Solana Foundation Removes Validator Operators Involved in Sandwich Attacks on Traders
The Solana Foundation has taken a firm stance against malicious activity within its network by removing a group of validator operators from its delegation program. These validators were found to be involved in sandwich attacks, a type of fraudulent activity that exploits retail traders by manipulating transaction prices.
Understanding Sandwich Attacks
Sandwich attacks are a sophisticated form of front-running where a malicious trader searches the network for a pending transaction, places an order before it, and another immediately after. This sequence manipulates the asset’s price, allowing the attacker to profit from the difference. The process guarantees that retail investors receive the worst possible price, while the attacker reaps the benefits.
- The validators were identified through their participation in mempools, which facilitate sandwich attacks by allowing the manipulation of transaction order.
- The Solana Foundation’s rules explicitly prohibit validators from engaging in malicious activities.
Tim Garcia, Solana’s validator relations lead, announced the removal of the guilty validators via Discord. He emphasized that any operators engaging in malicious activities, including participating in private mempools to execute sandwich attacks or otherwise harming Solana users, will not be tolerated.
Solana Foundation Delegation Program
The Solana Foundation Delegation Program was established to support validators by assigning them Solana’s SOL tokens, thus relieving them of the burden of holding a significant number of tokens themselves. Delegation allows users to assign staking rights to a stake pool or validator, who are then responsible for creating blocks and verifying transactions. Validators are selected based on their performance and reliability.
Squads Labs Raises $10 Million in Series A Funding and Launches iOS Wallet App Fuse
Squads Labs, the primary developer behind the Solana-based multisig protocol Squads, has successfully raised $10 million in a Series A funding round. The firm also announced the launch of its retail-focused iOS wallet app, Fuse, which is now available on public TestFlight. This funding and new product development mark significant milestones for Squads Labs as it continues to enhance its offerings and expand its reach within the blockchain ecosystem.
Details of the Funding Round
The Series A funding round was led by Electric Capital, with participation from notable investors such as Coinbase Ventures, Placeholder VC, RockawayX, L1 Digital, and Mert Mumtaz, co-founder and CEO of Helius and founder of Odyssey Ventures.
The Squads Protocol
Squads is a Solana-based multisig protocol designed to help businesses manage on-chain assets such as treasury, tokens, and admin keys with multi-signature security.
- Since its launch in 2021, Squads has secured over $10 billion in assets—a remarkable increase from $500 million in October of the previous year.
- The protocol’s user base has also expanded, growing from over 100 clients in October to over 250 currently.
Introducing Fuse Wallet App
In addition to the funding news, Squads Labs has launched its retail-oriented iOS wallet app, Fuse, on public TestFlight. Fuse is built on top of the Squads protocol and incorporates multi-signature security for personal assets. Unlike other Solana wallets such as Phantom, which focus on onboarding and connectivity, Fuse is designed to serve as the ultimate savings account for digital net worth, reducing reliance on cold wallets or centralized exchanges (CEXs).
Iggy Azalea’s MOTHER Tokens to Gain New Utility with Planned Telecommunications Company Launch
Turning attention to the Solana meme coin space, Iggy Azalea announced that holders of her MOTHER tokens will soon be able to use them to pay for phones and services from her forthcoming telecommunications company. This development comes on the heels of a successful merchandise store launch.
Telecommunications Venture and Token Integration
Australian rapper Iggy Azalea took to social media platform X to share exciting news about her telecommunications company.
- The company, Unreal Mobile, will offer a variety of phones and month-to-month plans ranging from $20 to $80 per month, depending on data usage and network spectrum.
- Sphere Labs will handle the payment infrastructure, although it has not issued a native token as of now.
Impact on MOTHER Token and Market Performance
The announcement has already had a positive impact on the MOTHER token, which has seen an 18% increase in the past 24 hours, according to DEXTools data. This rise significantly outpaces gains in the meme coin sector, while the broader crypto market has dropped by 0.3%.
Background and Market Reception
MOTHER was issued as a celebrity meme coin on the Solana blockchain, initially sparking debate within the crypto community. Critics labeled it a potential cash grab by Azalea, while supporters saw it as a step toward broader token adoption.
