User Loses $113K in Gas Fees Trying to Snipe Token: Is the Bull Run Back in Web 3.0?

The High Cost of Web 3.0: Crypto User Spends $113,000 in Gas Fees for Rugged Token

In a classic bull-run scenario, a crypto enthusiast has just been spotted shelling out a whopping $113,000 in gas fees in an attempt to acquire $26,000 worth of a newly launched token on the web 3.0 blockchain.

Unfortunately, their investment proved to be futile as the token turned out to be “rugged” just 35 minutes later.

According to transaction data from Etherscan, a single wallet address engaged with a smart contract address on February 13th, transferring 10 ETH (equivalent to $26,000) to the contract.

The smart contract then converted it into Wrapped Ether (WETH) and carried out a swap for 30 No Handle (NO) tokens – an ERC-404 token recently listed on the web 3.0 platform. The proceeds from the swap were then deposited into another wallet address.

It’s clear that the high demand for NFTs and web 3.0 technology is driving users to take risks with their investments, but incidents like this serve as a cautionary tale for the potential pitfalls of the web 3.0 world.

The Rise of Web 3.0 and its Impact on Token Transactions

Recent transaction data from DeBank’s Web3 portfolio tracker reveals a staggering gas fee of 42.8 ETH, equivalent to $113,211.

This excessive gas fee spending is often seen as a bullish indicator, as users in a frenzy to capitalize on obscure tokens tend to disregard caution and chase after potential huge returns.

Unfortunately for one user, their investment in the NO token proved to be a costly mistake. Within a mere 35 minutes, the token’s price skyrocketed from $6.80 to a staggering $70,000 before crashing back down to near $0, leaving the user “rugged” according to Lookonchain.

As the popularity of NFTs and the concept of a metaverse continues to grow, the question remains: is Web3 the future of blockchain technology? With its potential for smart contracts, decentralized finance, and innovative use cases for NFTs, it’s clear that Web 3.0 has the potential to revolutionize the way we transact and interact online.

The Rise of Web 3.0 and its Impact on NFTs

In the world of blockchain, the concept of Web 3.0 is gaining momentum. This next generation of the internet is expected to revolutionize the way we interact with digital assets, particularly when it comes to tokens and non-fungible tokens (NFTs).

One recent example of this is the ERC-404 trend, which aims to merge ERC-721 NFTs with ERC-20 tokens. This experimental token standard has sparked a craze, with projects like Pandora netting over $1.1 million in profits since its launch on February 5.

However, not all tokens are created equal in the world of Web 3.0. The recent launch of the NO token, for instance, has been flagged as “high risk” by blockchain analytics service Crypto Monkey. This is due to the token’s low safety score of 0 out of 100 and the fact that just two addresses hold 90% of the token.

It’s unclear whether the user behind this token was attempting to snipe its launch or if it was simply a mistake. Nevertheless, the high gas priority fee suggests the former. This highlights the need for caution and thorough research when interacting with smart contracts in the Web 3.0 space.

As the world of Web 3.0 continues to evolve, we can expect to see more innovations and opportunities in the realm of tokens, NFTs, and decentralized finance (DeFi). This, in turn, will pave the way for the growth of decentralized autonomous organizations (DAOs) and the emergence of the metaverse – a virtual world where NFTs will play a crucial role.

Web 3.0 blockchain technology allows for the ownership of a single NFT to be divided among multiple wallets, enabling them to trade or stake their portion for loans.

NFTs have become an integral part of the web 3.0 ecosystem, providing a smart and decentralized way to represent ownership of digital assets.

The metaverse, a virtual world powered by web 3.0, offers endless possibilities for NFTs to be used in various applications, from gaming to art and beyond.