Whoopsies: Collector Accidentally Burns NFT Worth $123K

This week on the whoopsies, an NFT collector accidentally burned a CryptoPunk NFT they had just purchased for a whopping 77 ETH ($123,434).

NFT collector and investor Brandon Riley was attempting to “wrap” the NFT but ended up sending it to a burn address, which effectively destroyed the NFT. The accident disseminated a third of Riley’s net worth.

Wrapping is the process of putting the original asset in a wrapper pegged to the value of another token. It’s a sort of adapter that bridges one blockchain to another. Burning, meanwhile, is the process of removing tokens, typically coins, from circulation. It permanently puts the asset in an address outside the network where it can no longer be used.

Riley thought he was following wrapping directions exactly, and has said that since he isn’t a developer and is “not at all familiar with these contracts,” he should’ve had another set of eyes to check what he was doing.

The burned NFT is part of the CryptoPunks project, which is considered to be one of the most popular NFT collections. It features 10,000 8-bit characters and was released in 2017. The collection has some of the world’s most valuable NFTs — the most expensive one, CryptoPunk #5822, sold for $23.7 million in February 2022.


Information for this briefing was found via Twitter, Binance, Investopedia, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Goliath Resources Hits 10.60 g/t Gold Over 22.82 Metres, Highest Grade Results In Third Distinct Rock Package At Surebet Discovery

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

Recommended

ESGold Outlines $24.3 Million NPV For Tailings Reprocessing Project

First Majestic Encounters 711 g/t Silver Equivalent Over 8.0 Metres In Ongoing Exploration At Los Gatos

Related News

Court Rules DraftKings NFTs Are Securities, Denies Motion To Dismiss

The U.S. District Court for the District of Massachusetts denied DraftKings Inc’s (NASDAQ: DKNG) motion...

Thursday, July 4, 2024, 09:39:00 AM

Coinbase Halts NFT Transfers on iOS Wallets, Blames Apple’s 30% App Tax

Coinbase (NASDAQ: COIN) said it has halted all NFT transfers for customers using its iOS...

Friday, December 2, 2022, 07:29:00 AM

‘Mutant Ape Planet’ Creator Arrested: Is This The Beginning Of The NFT Crackdown?

Aurelien Michel, a French national living in the United Arab Emirates (UAE) and creator of...

Friday, January 6, 2023, 12:46:00 PM

Clout That (Soulja Boy): The Rapper’s Many Crypto Projects (And Scams)

DeAndre Cortez Way, more popularly known as Soulja Boy, rose to popularity with his self...

Thursday, April 20, 2023, 12:47:00 PM

Legal Drama Forces DraftKings to Pull the Plug on NFT Business

DraftKings (NASDAQ: DKNG) has abruptly shut down its non-fungible token business, effective immediately “due to...

Wednesday, July 31, 2024, 01:03:29 PM