In typical bull-run fashion, a crypto user has just been spotted spending a staggering $113,000 in gas fees in an attempt to purchase $26,000 worth of a newly launched token.
Unfortunately for them, the token was seemingly “rugged” no more than 35 minutes later.
According to transaction data from Etherscan, a single wallet address interacted with a smart contract address on Feb. 13, transferring 10 Ether (ETH) (worth approximately $26,000) to the contract.
The smart contract then swapped it into Wrapped Ether (WETH) and executed a swap for 30 No Handle (NO) tokens — a newly listed ERC-404 token. The proceeds of the swap were then deposited to another wallet address.
A user spent $113,000 on gas for a $26,000 transaction: Source: Etherscan
Transaction data from Web3 portfolio tracker DeBank shows the transaction incurred a total gas fee of 42.8 ETH, worth $113,211.
Some view outsized spending on gas fees as a sign of a bull market when users tend to throw caution to the wind in the hopes of making huge returns on obscure tokens.
The wallet appears to be the initial caller of the smart contract. Source: DeBank
Unfortunately for the user, the price of a single NO token spiked from $6.80 on launch to a whopping peak of approximately $70,000 before plummeting back down to near $0 within a span of 35 minutes, according to data from Dex Screener.
Lookonchain described the user as having been “rugged” after the price of the NO token fell abruptly to near $0.
The price of the NO token whipsawed from $6 to $70,000 and back to $0 in less than 40 minutes. Source: Dex Screener
Meanwhile, the NO token has been given a safety score of 0 out of 100 and flagged as “high risk” by blockchain analytics service Crypto Monkey, which notified users in a Feb. 13 X post that the token’s contract had not been renounced and that just two addresses held 90% of the token.
Related: Blockchain community divided over new ERC-404 tokens
It’s unclear if the user was attempting to snipe the launch of the new token or if it was…
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