Users can send cryptocurrencies virtually anywhere in the world using the blockchains on which they are based. However, there are fees for sending crypto assets. Transactions may take longer for certain assets, depending on the associated blockchains. Certain crypto wallets and platforms offer users the option to choose a transaction fee. Higher fees usually translate into faster transactions.
Over the years, however, some wealth owners have put their coin or token values in the wrong boxes, resulting in exorbitant, if accidental, fee payments. For example, a holder might intend to send 12 Bitcoin (BTC) for a fee of 0.01 BTC, despite accidentally entering 12 BTC in the fee box and spending 12 BTC on fees while only delivering 0.01 BTC to the intended destination sends.
A number of fee accidents have occurred with Ether (ETH) and Bitcoin. Here are a few painful fee histories.
Enough Ether to pay out $ 1,000 a day for a year
In February 2019, an industry participant mistakenly paid a total 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 amounted to around 365,800 US dollars.
Fortunately, that sender got goodwill from SparkPool, the mining pool at the other end of the transaction. “Thank you SparkPool and your miners for helping us to make up for our loss,” noted the accidental ETH transactor as part of a blockchain message. “We are ready to share half of 2100 ETH with the miners to thank the miners’ integrity,” added the Transactor.
Ether is now valued at $ 1,850 per coin at the time of publication, making this event worth a little over $ 5 million in total.
A fee saga with millions
In the summer of 2020, three Ethereum transactions surfaced that resulted in fees totaling more than $ 5 million, based on ETH prices at the time. Someone sent 0.55 ETH, valued at nearly $ 134 at the time, in a transaction on Jan.
Two more hefty transactions surfaced after the multi-million dollar fee event. One paid another $ 2.6 million to send 350 ETH. The other transferred 3,221 ETH, which is roughly the same amount for gas – 2,310 ETH to be precise. All three parades took place between June 10 and 11, 2020.
However, this saga may not have been the summary of some mistakes. Later reports revealed that the third transaction – which cost ETH 2,310 to move ETH 3,221 – was the result of a “malicious attack” involving a victim’s wallet.
The two million dollar gas transfers are left with no conclusive explanation, even though theories include simple user errors, hacker-related blackmail attempts, and a suspected Ponzi scheme that lost money. In today’s market, however, the three transactions are valued at over $ 43.6 million.
DeFi carries risks
The 2020 boom in decentralized finance was accompanied by reports of significant gains but also at least one case of fee turbulence. DeFi started off as just another likely bubble in the crypto industry, complete with soaring prices, suspicious project activity, and other dramas. The DeFi sector, which is largely based on Ethereum’s blockchain, saw high transaction fees.
However, despite the high fees, a user paid way too much to submit one of their trades through Uniswap, a popular exchange in the DeFi niche. As reported in November 2020, this trader accidentally entered their gas quantities in the wrong places on their MetaMask wallet and enforced a $ 120 trade while spending $ 9,500 on gasoline.
“I thought things like that happened to others, but I was wrong,” the trader said on Reddit.
“Metamask did not fill in the correct amount in the ‘Gas Limit’ field on my previous transaction and this transaction failed, so I decided to manually change it on the next transaction,” he explained. “But instead of entering 200,000 in the ‘Gas Limit’ input field, I wrote it in the ‘Gas Price’ input field, so I paid 200,000 GWEI for this transaction and destroyed my life.”
Bitcoin transactions are usually not that expensive
Although several Ethereum fee bumblebees have occurred, crypto participants have also suffered Bitcoin fee problems. A particularly painful transaction surfaced on Bitcoin’s blockchain in December 2020. The transaction shows that roughly 3.49 BTC was paid to send just 0.00005 BTC – a fee that would be much higher than what would have been required to send that amount of Bitcoin.
Based on TradingView data, the price of Bitcoin fluctuated between approximately $ 22,765 and $ 24,205 on December 19, the day of the transaction, which was at least $ 79,000 at the time. At the time of writing, one such transaction is currently valued at approximately $ 170,000.
A seemingly similar transaction hit Bitcoin’s blockchain on November 18, 2020, revealing that around 2.66 BTC was spent on transfer fees of around 0.01 BTC. Based on Bitcoin’s price range for November 18, the sender spent at least $ 45,000 to transfer a comparatively small amount of the asset. That fee is now around $ 130,000.
Many of these transaction fee stories were likely mistakes. Caution is advised with crypto. Hustle and bustle and distraction can sometimes lead to costly mistakes. Education is also important. Lack of knowledge of crypto wallets, transactions, and assets can have detrimental consequences when sending funds.