Ethereum (ETH) user pays $430,000 in network fees for failed transaction

Half a million dollars in network fees

As they often say, history keeps repeating itself. A few weeks after Bitfinex made a huge mistake and spent $23.7 million in Ethereum (ETH) network fees to complete a simple transaction, an unfortunate user has just experienced the same setbacks. In fact, he was spent $430,000 in fees for a transaction that ultimately failed.

According to information reported by The Block, this person was attempting to participate in a Strips Finance Token (STRP) sale on the new token launch platform, MISO. However, the project was so popular that the sale was closed in just six seconds and only 14 addresses were able to purchase tokens.

It seems that this participant tried to use Flashbots to gain an advantage over his competitors. In a few words, Flashbots is a communication protocol between Ethereum users and miners. Unfortunately, this tool is mostly used to bribe miners to get priority in newly mined blocks and win the auction.

Read more – Strips Finance (STRP), the first DEX for trading interest rate derivatives

The fool who thought he was being taken

A strategy that could have paid off if a technical error had not come to halt this plan. Flashbots transactions are supposed to remain private until they are included in a block. But in this case, it appears that the transaction ended up in the public mempool, a publicly accessible place where transaction requests are stored before being included.

“This transaction was sent to the mempool. You can see here that Etherscan saw it in the mempool. Also, we never saw it in Flashbots relay,” tweeted Robert Miller, technical lead at Flashbots.

At this point, like any other transaction, this one was processed and nested in a block. However, because the auction was so competitive, the participant was unable to get his share of the pie and did not get any tokens back. Nevertheless, he did pay the transaction fee of 123 ETH ($430,000).

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As if that wasn’t enough, this user also placed a bid on the sale via a second transaction, which he eventually decided to cancel. A decision that cost him an additional 30 ETH ($105,000) in network fees.

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About the author : Lilian Aliaga

Ethereum (ETH) user pays $430,000 in network fees for failed transaction

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Freelance writer located between Paris and Toulouse. I want to share my passion for the world of crypto-currencies to as many people as possible. I am also interested in technical analysis and trading.
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