User gave $113,000 in one ERC-404 transaction

The user bought a recently launched token worth $26 thousand, but ended up losing $113 thousand in fees. In addition, the coin he purchased dropped to zero in 35 minutes.

Lucky once, unlucky twice

According to Etherscan, On February 13, the trader transferred 10 Ethereum (ETH), or $26 thousand, to the smart contract address. The latter quickly converted the tokens into Wrapped ETH (WETH) and exchanged them for 30 No Handle (NO) coins, a new ERC-404 asset. Subsequently, the trader transferred them to another wallet.

According to the tracker DeBankthe total transaction fee was 42.8 ETH. At the current rate, this number of tokens is valued at $113,211.

The trader’s bad luck did not end there. The NO token debuted at $6.80 and quickly soared to $70 thousand. However, just as quickly, the price of the asset fell to almost zero in just 35 minutes, according to Dex Screener.

It is noteworthy that the victim is the same trader who last week managed to earn more than $1.2 million in Pandora tokens in two days.

ERC-404 tokens increase fees on the ETH network

ERC-404 is an experimental token standard that combines the characteristics of ERC-20 and ERC-721. It allows the creation of fractional non-fungible tokens (NFTs), allowing multiple wallets to own a portion of a single NFT.

The new standard attracted particular attention in early February, when the Pandora project appeared. In less than a week, ERC-404 trading volume broke through $200 million, and has now exceeded $600 million.

On February 9, the cost of gas on the Ethereum network reached an average level of 70 Gwei (about $60 for a regular transaction). At its maximum, the figure was 377 Gwei, a record high since May 2023. The main reason for this was the high demand for ERC-404.

Previously, the developers presented an alternative experimental standard DN-404, which is designed to correct the mistakes of its predecessor.