Is the Bull Run Making a Comeback? Trader Drops $113K on Gas to Snatch Token, Only to Fall Victim to ‘Rug Pull


  • A crypto investor loses almost all of a $26,000 investment in minutes after a $113,000 gas fee.
  • The No Handle token’s value skyrockets then crashes, showcasing crypto market volatility.
  • The event highlights the risky nature of new ERC-404 token investments.

In a striking display of market volatility, a cryptocurrency enthusiast incurred a hefty $113,000 in gas fees in a bid to secure $26,000 worth of a novel ERC-404 token, only to witness its value crash to nearly zero within 35 minutes. This incident, occurring on February 13, underscores the high-risk nature of investing in emerging digital assets.

The individual, aiming to capitalize on the debut of the No Handle (NO) token, executed a transaction involving the transfer of 10 Ether (approximately $26,000) to a smart contract. This contract converted the Ether to Wrapped Ether (WETH) and facilitated the purchase of 30 NO tokens. However, the venture turned sour as the token’s value soared to an astonishing peak of about $70,000 before plummeting back to near zero, all within a brief timeframe.

Transaction records from Etherscan and the Web3 portfolio tracker DeBank revealed that the transaction attracted a gas fee of 42.8 ETH, equivalent to $113,211. Such extravagant expenditure on transaction fees often signals a bullish sentiment in the crypto market, where investors are willing to take significant risks for potential high returns. Nevertheless, this investment ended in disappointment as the token’s value collapsed.

The dramatic rise and fall of the NO token’s price highlights the speculative nature of certain crypto investments. Dex Screener’s data indicated the token’s rapid valuation changes, marking a cautionary tale for investors drawn to newly listed digital assets. Blockchain analytics firm Crypto Monkey flagged the NO token as “high risk,” citing a safety score of 0 out of 100 and noting that two addresses controlled 90% of the token’s supply.

The incident also highlights the growing interest in ERC-404 tokens, an experimental standard that merges aspects of ERC-721 nonfungible tokens (NFTs) with ERC-20 tokens, facilitating fractional ownership of NFTs. This enables investors to own portions of an NFT, expanding possibilities for trading and leveraging these assets for loans.

In conclusion, the unfortunate loss experienced by the investor serves as a stark reminder of the unpredictable and sometimes scary terrain of the cryptocurrency market, particularly with experimental and newly launched tokens.