Winning $60k in 11 hours? The crazy yet successful bet that a trader made with crypto

The ERC-404 represents a key evolution in Ethereum tokens. It offers developers and investors the opportunity to create and market tokens that combine the fungibility of ERC-20 and the uniqueness of ERC-721. This potential of the Ethereum crypto platform was exploited by a trader who managed to generate $59,000 by using this method.

The clever use of a known crypto method within the Ethereum ecosystem

In the fast-paced world of crypto exchanges, where fortunes can be made or lost in the blink of an eye, a mysterious trader is making headlines. By leveraging the innovative ERC-404 MINER token, this crypto user managed to turn a single Ether (ETH), Ethereum’s native asset, into a staggering gain of $59,000. This, in just 11 hours.

The strategy behind this remarkable feat reveals clever use of high gas fees in conjunction with the rapid buying and selling of the ERC-404 MINER token. The trader strategically timed his transactions, which allowed him to maximize profits and highlight the potential for earnings in the crypto market, despite its volatility.

Specifically, the process was as intriguing as it was profitable. After withdrawing 1 ETH from the crypto exchange Binance, the trader allocated a fraction of his holdings, that is, 0.065 ETH, to purchasing MINER, at an apparently modest price. However, it was the use of a substantial amount of gas fees (0.802 ETH) that facilitated the explosion of assets.

Subsequently, the crypto trader sold a portion of his MINER holdings, amassing 350 tokens worth about $15,000. This eventually enabled him to reach the total amount of $59,000. This rapid enrichment story is certainly astounding, but it is not unique.

Starting with only 1 $ETH($2,507), this smart trader made $59K in 11 hours!

His secret to making money is buying and selling the #ERC404 token $MINER using high gas!

He withdrew 1 $ETH ($2,507) from #Binance and successfully spent 0.065 $ETH($163) to buy 1073 $MINER at a very… pic.twitter.com/GQDiKupFee

— Lookonchain (@lookonchain) February 12, 2024

A case among others?

Last week, another anonymous crypto trader made over $166,000 in profits in just two days. This time, by similarly exploiting another token, the currently flourishing DeFrogs token. These successes underline the immense yield potential of the Ethereum ecosystem.

However, the rapid ascent of ERC-404 tokens has not been without pitfalls. Because, despite the initial increases in value, the segment is now experiencing significant fatigue, with the market capitalization having dropped by 30% in the last 24 hours. A situation that reminds of the brutal volatility and inherent risk of crypto investments.

Despite this, ERC-404 tokens still generate certain attractiveness in the world of crypto. This is due to the innovation they drive by combining elements of ERC-20 and ERC-721, which can yield tokens that are both fungible and unique in the long run. This is the case with the PANDORA token, for example.

This enables Ethereum users to receive not only a tradable asset but also a unique non-fungible token (NFT). The fusion of fungibility and rarity adds an additional layer of value, potentially elevating these tokens beyond mere speculative instruments.