Lightspeed

Crypto’s Annoying MEV Problem | Weekly Roundup

Jan 10, 2025
Guest
Dan Smith
Dan Smith, former Lightspeed host and Blockworks Data Lead, dives deep into the complexities of crypto data. He investigates the pitfalls of Fully Diluted Valuation (FDV) and its misleading implications. Dan discusses the role of stablecoins and the innovative concept of conditional liquidity in Solana, especially in relation to sandwich attacks. He also sheds light on miner extractable value (MEV) and its impact on trading practices, emphasizing the necessity for transparency and data-driven insights in the crypto landscape.
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ANECDOTE

Wash Trading Bot on Solana

  • Dan Smith discovered a Solana bot that generated $800B in fake volume.
  • The bot exploited low fees and flash loans to wash trade JUPE tokens.
ADVICE

Avoiding Data Noise

  • Always question data anomalies, asking "why" instead of blindly trusting growth.
  • Focus on revenue as a harder-to-game metric.
ADVICE

Reasoning Over Data

  • Prioritize reasoning over raw data, especially in crypto, unless it comes from reliable sources like Blockworks Research.
  • Cross-chain data comparisons are unreliable due to each chain's unique features and varying levels of wash trading.
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