Unfortunately for Brandon Riley, he made an irreversible mistake that ended up costing him dearly. On March 25, he shared a tweet explaining how he had accidentally destroyed his CryptoPunk #685 NFT he had purchased for 77 ETH – worth around $129,437 at the time of Etherscan. His mistake occurred while he was attempting to wrap his NFT, a process that would allow him to list the digital collectible on Ethereum marketplaces such as OpenSea or Rarible.
Riley was following a step-by-step guide to complete the transaction, but instead of sending the NFT to the intended address, he sent it to a burn address. This type of virtual wallet doesn’t have a private key, meaning no one can access it, and is typically used to permanently destroy tokens and create scarcity. As a result, Riley lost his CryptoPunk NFT forever.
‘A devastating mistake’
Due to the irreversibility of crypto and NFT transactions, Riley’s NFT cannot be retrieved and is no longer available for ownership or trade. He stated on Twitter that this mistake resulted in a loss of one-third of his net worth.
Riley acknowledged that the mistake made was solely their own, stating that it was truly devastating.
Riley has reached out to Yuga Labs, the proprietors of the Bored Ape Yacht Club NFT collection who obtained the intellectual property rights to CryptoPunks in March 2022, to inquire about acquiring an earlier version of his CryptoPunk #685 via Twitter.
Riley’s Cryptopunk NFT cannot be accessed, but it has been transformed into a Bitcoin ordinal that exists on the Bitcoin blockchain, according to his Twitter statement.
Tips for avoiding costly errors in cryptocurrency investments.
Riley advises other NFT owners to exercise caution and take more preventative measures than he did.
It is important to conduct extensive research and evaluation of any software program utilized for storing or transferring digital funds or collectibles.
Coinbase recommends utilizing a password manager to aid in remembering multiple complex passwords necessary for accessing a digital wallet. Additionally, implementing two-factor authentication can provide an added layer of security by requiring a secondary method of identity verification.