thecoinrepublic.com
- NFT Trader Brandon Riley unintentionally burned CryptoPunk #6851
- A burned NFT is irretrievably destroyed and cannot be exchanged or reaccessed.
One of the first and most well-known non-fungible token (NFT) initiatives on the Ethereum network is CryptoPunks. Each CryptoPunk is a distinct 8-bit image of a pixelated character with a unique hairstyle, accessories, and sometimes even uncommon traits like being an alien or a zombie.
If the CryptoPunk was burned, the owner purposefully destroyed the token by sending it to a public Ethereum address, making it permanently inaccessible. A burned CryptoPunk can never be recovered or traded again.
Accidentally Burned Cryptopunk?
The NFT was permanently destroyed on March 24 when NFT trader Brandon Riley, also known as @vitalitygrowth on Twitter, “unintentionally” burned CryptoPunk #685.
To effectively remove a digital asset from circulation, it must be sent to a wallet address from which it can never be reclaimed.
Burn addresses, unencrypted digital wallets, are one-way gateways that can only accept digital assets like cryptocurrencies and NFTs. As a result, the NFT was never exchanged or held again, and it was permanently taken out of circulation.
Brandon Riley, who bought CryptoPunk #685 two weeks ago, said on Twitter that he erred in trying to wrap the NFT to secure a loan against it. He informed Decrypt that he intended to publish CryptoPunk #685 on NFTfi.com to make a dividend of about 7% annually.
He further stated, “I was not wrapping this punk to sell it to Blur, it was to be my forever punk.” This particular statement portrays how the burning of the crypto punk was an unfortunate accident and that he was wrapping it up because he needed to buy some liquidity from it.
What Led To The Unfortunate Incident?
Riley seems to have been following instructions from an online manual on how to wrap the NFT as an ERC-721 token and make it work with NFTfi, a liquidity mechanism for NFTs.
This was necessary because some marketplaces and defi applications do not support the CryptoPunks NFT collection. After all, it was developed before ERC-721 became the accepted industry standard for NFTs.
Riley ultimately entered the incorrect wallet address by mistake, and the NFT was instantly and irretrievably lost.
Riley’s unfortunate circumstance is representative of problems that many in the digital assets business have because of the frequently intricate and irreversible nature of transactions. Riley referred to this as “both the beauty and the curse of self-custody” because there are no financial middlemen, and nothing Riley can do will bring his lost CryptoPunk back.
NFToga, a Twitter user, noted that Riley’s reference material has since been amended with the text directly cautioning readers not to send CryptoPunks to wallets configured as burn addresses.
Riley replied that he did the first with his address, but when he got to step 5, the burn address was listed under “9.porxyinfo” The only thing he regretted was doing this independently instead of doing it with an expert’s help or guidance.
What Should You Do If You Accidentally Burn CryptoPunk?
Unfortunately, there is no way to reverse the transaction or retrieve the token if you unintentionally burn a CryptoPunk or any other NFT. An NFT that has been burned is irretrievably destroyed and cannot be exchanged or reaccessed.
Although burning a valuable NFT can be a costly error, it doesn’t necessarily mean the end of your NFT trading journey. It’s important to remember that the market determines an NFT’s value. Adding to your collection and buying new NFTs, you can still participate in the NFT market.
It’s crucial to take care if you have a priceless NFT collection to avoid future mishaps like burning tokens. This entails exercising caution while conducting transactions, verifying information, and keeping your NFTs in private, safe wallets.
When trading NFTs, it’s a good idea to do your research and only deal with trusted platforms and people with a history of reliable transactions. You may reduce the possibility of mishaps and safeguard your NFT investments by adopting these safeguards.