What is a front-running bot?
Front-running concept
Front-running is taking advantage of KNOWING that a future transaction will affect the price and placing an order right before that transaction to make a profit for yourself.

Example: In traditional finance, if a trader or a fund knew that Tesla’s TLSA stock was about to be bought by someone in volume up to $10M, they could place a buy order right before that, and when $10M is bought and causes the price to pump, they will immediately place a sell order and enjoy the profit.

Example of Front-running in Traditional Finance
Front-running Bot in Crypto
The ability to anticipate an impending transaction is a very important part of front-running. So why in Crypto, front-run cases happen so often and so much?

This is in the design of Ethereum or the blockchain Similar in design to Ethereum, all submitted transactions must stop in a mempool (roughly the place where transactions are waiting to be processed). Now miners or bots can scan the mempool. Bot scanning the mempool will find suitable transactions to front-run (X).

A second feature of Ethereum’s design is that miners have the power to choose the order in which transactions are processed, and of course they will prioritize transactions that pay higher fees (this is what causes the problem). MEV). So when bots finish scanning and find X, they just need to:

Place buy order with gas fee slightly higher than X’s gas.
Then place a sell order with gas slightly lower than X.
And profit from the front-run.