Crypto Developer Makes $6M Mistake, Locks Up Ether For 100 Years: Here's How It Happened

Zinger Key Points
  • Developer mistakes Ethereum mainnet for testnet.
  • Will anyone remember this incident in 100 years?

In an unusual turn of events, a developer who was experimenting with their first test token on the online forum 4chan mistakenly locked away five Ether ETH/USD (valued at approximately $9,000) for a century, under the impression they were utilizing testing funds on the Ethereum testnet, as per their forum posts.

The peculiar incident quickly gained attention in the cryptocurrency community, causing the test token's market cap to skyrocket to $6 million before experiencing a 70% drop, The Block reported.

However, some observers have expressed doubts about the authenticity of the incident.

One Twitter user commented, "It's 4chan. The whole damn thing is probably a larp."

The incident began when the developer sought assistance on 4chan for creating their first test ERC-20 token and securing it.

Subsequently, they launched a token named test (TEST) on the Ethereum mainnet.

A 4chan user responded, recommending the use of UNCX Network, a protocol designed for securing liquidity tokens. The developer then added five Ether and 1 billion test tokens as liquidity on the decentralized exchange protocol Uniswap, receiving 70,700 liquidity provider or LP tokens in return.

These LP tokens can be exchanged for the underlying liquidity.

The developer then secured these LP tokens using the UNCX Network protocol, setting the lock-up period to last until December 31, 2123.

Consequently, the tokens are now inaccessible until that date, and can't be used to reclaim the original ether and test tokens secured in liquidity on Uniswap.

After the transactions were completed, the developer responded that they "will get uncx."

Three minutes later, they posted again, stating they had done so (without any new action), before inquiring about how to unlock the tokens.

They confirmed that they had locked the Ether for 100 years, mistakenly believing it was on the Ethereum testnet.

Another user pointed out the error, stating, "That’s not testnet ser" — indicating that the developer had locked real funds for a century.

Also Read: Goldman Sachs: AI Is Like Discovering Electricity Again, Global Investments To Reach $200B By 2025

Following this exchange, screenshots of the conversation circulated on Twitter.

Some users interpreted the lockup as a positive sign, arguing that it prevented the developer from abruptly withdrawing from the project.

Others simply enjoyed the humor of the situation.

As a result, the test token's price surged.

Data from GeckoTerminal indicates that it initially spiked before reaching a high of $0.006, with a $6 million market cap.

However, its price has since declined to $0.0014, with a $1.5 million market cap.

The incident has been met with widespread skepticism, with many speculating that it was a calculated move to attract attention.

Even on the original 4chan post, users suggested that it was a "manufactured shill by crypto personalities, just like $bald" and that it was a larp.

Some Twitter users humorously requested to be reminded of the incident in 100 years.

Read Next: Is USDC Losing Its Grip On The Stablecoin Market? 'Macroeconomic Headwinds Are Favoring Tether'

Join Benzinga's Future of Digital Assets in NYC on Nov. 14, 2023 to stay updated on trends like AI, regulations, SEC actions & institutional adoption in the crypto space. Secure early bird discounted tickets now!

Market News and Data brought to you by Benzinga APIs
Posted In: CryptocurrencyNewsMarkets4chan Developercrypto marketCrypto TwitterERC-20 tokenEthereum TestnetTest TokenUNCX NetworkUniSwap
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!