The ethereum Foundation, the organization that leads the development of this blockchain, made a ethereum/tx/0x20f1f47c24b087621ff784c1f837465ed88758ac7d31750fa4da3e0a7df4157c” target=”_blank” rel=”noopener nofollow”>new eth sale in exchange for millions of dollars. This time, the organization fell victim to the vicious fee market structure that governs transactions on the network.
According to cryptojournalist Colin Wu, an attacker extracted around $10,000 from the ethereum Foundation. When the organization transferred 1,7000 eth to the Uniswap decentralized exchange (DEX), the transaction was caught in a “sandwich attack.”
Performed by a Maximum Extractable Value (MEV) bot as part of a strategy to capitalize on the online fee market. These robots get ahead of other users on the network and exploit the transaction structure by placing two transactions between the one they are trying to “attack.”
In this case, an MEV bot made two transactions between the ethereum Foundation’s eth operation. The first of these transactions is made after the robot detects the large eth transfer, and then the entity sends a similar transaction, paying a larger fee and advancing the base.
The Foundation is subsequently forced to pay more for the transaction, which directly impacts the price of eth. The brief momentum is captured by the second transaction made by the MEV robot.
As the report indicates, the “sandwich attack” cost the ethereum Foundation $9,101 and the attack received around $4,060. Other data provided by Wu indicates that the organization remains one of the largest eth whales.
Following its sale of 1,7000 eth, the organization holds over 316,760 eth worth $500 million. The different addresses associated with the Foundation hold more than $550 million in tokens and stablecoins.
ethereum-Foundation-eth-ETHUSDT-eth-Price-chart-1-640×374.jpg” alt=”ethereum Foundation eth ETHUSDT eth Price Chart 1″ width=”640″ height=”374″ srcset=”https://technicalterrence.com/wp-content/uploads/2023/10/Ethereum-Foundation-under-attack-selling-1700-ETH-cost-them-so”https://technicalterrence.com/crypto/ethereum/”>ethereum-Foundation-eth-ETHUSDT-eth-Price-chart-1-640×374.jpg 640w, https://technicalterrence.com/wp-content/uploads/2023/10/Ethereum-Foundation-under-attack-selling-1700-ETH-cost-them-so”https://technicalterrence.com/crypto/ethereum/”>ethereum-Foundation-eth-ETHUSDT-eth-Price-chart-1-768×449.jpg 768w, https://technicalterrence.com/wp-content/uploads/2023/10/Ethereum-Foundation-under-attack-selling-1700-ETH-cost-them-so”https://technicalterrence.com/crypto/ethereum/”>ethereum-Foundation-eth-ETHUSDT-eth-Price-chart-1-750×439.jpg 750w, https://technicalterrence.com/wp-content/uploads/2023/10/Ethereum-Foundation-under-attack-selling-1700-ETH-cost-them-so”https://technicalterrence.com/crypto/ethereum/”>ethereum-Foundation-eth-ETHUSDT-eth-Price-chart-1.jpg 773w” sizes=”(max-width: 640px) 100vw, 640px”/>ethereum Foundation holdings after the sale of eth. Source: Arkham Intelligence
The ethereum Foundation has put heavy selling pressure on the eth spot market. Over the past two years, the organization has made similar transactions worth millions of dollars.
When other participants record these transactions, they generally follow suit and increase selling pressure on the price of eth. Therefore, it often leads to local highs in the price of ethereum and a persistent downtrend.
As a result, these transactions are frowned upon by the crypto community. The latest “sandwich attack” was not significant in size, but it revealed the hostility present among cryptocurrency users. One answered According to Wu’s report: “Traditionally, they are usually sold before big sales.”
At the time of writing, the eth price is suffering from the short-term effects of Foundation transactions on market sentiment. The cryptocurrency registers a
ethereum-Foundation-eth-ETHUSDT-980×467.png” alt=”ethereum Foundation eth ETHUSDT” width=”980″ height=”467″ srcset=”https://technicalterrence.com/wp-content/uploads/2023/10/Ethereum-Foundation-under-attack-selling-1700-ETH-cost-them-so”https://technicalterrence.com/crypto/ethereum/”>ethereum-Foundation-eth-ETHUSDT-980×467.png 980w, https://technicalterrence.com/wp-content/uploads/2023/10/Ethereum-Foundation-under-attack-selling-1700-ETH-cost-them-so”https://technicalterrence.com/crypto/ethereum/”>ethereum-Foundation-eth-ETHUSDT-640×305.png 640w, https://technicalterrence.com/wp-content/uploads/2023/10/Ethereum-Foundation-under-attack-selling-1700-ETH-cost-them-so”https://technicalterrence.com/crypto/ethereum/”>ethereum-Foundation-eth-ETHUSDT-768×366.png 768w, https://technicalterrence.com/wp-content/uploads/2023/10/Ethereum-Foundation-under-attack-selling-1700-ETH-cost-them-so”https://technicalterrence.com/crypto/ethereum/”>ethereum-Foundation-eth-ETHUSDT-1536×732.png 1536w, https://technicalterrence.com/wp-content/uploads/2023/10/Ethereum-Foundation-under-attack-selling-1700-ETH-cost-them-so”https://technicalterrence.com/crypto/ethereum/”>ethereum-Foundation-eth-ETHUSDT-750×357.png 750w, https://technicalterrence.com/wp-content/uploads/2023/10/Ethereum-Foundation-under-attack-selling-1700-ETH-cost-them-so”https://technicalterrence.com/crypto/ethereum/”>ethereum-Foundation-eth-ETHUSDT-1140×543.png 1140w, https://technicalterrence.com/wp-content/uploads/2023/10/Ethereum-Foundation-under-attack-selling-1700-ETH-cost-them-so”https://technicalterrence.com/crypto/ethereum/”>ethereum-Foundation-eth-ETHUSDT.png 1759w” sizes=”(max-width: 980px) 100vw, 980px”/>eth price is moving sideways on the daily chart. Source: ETHUSDT on Tradingview
