Crypto User Spends $113K in Gas Fees

A crypto user spent $113,000 in gas fees to buy $26,000 worth of a new token only for it to crash within 35 minutes.

A crypto user has just spent an astounding $113,000 in gas fees to purchase $26,000 worth of a freshly minted token. This event is reminiscent of the bull-run phenomenon that occurs in the cryptocurrency market.

Unfortunately for them, the token appeared to be “rugged” a little more than 35 minutes after it was given to them. Etherscan’s transaction data indicates that on February 13 a single wallet address communicated with a smart contract address, transferring 10 ethers to the contract,l equivalent to around 26,000 thousand dollars.

After that, the smart contract converted it into wrapped Ethereum (WETH) and swapped 30 No Handle (NO) tokens, a newly listed ERC-404 token. The swap resulted in sending the funds to a different wallet address.

The transaction data from the Web3 portfolio tracker DeBank shows that the transaction from the Crypto user incurred a total gas fee of 42.8 ETH, equivalent to $113,211.

Some individuals hold the belief that a surge in gas fee expenditures is a sign of a bull market, where users tend to disregard caution in hopes of reaping substantial profits from unconventional coins.

According to statistics from Dex Screener, the price of a single NO token jumped from $6.80 on launch to a staggering peak of almost $70,000 before crashing back down to around $0 within 35 minutes. This is unfortunate for the Crypto user because it occurred during the cryptocurrency’s launch phase.

Immediately following the sudden drop in the price of the NO token to close to zero dollars, Lookonchain referred to the Crypto user as having been “rugged.” In the meantime, the blockchain analytics firm Crypto Monkey has assigned the NO token a safety score of 0 out of 100 and categorized it as “high risk.”

The service informed readers in a post on February 13 that the contract for the token had not been renounced and that only two addresses possessed 90% of the token.

It is unclear whether the Crypto user was attempting to snipe the launch of the new coin or whether it was just a “fat finger” problem that occurred when they were engaged with the smart contract. The high gas priority fee, on the other hand indicates that the former is most likely the case.

After going online on February 5, the wallet address has been making a significant amount of money off of the growing ERC-404 trend. The project credited with starting the ERC-404 frenzy has generated over $1.1 million in profit from Pandora tokens.

Developers are currently working on ERC-404, an unauthorized and experimental token standard to connect ERC-721 nonfungible tokens (NFTs) to ERC-20 tokens.

This would make it possible to create fractionalized NFTs, as some people have said. Multiple wallets can possess a portion of a single NFT and they can use that portion to trade or stake in loans. This makes it possible for this to happen.