This article comes fromdecrypt, original author: André Beganski

Odaily Translator |

On March 25, NFT investor Brandon Riley accidentally discovered that the CryptoPunk he bought at a price of 77 ETH was wiped out after he accidentally sent it to the destruction address. The destruction address is a digital wallet without a private key, which is equivalent to a "one-way gateway". It can only receive cryptocurrencies and NFTs but not send them. It aims to permanently remove these assets from circulation and prevent them from being owned or traded again.

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The ins and outs of this "accident"

Brandon Riley, who just bought CryptoPunk #685 two weeks ago, said frankly on social media that he initially hoped to encapsulate the NFT and send it to the NFTfi platform to obtain an annual income of about 7%, but due to a series of "misoperations", he lost forever This classic NFT, let us sort out the whole process below, and let other NFT investors be a warning——

Brandon Riley had trouble trying to create a proxy wallet, following the instructions on the NFTfi website:

Step 1 requires access to the contract on Etherscan.

Step 2 Enter your own wallet address and try to get the proxy wallet address.

Next, Brandon Riley followed step 4 to "write the contract" and "register agent", and then followed step 5 to copy the above address that is not the proxy address...Here, if you are careful, you should know that if you use "0x 00 ... 0000" address and realized it was a mistake, but he seemed a little careless not to see the problem. Next, Brandon Riley went to mint and encapsulate the CryptoPunk NFT, until an expensive gas fee appeared and he discovered the problem, but by then it was too late.

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Lessons learned from this "accident"

There is no doubt that this "accident" cost Brandon Riley a lot, and according to Ethereum block explorer Etherscan, CryptoPunk #685 was worth about $129,000 when it was acquired by Riley. Moreover, this incident can only be his own fault.

But for those crypto "novice" who have no development experience, they are not familiar with the contract, nor do they understand the working principle of the packaged NFT. Due to the complexity and irreversibility of encrypted transactions, the digital asset industry will certainly face problems similar to Brandon Riley's when processing transactions, plus without the involvement of financial intermediaries, Brandon Riley can't do anything to get back his lost CryptoPunk.