What are these contracts buying and selling tokens for profit within seconds?

Question

I have invested in many tokens but one thing I've noticed is that there is usually an address that buys some tokens and sells almost immediately for some profit or sometimes for a very minor loss. This usually messes up the chart, please can anyone shed some light on these contracts and how to deploy them.

Here's an example of one I found on a recent token on BSC: https://bscscan.com/token/0xd22399abd347dd6901f8b0cef004a72927c4723e?a=0x8d7bdf0ebfe5671d1113b4acec1a9471c602dc55

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The contract is actually buying and selling almost immediately and making a profit from it. Is it the same as a sniping bot?

Answer 1

This looks like a front-run attempt(also known as a sandwich attack). Front running is an attempt to profit by a malicious actor by out-bidding a target transaction's gas, which results in the front-runner buying before them. Once both transactions are through, the front-runner is at an immediate profit because of the target transaction buying after them. They later immediately sell, causing an immediate loss for the innocent user, and profiting the front runner.

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