TL;DR
- Crypto investor spends $113,000 in gas fees to participate in the launch of an ERC-404 token.
- NO Token experiences a dizzying rise from $6.80 to $70,000 in 35 minutes, followed by a rapid drop to near-zero levels.
- Warnings about the speculative nature of ERC-404 tokens, with NO marked “high risk” due to the concentration of token ownership.
In a risky move that reflects the fervor around cryptocurrency markets, a crypto investor has recently made headlines by spending a staggering $113,000 in gas fees to ‘snip’ the launch of a new ERC-404 token.
The investor, intending to take advantage of an opportunity in the changing crypto asset landscape, transferred 10 ETH (approximately $26,000) to a smart contract address, triggering a sequence of transactions that ultimately resulted in the acquisition of 30 NO tokens.
According to official data from Etherscan, the investor spent approximately $113,000 in gas fees to carry out this transaction.
However, the NO token experienced a meteoric rise and subsequent crash in just 35 minutes.
Initially listed at $6.80, its price skyrocketed to a staggering peak of around $70,000 before quickly falling to near-zero levels.
This rollercoaster ride left the investor reeling, as the token’s value evaporated almost as quickly as it had materialized.
The ERC-404 token standard, although experimental and unofficial, has gained traction within the crypto community for its attempt to merge the functionalities of ERC-721 non-fungible tokens (NFTs) with ERC-20 tokens.
This innovation enables fractionalization of NFTs, allowing multiple parties to own and trade portions of a single NFT.
However, with innovation comes risks, as evidenced by the rapid rise and fall of the NO token.
Despite the potential for high returns, the speculative nature of ERC-404 tokens carries inherent risks
The NO token, in particular, received a security score of 0 out of 100 and was flagged as “high risk” by blockchain analysis service Crypto Monkey.
Concerns were raised about the concentration of token ownership, with just two addresses holding 90% of the token supply.
Such warnings underscore the importance of thorough due diligence before engaging in high-risk investments within the crypto space.
This story serves as a lesson in the volatile nature of cryptocurrency markets and the importance of conducting thorough research before making investment decisions in such environments.
Although there is the potential for significant profits, there is also the risk of substantial losses.
