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During a general bull run, a Web3 user drew attention by paying a surprising $113,000 in transaction fees to purchase a newly released token valued at $26,000. According to transaction data from Etherscan, a single wallet address interacted with a smart contract address on February 13, transferring approximately $26,000 worth of 10 Ethereum to the contract.
Bull Market Frenzy Continues
The smart contract then exchanged this for Wrapped Ether (WETH) and executed a swap for 30 No Handle (NO) tokens, a newly listed ERC-404 token. The proceeds from the swap were subsequently deposited into another wallet address. Transaction data obtained from Web3 portfolio tracker DeBank shows that the transaction was subject to a total transaction fee of 42.8 Ethereum, valued at $113,211.
Some users view the excessive spending on transactions as a sign of a bull market, where users are willing to disregard caution in hopes of high returns from obscure tokens.
Unfortunately for the user, data from Dex Screener indicates that the price of a single NO token surged to an enormous peak of about $70,000 from $6.80 when it was launched and lost almost all of its value within 35 minutes. Blockchain data analytics platform Lookonchain identified the user as a whale following the NO token price’s sudden drop to zero.
Noteworthy Details on the Matter
Meanwhile, the NO token was given a security score of 0 out of 100 and was marked as high risk by blockchain analysis service Crypto Monkey, which informed users in a February 13 post that the token’s contract had not been renounced and that 90% of the tokens were held in just two addresses.
It is unclear whether the user was trying to manipulate the new token launch or if it was simply a ‘fat finger’ mistake while interacting with the smart contract. However, the high transaction priority fee likely indicates the former. The wallet address has been significantly benefiting from the emerging ERC-404 trend and has made over $1.1 million in profits from Pandora tokens, a project that started the ERC-404 craze after its release on February 5.
ERC-404 is an unofficial, experimental token standard that attempts to link ERC-721 nonfungible tokens to ERC-20 tokens and allows what some users describe as fractionalized NFTs. This enables multiple wallets to each own a portion of a single NFT and use that portion for trading or staking.
