Man ‘Accidentally’ Burns NFT Worth Rs 1 Crore, Ends Up Losing A Third Of His Wealth | Cryptocurrency News
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Explaining the debacle, the CyptoPunks NFT owner says something went wrong in trying to create a proxy wallet
‘CyptoPunks #685’, a non-fungible token collection on the Ethereum blockchain, was accidentally destroyed worth Rs 1 crore.
A Canada-based man accidentally burned ‘CyptoPunks #685’, a non-fungible token collection on the Ethereum blockchain, worth Rs 1 crore. It destroyed a third of his net worth in a single transaction.
How Did This happen?
The man, Brandon Riley, shared the debacle on micro-blogging site Twitter. He said, “Something went wrong in trying to create a proxy wallet.”
He explained:
Following instructions on the website, Step 1. I accessed the contract on Etherscan.
Step 2. I entered my own wallet address and attempted to get my proxy wallet address.
Step 3 reads: “Skip to step 2 if the address IS NOT 0x00…0000″
I understood that to mean that because the address was exactly that, that it must be correct and I could move onto the next step. I thought that was the proxy address I was supposed to use.
I followed step 4 to ‘write contract’ and ‘register proxy’ then Step 5 to copy proxy address…
I should have known something was wrong and realized that this was a mistake, but I didn’t. It wasn’t until I went to mint my wrapped punk, that the astronomical gas gave it away.
Riley said he is not a dev, not at all familiar with these contracts, and doesn’t really understand how wrapped punks work.
“This is truly a devastating mistake for me.💔 But I did this myself, and it is no one’s fault but my own. Both the beauty and the curse of self-custody. Stay safe out there everyone, and please be way more careful than I was. Thank you to so many of you for the kind words,” Riley said on Twitter.
What Are NFTs?
NFTs are tokens based on blockchain. However, they are different from cryptocurrencies. Cryptocurrencies from the same blockchain are interchangeable (fungible), but two NFTs each are unique and are not interchangeable (non-fungible).
The NFTs can be traded and exchanged for cryptocurrencies, money or other NFTs. The value completely depends upon the buyer and seller’s understanding. For example, a picture of hills can be converted into an NFT, and that NFT can be sold in millions or can be tagged as worthless by two different buyers.
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Haris is Deputy News Editor (Business) at News18.com. He writes on various issues related to markets, economy and companies.
Haris is Deputy News Editor (Business) at News18.com. He writes on various issues related to markets, economy and companies.
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