User loses USD $135,000 worth of Ethereum while trying to buy WTF tokens – DiarioBitcoin

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Low liquidity in the initial minutes following an airdrop of the popular Fees.wtf tool saw one user lose over 42 ether.

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Already the only name of the token involved: WTF (which are the initials in English of What the fuck, English vulgarism used to show stupefaction, astonishment, misunderstanding, disagreement), and whose translation into Spanish could be: “But what the hell?” or “what the hell?” (although if we go literally it would be something like “what the hell is this?”).

Well, it turns out that the data on the blockchain of Ethereum show a user lost over $135,000 worth of Ether while trying to buy tokens Fees.wtf (WTF) shortly after an airdrop last night. so reported Coindesk.

The Data of Etherscan they show that the user accidentally exchanged 42 ether for 0.00004 WTF. However, this amount of WTF was worth just $0.00000525172 at the time of writing, according to data from CoinGecko.

The bug was due to low liquidity in the trading pool, causing some in crypto circles to criticize how the developers of Fees.wtf funded the initial pool.

What is it Fees.wtf

Fees.wtf is a tool that allows users to track the fees they spend on Ethereum. The platform launched its WTF tokens yesterday, jumping into the broader trend of crypto projects distributing tokens to users’ wallets based on their use with those protocols rather than trading directly on the market.

Use cases include staking WTF or its liquidity pool tokens with annualized returns. Users are also eligible to receive a non-fungible token (NFT), which, according to Fees.wtf, it is unique to each individual wallet.

Speculators rushed to accumulate WTF shortly after its listing on Uniswap, the exchange based on Ethereum, in the hope that an eventual price increase would bring them good returns. But the low amount of initial liquidity in Uniswap didn’t get the effect.

Explain Coindesk that liquidity pools on decentralized exchanges (DEX) like Uniswap they are different from how traditional exchanges work. A pool refers to a set of two tokens provided by users to a DEX, which then uses smart contracts to match transactions and automatically raise or lower the prices at which the two tokens trade for each other.

That’s where the problem was, highlights the medium. The data from Blockchain show that the developers of Fees.wtf planted the initial group in Uniswap with more than 2211 WTF and only 0.000001 ETH, which caused a huge imbalance in the trading pool. This allowed users to sell low amounts of WTF for relatively high amounts of Ether, while buyers of WTF they ended up buying tokens at a value much higher than the real one.

It is worth noting that token prices fell more than 32% in the last few hours, dropping from an initial $0.28 to as low as $0.08 by the time it is 6:40 a.m. in New York, according to data from CryptoMarkets. The volume of operations since midnight has been 28 million dollars, according to that portal.

Sources: Coindesk, Etherscan, Fees.WTF

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User loses USD $135,000 worth of Ethereum while trying to buy WTF tokens – DiarioBitcoin

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