Nearly 12% transaction fee on the ERC-20 platform!

[Paycoinzzz]

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.


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 ? 

[jossiel]

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.

[takngantuk]

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.

[tbct_mt2]

How DeFi is Driving The Spike in Ethereum's Gas Price (Glassnode Insights)
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

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)

[Maxre]

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?

[Jating]

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.

[tbct_mt2]

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.

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
Ethereum Median Transaction fee

See the chart Average gas price (GWei) (last 3 months)

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.

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.

[zeingrind777]

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.

[cryptoaddictchie]

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?

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.

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.

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.

[globalcitizen]

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.

[cryptoaddictchie]

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".

[bittreo]

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.

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!

[MoreStamps.Global]

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.

[MandatoryOption]

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

[Tash]

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.

[masterrex]

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

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.

[ongkok87]

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%

[jacafbiz]

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

[Mpamaegbu]

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
Ethereum Median Transaction fee

See the chart Average gas price (GWei) (last 3 months)

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.

[ije07]

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.