A Web3 user recently became the center of attention by incurring a transaction fee of $113,000 to acquire tokens worth $26,000 during a market surge. On February 13, the user transferred 10 Ethereum, equivalent to roughly $26,000, to a smart contract which in return provided 30 No Handle tokens, a novel ERC-404 token. The deal, which involved the conversion to Wrapped Ether (WETH) before the token swap, resulted in the funds being moved to a different wallet.
Enthusiasm Peaks in Digital Markets
The transaction cost, which totaled 42.8 Ethereum, was confirmed by the Web3 asset manager DeBank. This fee is indicative of the speculative nature during a bull market, where exorbitant sums are spent in pursuit of potential profits from lesser-known digital assets.
The investment soon turned unfavorable as the NO token’s value skyrocketed to $70,000 each from its initial price of $6.80, only to crash almost completely within 35 minutes. The user, labeled as a ‘whale’ after the price collapse, was identified by the blockchain analytics firm Lookonchain.
Investor Beware: The Highs and Lows of New Tokens
Furthermore, warnings about the NO token’s high-risk nature were issued by Crypto Monkey, which flagged the token with a security score of zero and cautioned users that the token’s contract was not yet secure, with 90% of it held in just two wallets.
The user’s intentions remain uncertain—whether it was an intentional market manipulation or an accidental ‘fat finger’ error during the smart contract interaction. The high transaction fee hints at possible deliberate action. The investor has previously profited over $1.1 million from the recent ERC-404 token wave, starting with gains from the Pandora token, which initiated the frenzy.