What is Gas Currency (Gas Coin Scam)

08/11/2023 03:42 • Blockchain Buzz • 90 views

What is Gas Currency? In the Bitcoin network, users can pay for Gas fees through a smart contract task. For example, when sending a transaction, a function needs to be called to determine the amount of Gas consumed by that function. When using a certain type of smart contract, corresponding Gas fees must be paid.

Currently, there are two methods to achieve this goal:

One is to convert these costs into another form (i.e., payment to other smart contracts) by calculating the required amount of GAS. Both cases aim to address the high fees in the Ethereum network. The second method is to set up a transaction in the Ethereum blockchain and execute it with the price difference between the transaction amount and the amount it takes to execute it.

Gas Coin Scam

Editor’s note: This article is from Cointelegraph China (ID: CointelegraphChina), written by MICHAEL KAPILKOV, authorized translation by Odaily Planet Daily.

The Gas Coin Scam is taking advantage of users purchasing Gas fees on the Ethereum network and attempting to scam traders, claiming to have already paid around $30,000 in Gas fees. This could be a hypothetical scam trying to draw over $1,000 worth of ETH from traders.

There is a method for them to convert their funds into Bitcoin or other cryptocurrencies, allowing them to earn massive profits – even the wallets of those who want to use cryptocurrency and trade on decentralized exchanges. The idea seems simple: “I now own 1 Bitcoin and 100,000 Gas.” Why is that? Actually, “we only need one wallet to send Gas worth millions of dollars,” but if people don’t put these funds into the Gas pool, it creates a Ponzi scheme.

The maximum amount for Gas fees is usually below $100. However, according to Etherscan data, it is currently around $300.

In addition, there are scams falsely claiming Gas fees, such as Polygon, Arbitrum, Avalanche, and Solana. These are tied to Gas prices as they allow anyone to charge users up to 2% fees to make profits without requiring users to deposit funds for Gas fees. The value of “GAS” is represented by a fictional account that provides no information: “If you want to transfer your funds with this address, it becomes the token in your wallet.” The increase in Gas fees may also be caused by this pattern – the price of Gas surges when users start withdrawing it. In fact, many people indeed consider this a scam similar to the gas fee surge during the 2017 ICO craze, but that is not the case.

As Gas fees continue to rise, the term “Gas price surge” has been on the rise. It is speculated that this concept was initially proposed by a developer, but he did not find specific reasons for its operation. Anonymous development team Gigi once said that his company recently obtained a $50 million loan to repay all debts in the protocol.

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What is Gas Currency (Gas Coin Scam)

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