New Study Shows Bots Have Detrimental Effect on Crypto Trading

A new study by a team of computer scientists from Cornell Tech, Carnegie Mellon University, the University of Illinois in Urbana Champaign and ETH in Zurich examined whether trading on decentralized exchanges is fair; they took a look at six exchanges over the course of 18 months; the study showed that there was a big impact from computer bots whose intention was to take advantage of information to make as much money as possible; “Like high-frequency traders on Wall Street, these bots exploit inefficiencies in [DEXes], paying high transaction fees and optimizing network latency to front-run trades,” the research paper declares according to the FT. “We observe bots competitively bidding up transaction fees in order to obtain priority ordering.” Source.

Todd is the Chief Product Officer of LendIt Fintech.

He is the host of PitchIt: the fintech startups podcast, a weekly interview show featuring emerging fintech founders and leading venture capitalists.

He is responsible for leading the content team which covers fintech through daily & weekly email newsletters, editorial, virtual events, and in-person conferences.

He has been covering fintech, banking, and venture capital for more than 15 years, including speaking regularly at industry events.

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