ETH has been extremely volatile this past week. Paying high gas fees enables people to send their transactions to the front of the blockchain. It leads me to wonder: can hedge funds/exchanges manipulate the market by paying high gas fees to front run retail investors?
For example, if a hedge fund pays $100,000 USD in ETH gas per trade, their trades would be the first ones executed. They could spike or drop a crypto in milliseconds. Then, by using highly leverage derivative contracts, they could reap massive profits.
Does anyone here have enough expertise in blockchain/ETH/crypto to determine if this is possible? Or does blockchain make front running impossible?
Thank you!
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