Ethereum Users Are Burning ETH to Mint a Shady Token

The last time we talked about notoriously high Ethereum gas fees was in May, when the crypto meme craze took over the entire market. And according to the charts, it didn’t take long for Ethereum network users to find themselves in a similar mess. A new token emerged on Ethereum, and people are burning their ETH like it’s worth nothing to mint VMPX, which, by the way, does seem suspicious to some network users.

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Users are burning ETH

Illustration: Lenka T.

VPMX is the New King of ETH Burning

When you look at the burn leaderboard for the Ethereum blockchain, you’ll usually see big projects such as Uniswap or Theter at the top of the list. In other words, a random and unknown crypto project can rarely push its way to the top of the chart. As a result, the recent report about the Ethereum burn spike triggered by VMPX token mint is as crazy as it sounds. 

Burn chart

Source: Ultrasound.money

According to the project founder, VMPX is a new BRC-20 token linked to the ERC-20 token, and it exists to connect Bitcoin and Ethereum.

“We’re developing one of the first bridges between the world’s largest crypto ecosystems, Bitcoin and Ethereum,” Jack Levin, the founder of the XEN ecosystem, told the Defiant.

But before jumping on another crypto shopping spree, let’s examine what we know.  

Earlier this week, Ethereum network users started using a smart contract to mint the VMPX token, resulting in another gas spike. The gas fees haven’t been this high since May, and the token mint swallowed millions of dollars in gas fees.

The worst part?

First, people are wasting money and simultaneously increasing gas fees for other network users. As if that wasn’t enough, the project itself is shady. Twitter users have come forward to express their dissatisfaction with VMPX, and for now, it seems that this newly launched token’s only utility is to increase network congestion and push the gas fees up.

The project website doesn’t provide information about the token utility. Although we don’t want to point fingers just yet, it’s advisable to be more mindful when investing. That is if you don’t want to end up burning copious amounts of ETH for nothing.  

Jelena is a content writer dedicated to learning about all things crypto. Her hobbies are playing chess, drawing, baking, and going on long walks. During winter, she usually spends her leisure time reading books.