Cryptocurrency traders are paying high sums to own the earliest newly released memecoins, with the aim of holding a large supply of tokens.
On-chain data shows a trader paid more than 64 ether (ETH) on Monday for four tokens worth 84 ether, a newly released memecoin on the ethereum blockchain that may based on meme Encrypted Twitter “4”.
This means that the trader spent over $120,000 to get four tokens worth $156,000. However, some investigators point out that the trader was only the second entity to buy the four companies — with an unrealized profit of nearly $240,000 now.
fam I’ll explain what’s going on in your screenshots so nft influencers don’t get made fun of like bitboy now
A sniper pays a tx fee of 64 eth to speed up his transaction and become a second buy four dollars
13.7 billion won four dollars Now worth 281e
281 – (64 +84) = 133 eth profit 💰 pic.twitter.com/9hbp8JTQYd
— Flur (@FlurETH) May 8, 2023
Data from DEXTools shows that the FOUR token had a trading volume of $136 million on its first day of trading, with a market capitalization of $34.2 million at the time of trading at $0.000007 per token.
Four price charts on DEXTools. Source: TradingView
Subsequent on-chain data showed that profits for the top four early buyers ranged from $240,000 to $2 million—suggesting why traders are willing to pay high fees for tokens.
The current hot bargain in the cryptocurrency space has people looking for jokes instead of basic projects, which has resulted in huge gas fees on the Ethereum blockchain.
Gas is the amount of ETH that Ethereum users pay to ensure their transactions are included in the earliest blocks by network validators. These validators are incentivized to include the highest paying transaction, rather than on a first-come, first-served basis — meaning fees for popular coins can often run into the thousands of dollars.
- A bunch of memecoins see double digit discounts
- Creating Memecoins is easy, it only takes 27 seconds
According to CoinDesk