NFT Investor Burns CryptoPunk NFT worth $135k by mistake
Mistakes happen in the NFT sector. It’s just unfortunate that some are irreversible that it put huge holes in one’s pocket. In one such case, NFT trader Brandon Riley accidentally burned his $135k worth of CryptoPunk NFT #685 while trying to wrap it.
Brandon Riley bought Punk 685 for 77 ETH (about $135k) with the intention of holding it forever. Riley sent the NFT to a burn address by mistake while trying to wrap it, which removed NFT from circulation permanently.
“I was so focused on following the instructions exactly that I slipped up and destroyed a third of my net worth in a single transaction,” Riley tweeted after the incident.
Riley attempted to package his punk #685 NFT as an ERC-721 token, to create a new digital token that proved he owned CryptoPunk #685. ONE CryptoPunkease of use, liquidity and availability are improved by wrapping it.
But by entering the wrong address, CryptoPunk #685 is now lost forever in circulation. He planned to take a loan against NFT.
Riley tweeted “I followed step 4 to ‘write contract’ and ‘register proxy’, then step 5 to copy the proxy address. I should have known something was wrong and realized this was a mistake but I didn’t . It wasn’t until I went to stamp my wrapped punk that the astronomical gas gave it away.”
The unlucky NFT trader bought CryptoPunk #685 NFT last week and wanted to hold it for at least a decade along with his BAYC NFT #586. But things don’t always go the way we want.
While many of the community members felt for Riley and comforted him, few others were brutal, saying that the NFT trader made a stupid mistake that cost him a third of his net worth.
Riley added “this is truly a devastating mistake for me. But I did this myself and it’s nobody’s fault but my own. Both the beauty and the curse of self-preservation.”
The good news is that user @olliesblog revived Punk 685 as an Ordinal inscription. Now the NFT lives forever in the Bitcoin blockchain. The Ordinals protocol is the new raging sensation that recently, BAYC #1626 owns burnt NFT to exchange its existence for Bitcoin via the Ordinals protocol.
Meanwhile, the user guide for wrapping NFT was updated since the accidental burn. Many people called out the site for its confusing guide that cost Riley a lot of time. There are currently talks about how to prevent such things from happening again in the NFT sector.
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