- NFT trader, Brandon Riley, accidentally sent his CryptoPunk #685 worth $129k to a burn address, rendering it permanently inaccessible and untradeable.
- CryptoPunks were created before the ERC-721 token standard, making them incompatible with the decentralized finance platform NFTfi.com, where Riley sought to secure a loan.
- This incident highlights the irreversible nature of digital asset transactions and the challenges of managing self-custody assets.
The Tale Behind the Punk’s Destruction
Brandon Riley — who purchased CryptoPunk #685 two weeks prior in the hope of securing a loan and financial gain — made a mistake while attempting to wrap the NFT for liquidity purposes on NFTfi.com.
Unfortunately, Yuga Labs created CryptoPunks before the ERC-721 token standard for NFTs came to light, making the assets incompatible with decentralized platforms, including Riley’s chosen one, NFTfi.com.
Using an online guide, Riley attempted to wrap his Punk as an ERC-721 token. However, he accidentally sent the blue-chip asset to a burn address without a private key. As a result, rendering from circulation.
Riley turned to Twitter to express his misfortune and ask Yuga Labs for help:
Many Punks sell for six figures or more. However, CryptoPunk #685 is worth around $129,000 in Ethereum. Although it’s one of the cheaper collectibles, it’s still a large sum of money for anyone to lose, nonetheless.
This event highlights issues with the irreversible nature of NFTs and other transactions for digital assets. Although, in rare instances, NFT enthusiasts have burned such assets for symbolic reasons. For example, Jason Williams burned BAYC #1626, valued at $169,000, to transition the asset’s underlying network from Ethereum to Bitcoin through an Ordinals Inscription.
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