A cart user lost 42 Ether (ETH) Thursday night (13). According to data from Etherscan, the loss occurred when he tried to buy an unknown token called Fees.WTF (WTF).
The operation was performed on Uniswap V2. According to information from the official website, the Fees.WTF protocol carried out an airdrop – a free token distribution – on Thursday night. After that, the user tries to make the purchase.
The data shows that 42 ETH was equivalent to $135,000 at the time of purchase. However, it was only a purchase that was made 0.00004 WTF, which was equal to $0.00000525172 at the time of purchase. That is nearly 2,000 times less than $0.01.
In practice, the user lost his money in a rude way. Based on the current exchange rate of the dollar, the loss of the anonymous user is 746 thousand Brazilian real.
Low liquidity affected the operation
The deal failed due to low liquidity in the complex in which it was made. According to the anonymous profile named Pentoshi, the pool was only $0.79. Therefore, the regime did not have sufficient funds to support the operation.
After the crash happened, some people criticized the developers of Fees.WTF. For them, the liquidity failure represented a mistake in the way the initial pool obtained financing.
As the graphics of the blockchain data show, the WTF developers established the initial set in Uniswap With over 2,211 WTFs, but only 0.000001 ETH placed, causing a huge liquidity imbalance.
This allowed users to sell low amounts of WTF for relatively high amounts of ETH. Here is what happened with this transaction: the user paid over 40 ETH for a fraction of the WTF.
On the other hand, WTF buyers ended up buying tokens at a much higher value. Soon, sellers profited at the expense of whoever received the token.
WTF price has taken a big hit and has worked down nearly 60% from its high. After exceeding $0.20, it is only $0.09 at the time of writing.
About the project
Fees.WTF is a popular tool that allows users to keep track of the fees they spend on transactions in Ethereum (ETH). The protocol dropped it directly into users’ wallets based on their usage prior to distribution.
One of the possible uses of this token is to feed the liquidity pool, which provides annual returns of up to 7000%. In addition, users can get a non-fungible token (NFT), which is Fees.WTF says that it is unique to each individual wallet.
These advantages have motivated traders looking to accumulate WTF. After the airdrop, the token was listed on Uniswap, which led to the expectation of huge returns. But subsequent events made the optimism fade.
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