Cointelegraph By Benjamin Pirus
Users can send cryptocurrencies virtually anywhere globally via the blockchains on which they are based. By sending crypto assets, however, fees are incurred. Transactions may take longer for certain assets, depending on their related blockchains. Certain crypto wallets and platforms give users the option to choose a transaction fee. Higher fees typically result in faster transactions.
Over the years, however, some asset holders have put their coin or token values into the wrong fields, resulting in exorbitant, albeit accidental, fee payments. For example, a holder might intend to send 12 Bitcoin (BTC) at a fee of 0.01 BTC, although they might accidentally put 12 BTC into the fee box, spending 12 BTC on fees while sending just 0.01 BTC to the intended destination.
A number of fee mishaps have occurred involving Ether (ETH) and Bitcoin. Here are a few painful fee stories.
Enough Ether to pay out $1,000 per day for a year
In February 2019, one industry participant mistakenly paid a grand sum of 2,730 ETH for fees as part of three Ethereum-based transactions. The sender paid fees of 420, 210 and 2,100 ETH in the triad of transactions. According to ETH prices at the time of reporting in March 2019, the transaction costs totaled approximately $365,800.
Fortunately, this sender received an act of good will from SparkPool, the mining pool on the other end of the transaction. “Thank you SparkPool and your miners for helping us to recover our loss,” the accidental ETH transactor noted as part of a blockchain message. “We are willing to share half of 2100 ETH with the miners to thanks the miners’ integrity,” the transactor added.
Ether is now valued at $1,850 per coin at the time of publication, making this event worth just over $5 million in total.
A fee saga involving millions
In the summer of 2020, three Ethereum transactions surfaced, incurring more than $5 million worth of total combined fees, based on ETH prices at the time. Someone sent 0.55 ETH, valued near $134 total back then, in a transaction on June 10, 2020, spending a whopping $2.6 million worth of ETH on gas — an industry term for the funds paid for transactions on Ethereum’s network.
Following the multi-million-dollar fee event, two more hefty transactions surfaced. One saw another $2.6 million paid to send 350 ETH. The other transferred 3,221 ETH, tallying close to the same amount for gas — 2,310 ETH to be exact. All three moves occurred between June 10 and 11, 2020.
This saga may not have been the summation of a few mistakes, however. Subsequent reporting revealed the third transaction — the one costing 2,310 ETH to move 3,221 ETH — was the result of a “malicious attack” involving a victim’s wallet.
The pair of multi-million-dollar gas transfers remain without conclusive explanation, although theories have included simple user error, hacker-related blackmail efforts, and a suspected Ponzi scheme losing money. However, in today’s market, the three transactions are worth over $43.6 million.
DeFi comes with risks
The decentralized finance boom of 2020 came with stories of significant profit, but also at least one instance of fee turmoil. DeFi took off as another likely crypto industry bubble, complete with surging prices, suspicious project activity and other drama. Largely based on Ethereum’s blockchain, the DeFi sector began seeing high transaction fees.
Even given the high fees, however, one user paid far too much to send one of his trades through on Uniswap, a popular exchange in the DeFi niche. As reported in November 2020, this trader accidentally typed his gas amounts in the wrong places on his MetaMask wallet, pushing through a $120 trade while spending $9,500 on gas.
“I thought that this kind of things happen to others, but I was wrong,” the trader said on Reddit.
“Metamask didn’t populate the ‘Gas Limit’ field with the correct amount in my previous transaction and that transaction failed, so I decided to change it manually in the next transaction,” he explained. “But instead of typing 200000 in ‘Gas Limit’ input field, I wrote it on the ‘Gas Price’ input field, so I payed 200000 GWEI for this transaction and destroyed my life.”
Bitcoin transactions aren’t usually that expensive
Although multiple Ethereum fee bumbles have arisen, crypto participants have also suffered Bitcoin fee woes. One particular painful transaction surfaced on Bitcoin’s blockchain in December 2020. The transaction shows about 3.49 BTC paid to send just 0.00005 BTC — a fee multitudes higher than would have been necessary to send that amount of Bitcoin.
Based on TradingView data, Bitcoin’s price fluctuated between roughly $22,765 and $24,205 on Dec. 19, the day of the transaction, making the fee worth at least $79,000 back then. At the time of publication, such a transaction currently values approximately $170,000.
A seemingly similar transaction hit Bitcoin’s blockchain on Nov. 18, 2020, revealing about 2.66 BTC spent on fees for the transfer of roughly 0.01 BTC. Based on Bitcoin’s price range for Nov. 18, the sender spent at least $45,000 to transfer a comparatively paltry sum of the asset. This fee is now worth around $130,000.
Many of these transaction fee tales were likely mistakes. In crypto, taking caution is important. Rushing and distraction can sometimes lead to costly mistakes. Education is also vital. Lack of knowledge on crypto wallets, transactions and assets can yield harmful consequences when sending funds.
$97B retail firm uses IBM blockchain to track food supply
Cointelegraph By Greg Thomson
IBM’s food-tracking blockchain technology will be used by the Carrefour multinational retail firm to track food supply lines from the farm to the store. An agreement between Majid Al Futtaim — the firm that operates Carrefour in the Middle East — and IBM will see the retail giant use the IBM Food Trust initially to track two food categories: chicken and microgreens.
The IBM Food Trust is a blockchain-specific platform designed for the food industry, hosted on the IBM Cloud. Carrefour, which recorded $97 billion in revenue in 2019, will enable customers to scan QR codes on the products in question, and receive extensive information about their entire production process, according to a report by Gulf Business.
Relevant information will include product origin, date of production, transportation data, ingredients, health and halal certifications, nutrition stats, and temperature data.
Gulf Business references a recent IBM Institute for Business survey which revealed 73% of respondents sought better traceability methods for their products. Notably, 71% of respondents said they’d be willing to pay extra for services that provide it.
The CEO of Majid Al Futtaim Retail, Hani Weiss, said trust in global food supply chains was becoming an important issue — one spurred on by the outbreak of COVID-19:
“Trust in the food supply is becoming increasingly important worldwide, a trend accelerated by changing consumer demands and the subsequent health and wellbeing concerns arising from the Covid-19 pandemic.”
Weiss said the use of blockchain technology would improve operational efficiency, and build stronger customer trust and loyalty.
“It is therefore imperative for us to invest in ensuring quality throughout the value chain while simultaneously working to build robust customer trust and loyalty. In meeting the new market expectations, we are now offering enhanced food traceability for our valued Carrefour customers and improved operational efficiency for our business,” said Weiss.
IBM’s Food Trust was first used by Carrefour in November 2019, when it leveraged the blockchain technology to track the supply chain for infants’ milk formulas.
A 2020 report by Cointelegraph Consulting and VeChain suggested $300 billion worth of food would be tracked and traced on the blockchain by 2027. In an industry surprisingly rife with fraud, the use of blockchain tech would reportedly save $100 billion per year by ensuring the products that land in stores are legitimate.
Exchange listings and NFT boom back Enjin’s (ENJ) 52% rally to a new high
Cointelegraph By Jordan Finneseth
Non-fungible tokens (NFT) are rapidly becoming a focal point of the cryptocurrency market as evidenced by stories of millions of dollars being raised in minutes for one-of-a-kind tokenized art pieces and rare collectibles that traders rush to get their hands on.
One project that has been benefiting greatly from the resurgence of NFTs is Enjin Coin (ENJ), which broke out to a new all-time high of $0.67 on Feb. 25 following its listing on the Crypto.com exchange as well as the launch of spot and perpetual futures trading on FTX.
Data from Cointelegraph Markets and TradingView shows that ENJ rose 52% from a low of $0.438 on Feb. 24 to a new high of $0.67 before experiencing a pullback to its current price of $0.611.
A scroll through the project’s Twitter feed details numerous recent partnerships and integrations that have helped fuel Enjin’s price rise.
Minecraft is one of the most notable integrations for the Enjin ecosystem and users are able to earn special NFTs that unlock secret games inside the video game series.
The platform has also benefited from joining forces with the growing ecosystem of the Binance Smart Chain (BSC), which has launched an NFT educational campaign that Enjin will be part of.
VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for ENJ on Feb. 24, several hours before today’s price rise.
The VORTECS™ score, exclusive to Cointelegraph, is an algorithmic comparison of the historic and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.
As seen on the chart above, the VORTECS™ score for ENJ reached a high of 70 on Feb. 24, shortly before the price began to spike to a new all-time high on Feb. 25.
The growing popularity of the NFT space, along with numerous big-name partnerships has Enjin well-positioned as the current bull market cycle progresses into 2021.
Its recent integration with the BSC provides a way to escape high fees on the Ethereum (ETH) network and could bring a new wave of activity to the Enjin ecosystem.
Former MLB star sells $1M worth of NFTs in one minute
Cointelegraph By Brian Quarmby
Micah Johnson, a former MLB player-turned artist, sold a whopping $1 million worth of tokenized art in just one minute on the Winklevoss-owned NFT marketplace Nifty Gateway.
The auction, which launched on Feb. 21 and lasted for 28 hours, generated $2 million worth of sales in total. The auction sold NFTs representing a painted sculpture made from hand-casted resin dubbed AKU: The Moon God.
The physical AKU sculpture was also sold during the auction, fetching $305,000. The sculpture will be deposited into a vault and is subject to a two-year lockup.
The purchaser also receives exclusive access to view the sculpture — which is stored in a physical vault at the Art Angels gallery in Miami, and can resell the sculpture at any time by transferring their token.
Speaking to Cointelegraph, Johnson expressed his intention to demonstrate how non-fungible tokens can create unique experiences and utilities that go beyond the virtual world.
AKU depicts a young black child wearing an oversized space helmet and looking up to the sky. Johnson recounts finding inspiration for AKU from a heartbreaking question his sister was asked of her son, “Mom, can astronauts be black?”
In response, Johnson began painting his nephew as an astronaut, which eventually lead to the creation of AKU — a character that Johnson describes as having limitless potential:
“I wanted to give him life, bring that to light, and let the other kids or other people, adults, whoever felt like there was of their dreams to have a symbol to the whole world could relate to.”
Johnson described AKU as a great personal achievement, noting the tokenized artwork’s success as offering inspiration to people from all walks of life:
“To bring together such a diverse group of people. And let them see or be inspired by AKU, you never know how many people who collected that AKU, or sell that AKU, finally found the courage to go do something that they’ve thought about doing, dreamed about doing, and they’re going to go do it and maybe just change the world.”
The auction received widespread support from across the crypto community, including Erikan Obotetukudo, the founder of PaperTrail media:
— Erikan (@heyerikan) February 21, 2021
Within 36 hours of the auction’s completion, the tokens had generated nearly $500,000 worth of trade on secondary markets.
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