RIP WRAPPED PUNK 685 | NFT CULTURE | NFT News | Web3 culture
In a world where digital assets are becoming increasingly valuable, the accidental burning of CryptoPunk 685 has made headlines. This rare and sought-after digital collectible was burned during a failed wrapping attempt, leaving the buyer, vitalityrowth.eth, with a significant loss.
News of the accidental burn was first reported by Twitter users @seanbonner and @punk9059, and was later confirmed through an Etherscan transaction. The incident has sent shockwaves through the CryptoPunk community, where these digital collectibles are highly prized.
CryptoPunks are a series of 10,000 unique digital collectibles created by Larva Labs in 2017. Each CryptoPunk has a distinct design and rarity level, with some being more valuable than others. The highest priced CryptoPunk sold to date is Punk 7804, which sold for 4,200 ETH (over $7 million USD) in March 2021.
CryptoPunks have gained popularity among art collectors, investors and cryptocurrency enthusiasts, and some have even been displayed in museums. Those who own a CryptoPunk are often considered to be true OGs (original gangsters) in the cryptocurrency space, which adds to their prestige and value.
Today I accidentally burned one @cryptopunksnfts trying to wrap punk 685.
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. @yugalabs please sell me @v1punks NOK 685 as a consolation. 🙏🏼 pic.twitter.com/jHoTGvlc7j
— Brandon Riley (@vitalitygrowth) March 25, 2023
The accidental burning of CryptoPunk 685 is a reminder of the risks that come with investing in digital assets. Despite their increasing popularity and value, these assets are still subject to human error and technical problems.
The incident has also sparked a debate around the use of wrapper services, which allow users to convert their Ethereum-based assets into other tokens that can be used on other blockchains. Wrapper services can be a convenient way to transfer assets between different blockchains, but they also come with their own risks.
In the case of CryptoPunk 685, the wrapping attempt failed and resulted in the accidental burning of the asset. This serves as a warning to those considering using wrapping services, highlighting the importance of researching thoroughly and understanding the risks involved.
Ultimately, accidentally burning the CryptoPunk 685 is a loss not only to the buyer, but to the CryptoPunk community as a whole. It serves as a reminder of the inherent risk of investing in digital assets, and the importance of taking precautions to protect these valuable and rare collectibles.
Why wrap a punk in the first place?
Wrapping CryptoPunks has become a popular trend in the community due to potential benefits. Once a CryptoPunk is wrapped, it is essentially converted into a standard ERC721 non-fungible token, which allows it to be used on other blockchain platforms beyond Ethereum.
Wrapping a CryptoPunk can potentially increase its utility, liquidity and availability. By wrapping a CryptoPunk, owners can use it in decentralized finance (DeFi) applications, trade it on other marketplaces, or even use it in blockchain-based gaming. This could expand the potential audience for CryptoPunk and increase its value in the long run.
However, as stated on the wrapper interface website launched in September 2020, wrapping a CryptoPunk should not be taken lightly. The process involves interacting with smart contracts via etherscan.io, which can be complicated and carries risks. Every transaction on the Ethereum blockchain is irreversible, so owners must research and understand the process thoroughly before proceeding.
To wrap a CryptoPunk, owners must follow specific instructions that involve obtaining a proxy wallet, sending transactions via the WrappedPunk contract, and transferring the CryptoPunk to the proxy wallet before minting it as a WrappedPunk. These steps require technical knowledge and familiarity with interacting with the Ethereum blockchain.
In conclusion, wrapping a CryptoPunk can potentially increase its value and utility, but owners must understand the risks and complexities involved in the process. It is important to research and seek expert guidance before proceeding to avoid irreversible damage to the digital asset.
