with Bitminer Factory’s readers.
Source: Cointelegraph