The Solana Foundation has taken a bold step to eliminate so-called "sandwich" attacks, which are responsible for artificially manipulating cryptocurrency prices. These attacks involve placing buy and sell orders around pending transactions, forcing retail investors to accept the worst possible prices.
Recent events have revealed a group of validators involved in such practices, prompting the Solana Foundation to remove them from its delegation program. This decision reflects the foundation's commitment to fair market practices and zero tolerance for unethical behavior.
How do "sandwich" attacks work?
A "sandwich" attack is a form of market manipulation where a malicious trader exploits a pending transaction to profit. The trader places their own transactions before and after the pending transaction, allowing them to manipulate the price and reap the difference for their own benefit.
Solana's Response
Tim Garcia, Solana's validator relations leader, expressed his outrage on the Discord forum, warning of severe consequences for all parties involved in unethical practices. "We will not tolerate any actions that harm Solana users. Anyone who engages in such behavior will be immediately removed from the program, and their designated funds will be forfeited," Garcia stated.
The Solana Delegation Program, which aims to support validators by assigning them SOL tokens, now faces a new challenge. It must not only support validators but also ensure they are not involved in any manipulations.
Mert Mumtaz, co-founder of Helius, a provider of remote procedure services for Solana, noted that some operators modify their systems to enable "sandwich" attacks. "This not only harms individual users but also undermines the entire cryptocurrency market infrastructure," Mumtaz commented.
Both the Solana Foundation's actions and the community's reactions demonstrate that transparency and fairness are crucial for the long-term health and stability of the cryptocurrency ecosystem. The Solana Foundation remains committed to protecting investors from fraud and ensuring that abuses will be ruthlessly eliminated.
