Last week saw Mango Markets losing $115 million worth of crypto due to a “profitable trading strategy” employed by Avraham Eisenberg and his team.
While it looked like an exploit on the Mango Markets platform, the process involved no hacking, which, so far, seems to have been strictly legal.
However, Eisenberg went on to pay back $67 million to ensure that the platform users would be reimbursed.
How Bots were defeated
However, Eisenberg’s hit didn’t far – and in a recent Twitter thread, he announced the creation and subsequent rugpull of Mango Inu – a shitcoin he developed exclusively to target crypto buying bots created by people looking for a quick moonshot.
The other day I deployed a shitcoin called Mango Inu and did absolutely no promotion. It got over 250k invested/gambled in like a half hour.
We’re still so far away from the bottom.
(to be clear if you buy this you will definitely lose all your money)
— Avraham Eisenberg (@avi_eisen) October 23, 2022
According to Eisenberg, the targeted bots were defeated as they bought up to $250k worth of the shitcoins within half an hour.
He also noted that no promotion was made for Mango Inu to ensure that the operation remained strictly legal.
Eisenberg finally warned his followers to flee from buying the shitcoins, as they would only lose money.
A smart move from Eisenberg
While Eisenberg had good intentions, promoting the shitcoins would have damaged his name, thus he would have been guilty for fraud, selling unlicensed securities, etc.
Since this was not the case, the rugpull remains a voluntary purchase of a useless cryptocurrency by bots masquerading as avid traders.
Although a total of $250k was allegedly harvested by Eisenberg, he admitted he forgot to use flashbots, resulting in some of the tokens being sold.
Ultimately, Eisenberg claims to have gotten about $100k for half an hour of work.
“Sadly the bots frontran the liq pull and I forgot to use flashbots so I only made like 100k instead of 250k for a half hour of work.”
Eisenberg added that he sees exploiting bots as a good thing, and he got the prank idea from an acquaintance who used to pull off similar operations during the last altcoin boom.
“Exploiting bots is good, actually. (…) Talked to someone who would deploy coins, add liq, and rug right after the bots bought, was a good low capacity strat last year when the bots bought anything that moved.”