Bitcoin Forum

Hey folks,

Today I was really surprised when traders are willing to pay nearly 12% transaction fee to get slot to buy token of SpiderDAO.
As far as I know the way to join SpiderDAO's Presale is first come first serve, only 100 fastest people are chosen to buy tokens.  So traders must choose Gas price more than 500 wei to scramble for slots.

https://i.imgur.com/ejXc5pl.png
Here's a picture I gathered from a member of SpiderDAO Presale's participation

What do you think about Defi's hype this time?  Why are people willing to pay such a large fee like that ?  :-\

It is because of the same thought that their money would multiply in an instant through that pre sale. These investors would burn not just their money for investing to auch project but also in fees.

Well, it is their own choice and action and probably they have seen a factor that's worthy for them to invest while us, we can't.

maybe they think the investment is very profitable. and the profit they will get is greater than the fee they spend. it's all their decision, so we can't think it's wrong. But if it's me, I better not participate in the presales. if the investment is profitable, why buy only 0.8ETH. isn't that a small amount.

How DeFi is Driving The Spike in Ethereum's Gas Price (Glassnode Insights) (https://insights.glassnode.com/defi-spike-ethereum-gas-price/)
DeFi Hype Has Sent Ethereum Fees Soaring to 2-Year High: Coin Metrics (https://www.coindesk.com/defi-hype-has-sent-ethereum-fees-soaring-to-2-year-high-coin-metrics)

The fee on ERC20 chain drops considerably in the last two months after the DeFi ecosystem lost its momentum. You can check the recommended fee with some tools, like this one: https://ethgasstation.info/calculatorTxV.php

The fee now is 40 Gwei, for average-speeded transactions, it is not too high. ETH/ERC20 - Check and select good Gas price (https://bitcointalk.org/index.php?topic=5261480.msg54771880#msg54771880)

You need to know how to cancel your transactions or replace them. The topic is help you know how to do that: [GUIDE] How to cancel or replace an ETH transaction (Metamask, MEW, MyCrypto) (https://bitcointalk.org/index.php?topic=5277890.msg55253979#msg55253979)

The impression is too excessive, whatever is offered may not necessarily come true.
for me personally would not dare to participate in an event like that.
by the way does anyone know what exactly they have to offer?

As you have said, it's hype so everyone wanted to join the boat and doesn't care if they are going to pay high transaction fee that is it getting absurd by today's standard. Perhaps they think that they can get more value and making profits 10x or even more that they are willing to take the risk of 12% transaction fees on ERC-20 platform.

And that is what hype really is, investors decision become irrational all they see in front of them if $$$. But for average joe like us, we will think twice and maybe just wait further when the transaction fees goes down because our capital money is tied. And we want to squeeze very penny and profit.

12% of transaction fee is not a matter if you compare it with the fees people used in September. They spent 200 or 300 or 400 to 500 Gwei for their ERC20 transactions.

Ethereum Avg. Transaction fee (https://bitinfocharts.com/comparison/ethereum-transactionfees.html#1y)
Ethereum Median Transaction fee (https://bitinfocharts.com/comparison/ethereum-median_transaction_fee.html#1y)

See the chart Average gas price (GWei) (last 3 months) (https://blockchair.com/ethereum)

It is true that when they are thinking of profit, they skip the temp loss in fee and ignore the risk of price crash even they are buying at peaks or high prices.

They firmly believe that they will get double the profit even though they know that investing in a DeFi project like that carries a big risk. So they want to buy tokens and pay very expensive gas fees.

This is a degen play. Means the project is over hype during their sale. 170eth will be easy filled with the kind of project related to a polkastarter project that made 25x during their sale.

If this guy got in during the spider dao gas war, he already multiplied his 0.8eth to 4 to 6x. These traders doesn't necessary need the service or product of the project cause they will exit with a profit. After that jump to another ship. That's how hype on a degen play. Its up to you if you don't want but the profits earned here doesn't take more than a day to get. Its a high risk high reward style.

If you pay attention to the sale 1eth is the max of the sale per wallet. Maybe he doesn't have extra eth, but 0.8 is already big amount anyway.

That's unbelievable. If that's actually the case, then it calls for questioning. Why should any platform in crypto charge up to 12% as a transaction fees which is about 4x higher than what a traditional credit card payment platform could charge per transaction. Where does the charged fees go? To Ether or to SpiderDAO? I'm curious.

Can't blame the network for that. They set their gas fee higher to make their transaction to be executed faster. Its not the fault of the ethereum network. The fees goes to the miner whom process the transactions of course. Spiderdao didn't ask these users to put a higher gas. Its their decision to join since this is a gas war that happened on a typical limited slot ICO. No need for questioning because this is happening even before defi started to get hype. If you are aware of this kind of Hype then youll know that this is pretty "normal".

As this is a transaction on Ethereum blockchain, it is obvious that transaction fees will be paid to miners, which will be paid to validators in future. Now this is willingly paid by transaction issuer which does seem 4x of traditional card fees but you don't know about the ROI s/he is getting if he gets in. In order to get in, investor is not willing to take any chances of any failure. Now question comes to why would one pay such 12% tx fees willingly? I think you know the answer.

Risk is the reward in crypto space!

PS: This is nothing. I have seen people paying even $400-500 in order to send funds to ICO smart contracts. MedicalChain ICO is such an example!

I think OP is seeing such high transaction fees for the first time. Hype can be defined in crypto where investors are willing to send their funds with any amount of fees that can land their ETH to the smart contract. ICOs were holding the real hype, not DeFi.

That's something that happened during the peak of the ICO-hype 2017 as well. People were paying insane transaction fees just to get into the sales in the hope the token pumps right after the listing. So nothing new here. Wouldn't blame the ETH-network for that. It's just the greed of these people paired with a really stupid token-sale model

As long as a fool has money to part with, let him spent it.
One day his pockets are empty and crypto is self regulated.

IMHO, I believe Defi was already slowing down, thats why it's riskier to invest now in most Defi projects, For that reason, I believe that some investors are just speculating on the Defi project called SpiderDAO just like any other Defi projects in the market there's nothing new about it. by the way, Ethereum gas fees were still high and I experience it when I send some token that was cost me $4 dollars yesterday so technically gas still expensive when you send an ERC20 token.

Haven't use Ethereum for a while now I've heard some news about its transaction fee high never thought that it's expensive as this one. 12% was really high for me 5% is even high too what more this 12%

I really don't understand the hype behind this SpiderDao project, this just shows people have not learn from the past and I am sure some of them will still get burnt. One thing in this space is that the market always give everyone chance to buy at the right price all you need is just to wait for the price to come to you just like what happened in November those that FOMO into most of these DEFI tokens got burnt

Sincerely, I was hoping that things would look up positively different in respect to transaction and gas fees once the ETH 2.0 version is launched. Sadly, that seems not to have changed even after the launch and this is worrisome. There are lots of projects hanging, waiting for gas fees to come down. This smart contract with ETH is what is keeping it afloat despite its high gas fees. It's crazy.

maybe because they think that the project they invest in will bring you a return of 2x their initial capital, so they don't care about the high cost of gas and the most important thing for them is to buy it as soon as possible. Moreover, the presale is limited to 100 people. to be honest I just heard the Defi SpiderDAO's  project.

High gas fee is what will eventually kill ERC-20 blockchain if ethereum doesn't do something about it on time before People start to see another cheaper and we'll secured blockchain to migrate their projects to. One of the supposed benefits of blockchain technology is that you make transfer of funds all over the world with little charges or fees but we now see the opposite in the ethereum network which I see as the most used blockchain network.

Pretty stupid thing to do especially that this is an obvious trap ploy by those developers. I just cant believe how easily people is blinded by this sales that they are willing to do anything to invest into promises. Not everyone would buy that hype, only newbies who is naive.

Probably someone from the team himself buying it to give a hype to their names 8)

We are still in the DeFi hype? I thought we moved to next stage of cryptocurrencies bullish season.

I also feel the same way, this year eth gas has experienced an expensive increase, especially this month which went up very crazy, then what about the projects that are still using the ETH platform? maybe they will switch. With the BSC platform, it is possible to replace the ETH platform if the shipping costs are still expensive

Same thing when alt or btc pumps, people want to get their coins confirmed first just to cash out.

Whenever there's something like this, a chance to multiply money people will become greedy and willingly to put out some additional money but to get more money back.

Though, these kind of presale doesn't really guarantee that there gonna be profit. I wonder what really makes them confidence with the result they gonna get while all of this is uncertain.

It's not only caused by the defi hype but the ethereum is so crowded a few days ago. People are still willing to pay the large fees caused by with the assumption if they can make 100% return from there and it will be worth for them to pay large fees to secure their slot.
I have paid a few dollars to create a single transaction and that's a lot.
The defi hype is over right now.

They don't offer us anything to do, just that those who are inside the whitelist have to go one step, called GAS WAR!
Currently, the trend of Polkadot is really making a positive impact on the investor community. Perhaps that's why they accept hundreds of dollars of fees just to participate in projects on the Polkadot ecosystem.

By the way, sorry everyone so much for now I have free time to go back to my post to discuss with you. Thank you very much for your opinion so that I can better understand the current market sentiment. :-*

www.tricksburner.com

That's way beyond the real ERC20 smart contract transaction fee, it's still around 10$ to 12$ to send out tokens to another wallet, I believe the team of this Spiders so intentionally increase the gas fee since they want only very few people to have access to the presale offer, it's their doing not Ethereum blockchain

Well, TRON is good alternative to Ethereum right now. I use USDT only on TRON chain last few months.