What Are the Ethical Implications of Profiting from Information Asymmetry?

The ethical implications center on fairness and market integrity. Profiting from information asymmetry, especially through front-running, is widely considered unethical because it involves exploiting privileged knowledge to gain an unfair advantage over other market participants.

This erodes trust in the market, as it suggests the playing field is not level. While the technical nature of DeFi makes front-running possible, the practice violates the spirit of equitable financial markets.