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How Does Front-Running in DeFi Compare to ‘Insider Trading’ in Traditional Finance?

DeFi front-running exploits public order flow transparency (Mempool); insider trading exploits non-public corporate information.
Greeks.Live04.11.25

How Does Front-Running in DeFi Compare to ‘Insider Trading’ in Traditional Finance?

Front-running in DeFi involves exploiting public knowledge (pending Mempool transactions) for a private advantage by manipulating order execution priority. Insider trading in traditional finance involves trading based on non-public, material information about a company.

While both are considered unfair and exploitative, front-running in DeFi is based on order flow transparency, whereas insider trading is based on corporate information asymmetry.

What Is Front-Running in the Context of Decentralized Exchanges?
What Are the Differences between Front-Running in Traditional Finance and on DEXs?
What Is a “Front-Running” Attack in DeFi and How Does It Undermine Trustless Execution?
What Is the Concept of ‘Insider Trading’ and Does It Apply to Crypto Pump Groups?

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