The incident occurred due to inattention while trying to “wrap” the token

​NFT collector accidentally burns CryptoPunk #685 worth $129 000

27.03.2023 - 12:45

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4 min

What’s new? On March 25, NFT collector Brandon Riley accidentally sent his token #685 from the CryptoPunks collection to a burning address, losing a third of his fortune as a result. As a consolation, the collector asked Yuga Labs to sell him token #685 of the original collection created in 2017. Riley shared more about the incident on Twitter.

CryptoPunks, one of the first collections of non-fungible tokens on the Ethereum blockchain, was launched in June 2017 by Larva Labs and purchased by Yuga Labs in 2022. It consists of 10 000 NFTs in the form of 24×24 pixel images of people.

How was the token destroyed? Riley bought the asset two weeks ago for 77 ETH (about $129 000 at the time of purchase) and planned to use it as collateral on the NFTfi.com platform to generate passive income. The loss of the NFT occurred when the user attempted to “wrap” the token. Incorrectly following the instructions resulted in the NFT being sent to a proxy wallet from which it cannot be retrieved.

“This is truly a devastating mistake for me. But I did this myself, and it is no one’s fault but my own,” Riley said.
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A Twitter user under the nickname OLLIESBLOG decided to help the collector and gave him a similar NFT issued on the Bitcoin blockchain using the Ordinals protocol.

In May 2022, the owner of CryptoPunk #273 lost $1,06 million on its resale. The collector bought the token for 265 ETH ($1,2 million at the time of purchase), and seven months later sold it for 55 ETH ($132 660), nine times cheaper than its original cost.

That same month, Ape #6462 from Yuga Labs’ Bored Ape Yacht Club (BAYC) collection sold for just $200, 99,9% below the tokens’ minimum cost.

On March 6, Yuga Labs earned more than $16 million at the auction to sell bitcoin NFT TwelveFold. And on March 23, the daily volume of fees for the issue of bitcoin NFT based on the Ordinals protocol reached a record 9,28 BTC ($257 460).

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