Hello everyone! Today's 100-day challenge in the crypto space, we will talk about front-running (Insider Front Running), which is a heavily prohibited but occasionally occurring illegal practice in financial and crypto markets. Front-running exploits insider information or trading advantages to act in advance for personal gain, harming the interests of other investors. So, what is front-running? How does it work, and how can we prevent it? Let's explore today!
The runner who jumps the start 🏃
Imagine a 100-meter race, everyone is at the starting line waiting for the gunshot, but one runner jumps the start by a few seconds, gaining the advantage. Front-running operates similarly, using undisclosed information or special permissions to enter or exit the market early, seizing opportunities from ordinary investors.