BadCoin (BADAI) Promised Protection From Memecoin Snipers, But Its Anti-Sniping Software Backfired

As the practice of sniping gains notoriety among memecoin traders, various kinds of anti-sniping software have advertised safeguards as a way to attract buyers.

In the realm of memecoin trading, a new battleground has emerged, centered around the practice of "sniping." This term, borrowed from Wall Street jargon, refers to brokers who swiftly execute orders at optimal prices, akin to a concealed marksman targeting its quarry with precision.

As the story goes, the term "sniping" evolved to encompass high-frequency trading firms competing in microsecond-scale endeavors to secure advantageous positions. This led to fierce battles for colocation near exchange servers, all in an attempt to exploit fiber-optic latency differentials.

Eventually, the term found its way into the world of crypto, repurposed to describe a different phenomenon. In the less refined markets for memecoins, people still discuss sniping in timeframes of seconds or minutes. More specifically, they refer to "snipers" as a group of sophisticated, well-capitalized traders who scour social media and token launch platforms to uncover celebrity token launches at their precise moment of creation.

These memecoin snipers quickly locate the contract address and purchase as much of the token as possible, with the intention of selling it a few seconds or minutes later to less savvy buyers who learn about the launch through social media posts slowly disseminating the news.

Founder Mike Sarvodaya's BadCoin community sought to evade the front-running snipers of Solana memecoins. Their strategy involved launching on a distinct blockchain by Binance and leaving behind the scam-ridden Pump.fun.

However, neither of these tactics salvaged the outcome. The memecoin's price on Gra.fun soared rapidly, reaching an all-time high within five minutes, followed by a consistent decline. Later, when the token shifted from Gra.fun to the on-chain exchange Pancakeswap, its price similarly spiked to an all-time high within five minutes and crashed thereafter. A dual listing on Gate.io also saw the token reach its all-time high approximately five minutes after launch, before crashing for hours.

BNB Chain itself highlighted the token's launch with a tweet. Gra.fun also earned a dedicatedBNB Chain tweet. BNB Chain acknowledged tweeting BADAI's token generation event but denied having any commercial or investment relationships with the coin.

It went on to implore Gra.fun and BadCoin to address its shortcomings.

Gra.fun, in an X post, conceded its own failures, revealing that an integration issue with its protection filters blocked legitimate sellers. The filters operated on two liquidity pools and somehow blacklisted each other. As a result, some users who interacted with the associated pools encountered blacklisting.

Gra.fun's team is now manually investigating each address affected by this issue.

Protos has attempted to contact Bad AI for comment but did not receive an immediate response. We will keep you updated as more information becomes available.