Investor Accidentally Burned a 77 Ether NFT CryptoPunk

During the wrapping process, which he had no experience with, the NFT investor mistakenly entered a burn address, permanently deleting the NFT.

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An NFT worth 77 ETH from the CryptoPunks collection was sent to an address used for burning, resulting in its irreversible deletion. The collector was trying to purchase another NFT using the wrapping method.

Brandon Riley, an NFT collector, decided on March 13 to expand his collection with CryptoPunk #685, worth 77 ETH, with the intention of holding it long term.

Riley wanted to hold the NFT for long-term investment reasons, planning to sell it when the next bull market rolled around. He therefore decided to borrow money against CryptoPunk #685 using the popular wrapping technique. Unfortunately, Riley had no experience with this process and accidentally managed to send it to an address used for burning, thereby taking it out of circulation.

"I was told to follow the instructions exactly, so I did," Riley explained, following the 135,000 USD loss.  

"I wasn't wrapping on this punk to sell to Blur. It was supposed to be my 'forever punk'. The number is the exact opposite of my monkey. I was only wrapping because I needed to borrow some liquidity from it." Said Riley.

Crypto Twitter members thought that the NFT collector must have "deep pockets," but Riley refuted the claims, explaining that he was purchasing CryptoPunk #685 using borrowed money.

"I probably shouldn't have tried to do it myself," Riley said, following the bitter experience. However, he also accused Crypto Twitter of having a confusing user interface and complicated instructions. This led the community to the unanimous result that front-end processes for crypto ecosystems need to be redesigned.

Source: cointelegraph.com