Bull run back? User spends $113K in gas to snipe token only to be ‘rugged’

By Sunil Gavhane

Updated on:

Bull run back

Bull run back: Someone spent $113,000 in transaction fees trying to quickly buy a new digital currency as soon as it launched. However, the value of this currency went up and then dropped to nothing only 35 minutes later.

A crypto user recently spent an enormous $113,000 just on transaction costs trying to buy $26,000 of a new token, acting just like people do when cryptocurrency prices are soaring.

Sadly for them, the token seemed to fail or lose value just 35 minutes later.

Etherscan, a website that tracks transactions, shows that on Feb. 13, one person’s digital wallet sent 10 Ether (a type of digital money worth about $26,000) to a smart contract (a program on the Ethereum blockchain).

The smart contract changed it into Wrapped Ether (WETH) and traded it for 30 No Handle (NO) tokens, which are a new type of ERC-404 token. After the trade, the money from the trade was moved to a different wallet address.

Some people think paying a lot for transaction fees shows a strong market because users are willing to take big risks hoping to earn a lot of money from lesser-known digital currencies.

Sadly for the user, the cost of one NO token shot up from $6.80 to around $70,000 and then crashed to almost $0, all within 35 minutes, based on information from Dex Screener.

Lookonchain said the user was cheated when the price of the NO token suddenly dropped to almost $0.

The NO token is considered very unsafe, with a safety rating of 0 out of 100, according to the Crypto Monkey blockchain service. They warned users on February 13th that the token’s contract was still controlled by its creators and that only two people owned 90% of the token.

It’s not clear if the person was trying to quickly buy the new digital currency as soon as it was available, or if they just made a mistake while using the digital contract. But, the fact they paid a lot extra to make the transaction happen fast suggests they probably did it on purpose.

The wallet address has made a lot of money, over $1.1 million, from the growing popularity of ERC-404 by investing in Pandora tokens. This project started the ERC-404 trend when it began on February 5.

ERC-404 is a new, unofficial rule being tested that lets people break down unique digital items (NFTs) into smaller parts using a common type of digital currency, making it possible to own a piece of these unique items.

This lets many wallets each have a part of one NFT and use that part to trade or get loans.

Disclaimer: The information on this website isn’t meant to be taken as advice for investing money. Investing involves uncertainty, and there’s a chance you could lose your money when you invest.

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