Grug Capital – Grug (Finally) Teaches Us MEV (S6E12)
Flirting with Models
NFT Sniping and Exploiting Vulnerabilities: Profiting Strategies in the NFT Market
During the early days of the NFT bull run, users faced difficulty in participating in initial NFT sales, leading them to buy on secondary markets. Higher quality NFT drops were minted for low prices and immediately sold for higher multiples. By using flashbots, buyers could purchase these mints at low prices and sell them immediately for profit. However, it was observed that holding onto the inventory instead of selling it quickly resulted in even more profits as the value of NFTs kept increasing. Another successful strategy involves finding and exploiting vulnerabilities in smart contracts deployed on-chain by running MEBots. By doing so, it is possible to trick a bot into transferring its entire balance to the exploiter, leading to significant financial gains depending on the bot's operation and capitalization.
