In a whirlwind of crypto volatility, a user recently splurged a jaw-dropping $113,000 in gas fees in a bid to snag a new ERC-404 token, only to face disappointment as the token's value plummeted to near-zero just 35 minutes later.
A Costly Gamble
In an ambitious move, a crypto enthusiast shelled out $113,000 in gas fees to secure $26,000 worth of a freshly minted token. However, their hopes were dashed when the token's value crashed soon after.
The Transaction Drama
Transaction records reveal that a wallet address interacted with a smart contract on February 13, exchanging 10 ETH for 30 No Handle (NO) tokens, which were swiftly transferred to another address. The transaction came with a staggering gas fee of 42.8 ETH.
High Risk, High Reward?
While hefty gas fees are often seen as a bullish sign, this gamble didn't pay off. The price of the NO token soared from $6.80 to an astonishing $70,000 before plummeting back to near-zero within minutes, leaving the user "rugged."
A Cautionary Tale
The NO token, flagged as "high risk" by analysts, saw a precipitous drop shortly after launch. With its safety score at zero and its contract not renounced, the token posed significant risks.
ERC-404: The Trendsetter
The user's misfortune comes amid the rise of ERC-404 tokens, which aim to merge ERC-721 NFTs with ERC-20 tokens. Despite the potential, the experimental nature of these tokens carries inherent risks.
Uncertain Futures
Whether the user was chasing quick gains or made an error remains unclear. Nevertheless, the incident serves as a stark reminder of the volatility and risks inherent in the crypto market.
