Smart contract sniping, a method where bots monitor on-chain activity to detect newly launched tokens and execute trades before human traders can react, is becoming increasingly prevalent. In response to this, scammers are designing fake tokens with hidden "backdoors" that appear safe to AI-powered trading bots. Once the bots detect liquidity and begin trading, scammers "rug pull" the token, causing significant financial losses. These scams are happening on a large scale, potentially resulting in tens of millions of dollars in losses. Despite the existence of technical solutions to prevent sniping, implementing them without introducing new security vulnerabilities is difficult. Without strict controls over who can trade or how transactions are executed, sniping bots can continue to exploit the system.



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