An overpriced but lucrative transaction – In the world of cryptocurrencies, transaction fees can sometimes lead to disastrous situations. Recently, a trader spent the astronomical sum of $118,000 in gas costs on Ethereum to buy $155,000 of a memecoin.
A bold bet on the memecoin Four (FOUR) that could have ended in disaster
On May 4, a trader had a bitter experience. Indeed, he bought a large amount of memecoin tokens called Four (FOUR) on Uniswap. In total, he exchanged 84 Wrapped Ethers (WETH) against 13.8 billion FOUR tokens, for a total value of $155,000. So far, nothing out of the ordinary.
However, what surprised the crypto community were the 64 ETH gas fee attached to the transaction. A sum that the trader has voluntarily paid in order to speed up his transaction. Indeed, this represents the equivalent of $118,000 in gas costs.
Quickly, the news spread on Twitter. It’s the user FlurETH who was able to give some context to the situation. Indeed, he disclosed that the question trader currently holds 133ETH ($245,667) from unrealized profit on his investment in the memecoin.
Indeed, this maneuver allowed him to be the second wallet to buy FOUR. Therefore, the price increase more than covered the astronomical fees spent on the transaction.
>> Earn bitcoin rewards while shopping, anyone? Register on Coinmiles and receive an additional 25,000 satoshis from your first purchase (commercial link). <<
Ethereum once again victim of its fees
Gas charges on the network Ethereum have become a recurring topic of debate. Indeed, at each period of increase in activitythe network has to deal with a significant congestion.
The recent memecoin craze, especially the Pepe (PEPE), is one of the main factors driving up Ethereum gas fees. At the time of writing this article, the average transaction fees of Ethereum are $22.98the highest level recorded since May 2022.
Nevertheless, this enthusiasm around memecoins could be great news for Ethereum. In fact, the price of ETH has been able to correlate with the cost of gas many times. Therefore, this increase in interest, and therefore in fees, could result in a rise in ETH priceas may have been the case in 2017, then in 2021.
For its part, the network Bitcoin Also currently suffering from the same symptoms. In effect, the rise of Ordinals and BRC20 led to a significant phenomenon of congestion on this one.
In the buying mood right now? The JDC gives you a good reason to give in to your desires. Sign up for Coinmiles now to earn bitcoin rewards on your purchases. In addition, you will receive 25,000 satoshis with your first order (commercial link).