Bull run returns? Investor shells out $113K in gas fees for token snipe, ends up ‘rugged’.

The latest crypto frenzy has taken a dramatic turn as a user splurged a staggering $113,000 in gas fees to jump on the bandwagon of a freshly launched ERC-404 token. But the excitement was short-lived as the token quickly crashed to zero just 35 minutes later.

In a classic case of bull-market exuberance, this crypto enthusiast dived headfirst into purchasing $26,000 worth of the new token, only to find themselves caught in what appears to be a “rugged” situation shortly afterward.

According to transaction data from Etherscan, a significant amount of Ether was transferred to the token’s smart contract on Feb. 13. This Ether was swiftly converted into Wrapped Ether (WETH), which then facilitated the acquisition of 30 No Handle (NO) tokens – the freshly minted ERC-404 token. However, the euphoria was short-lived.

The transaction didn’t come cheap, with a whopping 42.8 ETH, equivalent to $113,211, spent on gas fees alone. This extravagant expenditure hints at the reckless optimism often seen during bull markets, where investors are willing to take substantial risks for potential astronomical gains.

Despite the initial spike in the token’s value from $6.80 to an eye-popping $70,000, the euphoria was short-lived as it quickly nosedived back to near zero. The abrupt crash left many scratching their heads, with some attributing the event to the user being “rugged.”

Adding to the skepticism surrounding the token, Crypto Monkey flagged it as “high risk,” pointing out that just two addresses held 90% of the token supply. This revelation, coupled with the absence of contract renouncement, raised red flags among investors.

The motives behind the hefty gas spending remain unclear. Whether it was an attempt to seize upon a lucrative opportunity or simply a costly error remains a mystery. Nevertheless, the wallet address behind the transaction has been actively involved in the ERC-404 trend, reaping substantial profits from other projects like Pandora tokens.

ERC-404, an experimental token standard, aims to revolutionize the crypto landscape by enabling fractionalized ownership of NFTs. Despite the recent setback, the potential of this innovative technology continues to intrigue investors, albeit with a word of caution attached.