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- A crypto trader bought 30 of the new ERC-404 token ‘No Handle (NO)’ for $26K with $113,000 as gas fee only to lose it all in a rugpull 35 minutes later.
A crypto user spent $113,000 in gas fees in an apparent attempt to snipe the launch of a new ERC-404 token, which pumped and dumped to zero just 35 minutes later.
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 ERC-404 token – No Handle (NO).
Unfortunately for him, 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 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.
See Also: Here’s How This Trader Turned 1 ETH into $59K In 11 Hours Leveraging MINER Token
The proceeds of the swap were then deposited to another wallet address.
Transaction data from Web3 portfolio tracker DeBank shows the transaction incurred a total gas fee of 42.8 ETH, worth $113,211.
Outsized spending on gas fees is viewed by some 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.
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, per Dex Screener data.
Lookonchain described the user as having been “rugged” after the price of the NO token fell abruptly to near $0.
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.
Token: $NO – No Handle
Contract: 0xb7994ab503628eb0eeffc79ed2bdf9c224fae6ce💡 Analysis Highlights:
– 🔴 Top 5 Wallets holding 90.28%
– 🔴 Liquidity not Locked
– 🔴 Liquidity not Burnt
– 🔴 Contract not renounced yet
– 🟢 0/0 Tax.🐵 CryptoMonkey (CM) Score: 0/100…
— CryptoMonkey Eth Bot (@cmethbot) February 13, 2024
It’s unclear if the user was attempting to snipe the launch of the new token or if it was simply a “fat finger” error when interacting with the smart contract, however, the high gas priority fee suggests it was likely the former.
The wallet address has been capitalizing heavily on the burgeoning ERC-404 trend, netting over $1.1 million in profit on Pandora tokens — the project that has been attributed with launching the ERC-404 craze after going live on Feb. 5.
ERC-404 is an unofficial, experimental token standard that attempts to bind ERC-721 nonfungible tokens (NFTs) to ERC-20 tokens, allowing for what some have described as fractionalized NFTs.
ERC404 – token standard not found.
This new “standard” has opened up a Pandora’s box on crypto twitter over the last couple of days.
Is it an NFT, a fungible token, or both?
Here’s a simple explanation of what ERC404 tokens really are 🧵: pic.twitter.com/tl48QrIx8k
— cygaar (@0xCygaar) February 8, 2024
This allows multiple wallets to each own a portion of a single NFT and use that portion to trade or stake for loans.
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