Similar to a sad story in a soap opera, an NFT collector suffered the unfortunate fate of being careless in destroying Rp. 2 billion worth of CryptoPunk token assets, so they were destroyed forever.
Launching from Cointelegraph, while going through an unusual NFT wrapping process, the collector named Riley accidentally sent assets to the burn address, permanently removing the NFT from circulation.
Nonfungible tokens (NFT) from the CryptoPunks collection worth 77 Ether are instead sent to the burn address to be permanently destroyed. “Now, an NFT collector named Brandon Riley intends to borrow some money to buy another NFT,” wrote Cointelegraph.
Riley added CryptoPunk #685 to his collection on March 13 by paying 77 ETH, hoping to keep it for the long haul. As a seasoned investor, Riley knows the importance of getting a new NFT right before the crypto market enters a new bull run.
As a result, he decided to borrow money against CryptoPunk #685 using a popular technique known as wrapping. While going through the unusual NFT wrapping process, Riley accidentally sent the asset to a burning address, which permanently removed the NFT from circulation, as shown below.
Riley’s NFT burning address
“I was told to follow directions exactly, so I did,” explains Riley, but in the process, he ends up losing 77 ETH, which is worth US$135,372.16.
“I didn’t wrap up this punk to sell it on Blur. It became my “punk forever”. The numbers are exactly the opposite of my monkey. I just wrapped it up because I needed to borrow a bit of liquidity from him,” he added.
While members of Crypto Twitter believed that NFT collectors must have deep pockets, Riley debunked the rumors by revealing that he had purchased CryptoPunk #685 through borrowed money. “I shouldn’t have tried this myself I guess,” admits Riley of the experience.
On the other hand, Crypto Twitter also blames a confusing user interface and complicated instructions for investors’ losses. As a result, the community unanimously agreed on the need to change the front-end process for the crypto ecosystem.
NFT laundering trades increased 126 percent in February, confirms the CoinGecko report.
The top six NFT marketplaces are Magic Eden, OpenSea, Blur, X2Y2, CryptoPunks and LooksRare. X2Y2, Blur and LooksRare saw increases in wash trading for the fourth straight month, with total volume of US$580 million.
As Cointelegraph previously reported, the problem of wash trading stems from a lack of clear regulations.
