Whale pays $120,000 Gas fee just to prioritize receiving meme coins?

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A $120,000 Gas Fee: Profit or Loss?

According to blockchain data observer Whale Alert, an address faded.eth exchanged 84 ETH for WETH on Uniswap at 3 pm on the 8th, then purchased about 1.37 billion Meme tokens FOUR, paying a staggering 64 ETH (valued at approximately $120,000 at the time) as Gas fee, and gradually sold them from that evening to early morning today.

(Source: Etherscan)

It seems that the address voluntarily increased the Gas fee in order to prioritize obtaining the Meme coin, aiming to shorten the transaction success time. Through on-chain user FlurETH's estimation, as of early morning today, including the realized and unrealized profits from selling and holding FOUR tokens, the address has reached 133 ETH (valued at around $245,000).

According to Coindesk, this address seems to be the second address to purchase FOUR, with the first four addresses holding profits ranging from $240,000 to $2 million, clearly showing why buyers are willing to pay hefty Gas fees to enter early.

It is worth noting that the recent high transaction fees caused by congestion on the Bitcoin and Ethereum networks have been criticized by internet users, emphasizing that the fees charged to users are becoming increasingly unreasonable. They state that unless network costs become more affordable and manageable, the widespread adoption of so-called blockchain networks will remain difficult to achieve.

(Source: https://etherscan.io/chart/gasprice)

The Legend of Hundredfold Gains, Like the Calm Before the Storm

In recent days, the market has been ignited by the Meme coins and BRC-20 trend, bringing a spark to the previously quiet bear market, with overnight tales of sudden wealth spreading like wildfire.

"History does not repeat itself, but it rhymes." Heat often comes with risks, and the rise of meme coins last time may be a signal that the market is about to enter a cold winter.

In May 2021, Doge token, known as the originator of meme coins, saw its price soar to an unprecedented high of $0.74, only to plummet rapidly with the declining market, now standing at $0.072, a 90% price drop. Therefore, despite the high market sentiment, caution is still needed when investing in high-risk assets.

(Source: https://coinmarketcap.com/currencies/dogecoin/)