Cryptocurrency owner lost more than $ 113,000 trying to make money on a new token

A trader who recently earned $ 1.2 million on Pandora (PANDORA) tried to repeat his success on a new token. This time, the investor lost a significant amount of money.

The user bought a newly launched token worth $ 26,000 but lost $ 113,000 in fees. In addition, the coin he bought managed to sink to zero in 35 minutes.

According to Etherscan, on February 13, the trader transferred 10 Ethereum (about $ 26,000) to the address of a smart contract. The user converted the tokens into Wrapped ETH (WETH) and exchanged them for 30 No Handle (NO) coins, a new ERC-404 asset. The trader later transferred them to another wallet.

According to the DeBank tracker, the total transaction fee amounted to 42.8 ETH. At the current exchange rate, this amount of tokens is estimated at $ 113,211. The trader’s bad luck did not end there. The NO token debuted at $ 6.80 and quickly soared to $ 70,000. However, the price of the asset fell to almost zero in just 35 minutes, according to Dex Screener.

ERC-404 is an experimental token standard that combines the characteristics of ERC-20 and ERC-721. It allows for the creation of fractional non-fungible tokens (NFTs), so that several wallets can own a part of one NFT at once.

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

The first ERC-404 PANDORA token demonstrated a 13-fold increase, rising above $ 8,000 in a short time. According to Lookonchain, two token holders made a huge profit in a short time.