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Crypto user spends $113,000 in gas fees in a failed attempt to snipe new ERC-404 token launch

TL;DR

  • A crypto user spent $113,000 in gas fees to buy a new token, but it crashed within 35 minutes.
  • The token’s price went from $6.80 to $70,000, then dropped to near zero, causing significant losses.
  • Despite risks, the user had previously made profits in the ERC-404 trend, totaling over $1.1 million.

In a speculative frenzy characteristic of bull markets, a crypto user recently expended a staggering $113,000 in gas fees to seize a newly launched token. The attempt, however, ended in disappointment as the token, known as NO, experienced a swift rise and fall within just 35 minutes after its debut.

A costly gambit

The ambitious user initiated a transaction on February 13th, transferring 10 Ether (ETH), valued at around $26,000, to a smart contract address. This smart contract promptly converted the ETH into Wrapped Ether (WETH) and exchanged it for 30 units of the freshly listed ERC-404 token, NO. 

Despite the relatively modest investment, the gas fees associated with this transaction amounted to a whopping 42.8 ETH, equating to an eye-watering $113,211.

The initial excitement surrounding NO saw its price surge from $6.80 to an astronomical peak of approximately $70,000 per token. However, this euphoria was short-lived, as the token’s value rapidly plummeted to near zero within 35 minutes. 

This sudden reversal left the user and other investors reeling from what has been described as a “rugged” incident.

High-risk ventures

Before the unfortunate NO investment, the wallet address associated with this user had been actively capitalizing on the ERC-404 trend, amassing over $1.1 million in profits from Pandora tokens. 

Notably, the ERC-404 standard, an experimental token framework, aims to merge the characteristics of ERC-721 non-fungible tokens (NFTs) with ERC-20 tokens, enabling fractionalized ownership of NFTs.

Despite the allure of potential profits, the NO token’s safety score of 0 out of 100, as assessed by blockchain analytics service Crypto Monkey, highlights the inherent risks associated with such ventures. 

The token’s contract had not been renounced, and a mere two addresses held 90% of its supply, raising concerns about centralization and susceptibility to manipulation.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Ibrahim Abdulaziz

A fervent advocate, Ibrahim shares his wealth of knowledge on crypto and blockchain technology in an engaging and informative style. He frequents places where influencers gather for his next scoop. His vision is that the decentralized nature, security features, and potential for financial inclusion will drive widespread massive crypto adoption.

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