Ethereum user mistakenly sends $9500 transaction fee for the transfer of $120

An Ethereum user made an error when conducting a transaction on the Ethereum blockchain. The user sent across transaction fee of $9,500.

By · Nov 8, 2020 . 5min read

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A user on the Ethereum blockchain has spent $9500 in transaction fees to transfer just $120. The user made such a transaction to trade only $120 worth of Ether for a DeFi token. “ProudBitcoiner,” a pseudonymous account, narrated his situation on the Reddit social media platform. The user elucidates that he mistakenly transcribed the incorrect transaction fee while trading.

The Redditor utilized MetaMask, to swap 0.2922 wrapped Ether (WETH) for 531 Chi Gastoken (CHI) worth about $120 on the Uniswap exchange. MetaMask is a leading in-browser Ethereum wallet. Whereas, Uniswap is a non-custodial exchange for ERC-20 tokens. This implies that the trade directly happens from users wallet. Thus, enabling them to install the gas prices manually, they are ready to settle for a transaction. The user notes that they had lately downloaded MetaMask version 8.1.2, and had not before confronted difficulties with the population of the Gas Limit field before.

Ethereum mining pool approved the transactions in 30 seconds.

Nevertheless, the user paid an abnormal fee of 23.517 ETH, which equals to approximately $9,500. Ethermine mining pool processed the transaction within 30 seconds. It further collected the fees as miners favour prioritizing transactions that users have advanced higher fees. Any trading mistakes during cryptocurrency transactions usually are expensive and concluding in nature. The user revealed that he made a costly mistake.

For the uninitiated, Gas limit or gas price is the total cost or price that a user is ready to spend for the submitted transaction to be mined on the Ethereum blockchain. It is denoted in Gwei (1 GWei is 10-⁹ ETH). The Reddit user has communicated the Ethermine mining pool for assistance. Nevertheless, Ethermine has not provided any acknowledgement to the user’s application. However, the mining company has no responsibility to do that. The company would only return the money only if they want to do so.

The firm’s parent company, BitFly, suffered a similar problem earlier this year when someone paid over $2.6 million in ETH as a portion of transaction fees in a block mined by Ethermine. Nevertheless, BitFly pocketed the money after securing the funds for four days. It further stated that any similar issues in the future would not be subject to any examination or refund.

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