Amid swirling cryptocurrency volatility, one user recently splurged a whopping $113,000 in gas fees to acquire new ERC-404 tokens, only to face disappointment as the value of the tokens plummeted to almost zero just 35 minutes later.
an expensive gamble
In an ambitious move, the cryptocurrency enthusiast spent $113,000 in gas fees to secure $26,000 worth of freshly minted tokens. But their hopes were dashed when the value of the token soon plummeted.
deal drama
Transaction records show that on February 13, one wallet address interacted with a smart contract to exchange 10 ETH for 30 No Handle (NO) tokens, which were quickly transferred to another address. This transaction incurred a huge gas fee of 42.8 ETH.
High risk, high reward?
High gas prices are often seen as an optimistic sign, but this gamble hasn’t paid off. The price of the NO token soared from $6.80 to $70,000 and then plummeted to almost zero within minutes, leaving users “in a difficult situation.”
caution
NO token, classified by analysts as “high risk”, suffered a sharp decline immediately after its launch. With a safety score of 0 and no contracts cancelled, the token carried significant risk.
ERC-404: Trendsetter
Users’ misfortune comes amid the rise of ERC-404 tokens, which aim to merge ERC-721 NFTs with ERC-20 tokens. Despite their potential, the experimental nature of these tokens comes with inherent risks.
uncertain future
It’s still unclear whether the user was looking for a quick profit or made an error. Nonetheless, this incident serves as a stark reminder of the volatility and risks inherent in the cryptocurrency market.