Gambles 110,000 USD Gas Fee to play ERC-404 meme coin, skyrockets to 70,000 USD before crashing to zero

In the volatile world of cryptocurrencies, getting rich quickly often comes with equally rapid downturns. Recently, the ERC-404 token, which sparked a wave of excitement, experienced an incident where a $113,000 Gas Fee was spent only to suffer a devastating rug pull.

Following the ERC-404 Trend, Betting $113,000 on a Game

A daring speculator spent an astonishing $113,000 in Gas Fees to purchase a newly emerged ERC-404 token, hoping for substantial returns. However, things did not go as planned, as the token plummeted to zero within a mere 35 minutes, providing the speculator with a costly lesson on the risks of cryptocurrency trading.

### **Careful Observations of Trading: Mechanisms of Cryptocurrency Theft**

On February 13, a wallet address took bold actions, converting 10 ETH worth around $26,000 into Wrapped Ether WETH, and then into 30 No Handle NO tokens. According to DeBank's data, this transaction incurred a staggering fee of 42.8 ETH, approximately $113,211.

However, the anticipated profits turned out to be a mirage, as the price of the NO token surged from $6.80 to $70,000, only to crash to nearly zero within 35 minutes.

Lookonchain: A Typical RugPull

Data from Dex Screener shows that the token briefly skyrocketed to $70,000, then rapidly dropped to zero, leaving investors in a predicament. Lookonchain labeled this event as a typical "rug pull." The token was also rated as high risk with a security score of zero, with two addresses holding 90% of the token's supply.

Speculation or Mistake? The Tragedy of Meme Coin Gold Rush

Was it a bold bid to purchase, or simply an inadvertent overspending? Typically, willingness to bid large Gas Fees for purchases is a deliberate strategy that unfortunately led to a painful outcome.

In decentralized markets, there is a faction of investors who attempt to profit heavily by purchasing newly issued meme coins through bots or observing on-chain data, leveraging high risk for a single opportunity. This event serves as a cautionary tale for speculative meme coins, while also highlighting the rising trend of ERC-404 tokens, which combine features of NFTs and ERC-20 tokens, providing a new frontier for digital asset speculation.

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