The investment turned out to be successful, and the individual has made a substantial profit of several hundred thousand dollars.
Crypto traders are paying high prices to invest early in newly-launched meme coins and acquire a significant portion of the available supply.
According to data from the blockchain, a trader paid a very large fee of over 64 ether (ETH) on Monday to acquire 84 ether worth of a meme token called “four” (FOUR). This meme token is based on the popular “4” meme found on Crypto Twitter.
The trader ended up spending more than $120,000 to purchase $156,000 worth of FOUR tokens. Interestingly, it was discovered that the trader was the second person to buy FOUR tokens, and they are currently holding onto their investment, which has now gained a potential profit of almost $240,000.
Somebody paid 64 ETH ($120k) in fees to withdraw 84 ETH ($156k)
this is memecoin season pic.twitter.com/TaC9mkXmLY
— MinisterOfNFTs 🔮 (@MinisterOfNFTs) May 8, 2023
According to DEXTools, FOUR tokens had a trading volume of $136 million on their debut day and currently have a market value of $30 million as of Tuesday.
Additional data from on-chain sources reveals that the leading early buyers of FOUR tokens have earned profits ranging from $240,000 to $2 million. This explains why traders were willing to pay exorbitant fees to acquire these tokens.
Right now, the crypto market is focused more on chasing joke-based investments rather than solid and fundamental opportunities. This trend has led to significantly high transaction fees, known as gas fees, on the Ethereum blockchain.
Gas refers to a form of payment made in the Ethereum network by users to ensure their transactions are processed quickly by validators. These validators prioritize transactions that offer higher fees rather than following a strict first-come-first-serve order. As a result, fees for popular tokens can sometimes reach thousands of dollars.