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Lost in wrapping: NFT investor’s CryptoPunk burnt

Lost in wrapping NFT investor's CryptoPunk burnt

Riley accidentally sent the asset to a burn address while going through the unfamiliar process of wrapping NFTs, removing the NFT from circulation.

A CryptoPunks NFT worth 77 Ether was sent to a burn address to be destroyed forever. But the collector only wanted to use it as collateral to borrow money to buy another NFT.

Brandon Riley paid 77 ETH on March 13 to add CryptoPunk #685 to his NFT collection. He plans to keep it for a long time.

Riley had been investing for a long time, so he knew how important it was to buy new NFTs right before the crypto markets started a new boom market. So, he chose to use a well-known technique called “wrapping” to borrow money against CryptoPunk #685.

During the strange process of “wrapping” NFTs, Riley sent the asset to a “burn” address, which took the NFT out of circulation.

A CoinGecko report revealed that NFT wash trades went up by 126% in February. Wash trading for X2Y2, Blur, and LooksRare increased for the fourth consecutive month, with a total volume of $580 million.

About Tina

Tina concentrates on all matters related to NFT and Web3. Tina uses social media to spot NFT trends and report unique news.

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