The crypto industry is under siege – not by regulators, but by bots.
From meme coin launches to airdrops and NFT mints, an increasing number of Web3 activities are being gamed, overwhelmed, and often entirely dominated by bots. These aren’t just script kiddies; they’re sophisticated, high-frequency systems designed to drain value from the ecosystem before real users can blink.
Airdrop Warfare
One of the clearest examples of the bot invasion came during the LayerZero airdrop in June 2024. Almost immediately after eligibility was announced, users began reporting significant delays and errors – not due to system failure, but because thousands of bot wallets were hammering the claims portal.
According to a Dune Analytics dashboard by @hildobby, over 800,000 wallets claimed the airdrop, but blockchain sleuths estimate that up to 50% of these were likely Sybil wallets — fake or duplicate accounts created solely to farm the drop. While LayerZero claimed to have disqualified over 600,000 wallets, critics argued that bots still captured a substantial share of the rewards.
This isn’t an isolated incident. Airdrops from projects like Starknet, Arbitrum, and Optimism have all seen similar bot infiltration. In response, protocols are turning to more complex Sybil detection methods – but it’s a cat-and-mouse game, and the bots are winning more often than not.
LIST | A Look at the Top 10 Biggest Airdrops in Crypto History
At the time of this writing, 2021 remains the highlight year for airdrops, as 18 out of the top 50 crypto airdrops happened that year, up from only 5 major airdrops in 2020.
2022 and 2023 saw fewer major crypto… pic.twitter.com/3DPwXeI3C7
— BitKE (@BitcoinKE) September 29, 2024
Bots Rule the MemeCoin Casino
Bots don’t just dominate airdrops. They’re also carving out massive profits in the memecoin space.
On Solana, where thousands of tokens launch each day, bots routinely scan for new token listings, snipe buys in the first block, and dump tokens within seconds. Human traders don’t stand a chance – by the time they see a trending token on social media, the bots have already pumped and dumped it.
INTRODUCING | https://t.co/nDFpSnSj5U Decentralized Exchange, #PumpSwap, Surpasses $100 Million TVL in Less Than 2 Months Amid Memecoin Trading Surge
The rise of #memecoins is fueling unprecedented growth in Solana’s decentralized ecosystem.https://t.co/MsO12GIapZ @pumpdotfun pic.twitter.com/gtFXcLReti
— BitKE (@BitcoinKE) May 10, 2025
One infamous case was the launch of the TrumpCoin memecoin in May 2024. A trading bot purchased the entire initial liquidity in the same block the token launched, flipping a $3,000 investment into $2 million in under 10 minutes.
The same patterns have been observed on Ethereum and Base. Bots pay priority fees (MEV) to get ahead in the memecoin lottery, outpacing human reaction times and draining liquidity before real users can act.
REPORT | #MemeCoins were the Top-Performing Crypto Sub-Sector, #Solana was the Most Dominant Blockchain in 2024
Memecoins were the top-performing sub-sector, with 212% growth. https://t.co/5e3W9yeCDM @solana @solana_daily @binance pic.twitter.com/YWBQWcVx7C
— BitKE (@BitcoinKE) January 26, 2025
MEV and the Invisible War
This behavior ties into a broader phenomenon in crypto known as MEV – maximal extractable value.
MEV refers to the ability of network participants (typically validators or block builders) to reorder, insert, or censor transactions in a block to extract value. Bots leverage MEV to sandwich or frontrun trades — spotting a user’s transaction, buying the asset first, and selling it back at a higher price just seconds later.
While MEV can be viewed as a feature of permissionless blockchains, its real-world impact is controversial. Critics argue it undermines fair access and creates a predatory environment where only the most technically advanced actors win.
REPORT | Bots Account for 90% of Stablecoin Transactions, Says VISA
Cuy Sheffield, Head of Crypto, #VISA, pointed out that stablecoins transactions may frequently be double-counted depending on the platforms involved in fund transfers.
For instance, converting $100 worth of… pic.twitter.com/rsRGIIiYuo
— BitKE (@BitcoinKE) May 10, 2024
Can Crypto Defend Itself?
So far, attempts to curb bot dominance have had mixed results.
Projects like EigenLayer are experimenting with reputation-based systems, and others are turning to biometric or social verification to gate access. But these solutions come with their own trade-offs: complexity, centralization, or privacy concerns.
[TECH] EXPLAINER GUIDE | A Look at EigenLayer – Restaking Ethereum to Earn More Rewards: EigenLayer, introduced on the mainnet in June 2023, comprises a set of smart contracts operating on the Ethereum blo.. https://t.co/yeoaVYeR8n via @BitcoinKE
— Top Kenyan Blogs (@Blogs_Kenya) April 14, 2024
Ultimately, the crypto space may need to reimagine how it incentivizes participation. As long as open networks offer free money to anyone with an address, bots will find a way in.
It’s a philosophical dilemma at the heart of Web3: how do you stay open and decentralized while defending against bad actors who move faster than any human can?
The war against bots isn’t just technical – it’s existential.
Stay tuned to BitKE for deeper insights into the evolving global crypto regulatory space.
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