Liquidity pool sniping is a predatory trading strategy where bots rapidly detect and purchase newly listed tokens at their initial, often very low, price in a decentralized exchange liquidity pool. These bots execute transactions almost instantaneously, aiming to acquire a large portion of the supply before human traders can react. This often results in immediate price increases for the snipers. This creates an unfair advantage.
Context
Liquidity pool sniping is a significant issue for new token launches on decentralized exchanges, frequently leading to unfair initial distributions and price volatility. Project developers often implement anti-bot measures and fair launch mechanisms to counteract this practice and ensure a more equitable token distribution, promoting market fairness.
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