Crypto News

“Accidental NFT Burn Costs CryptoPunk Trader $129K – What You Need to Know”

Published

8 months ago

March 26, 2023

An NFT trader was devastated Friday to discover that a CryptoPunk he purchased for 77 Ethereum went up in smoke after he accidentally sent the pricy piece of digital art to a burn address. Burn addresses, which are digital wallets that don’t have a private key, are one-way gateways that can only receive assets like cryptocurrencies and NFTs. As a result, the NFT was permanently removed from circulation, preventing it from ever being traded or owned again. Brandon Riley, who purchased CryptoPunk #685 two weeks ago, said he made an error when attempting to wrap the NFT to take a loan against it on Twitter. He told Decrypt he planned on posting CryptoPunk #685 to NFTfi.com, where he could earn a yield of around 7% per year. CryptoPunk #685 was worth approximately $129,000 in Ethereum when it was acquired by Riley, according to the Ethereum block explorer Etherscan. Originally created in 2017, CryptoPunks is widely viewed as a “blue chip” collection, on par with the likes of Yuga Labs’ Bored Ape Yacht Club. With a market capitalization of over $1 billion, the cheapest CryptoPunk is worth just over $109,000, according to NFT Price Floor. However, CryptoPunks were created before ERC-721 was established as a token standard for NFTs, making them incompatible with some marketplaces and applications designed for decentralized finance—such as NFTfi.com. Using a guide he found online, Riley tried to wrap his punk as an ERC-721 token, creating a new digital token that proved he owned CryptoPunk #685 but would be compatible with NFTfi.com. But by inputting the wrong address, CryptoPunk #685 is now forever gone. Riley’s unfavorable situation is indicative of issues that many face in the digital assets industry due to the often complex and irreversible nature of transactions. And because there are no financial intermediaries involved, there’s nothing Riley can do to get his lost CryptoPunk back, which he described as “both the beauty and the curse of self-custody.” One Twitter user named NFToga pointed out that the guide used by Riley has since been updated, including language that specifically warns people not to send CryptoPunks to wallets formatted as burn addresses. Asking for some form of a reprieve, Riley asked Yuga Labs—which purchased the IP to CryptoPunks from Larva Labs last year—if he could buy the v1 version of CryptoPunk #685. CryptoPunks v2 was released after a bug was found in the original collection’s smart contract. Riley said that he has not yet from Yuga Labs after tagging them in his posts on Twitter, and Yuga Labs did not immediately respond to requests for comment from Decrypt. Sometimes, NFTs aren’t burned by accident, but rather as a way of making a statement. Last month, Jason Williams burned BAYC # 1626—worth $169,000 at the time—to symbolically shift the asset’s underlying network from Ethereum to Bitcoin in the form of an Inscription made through Ordinals.

This unfortunate incident serves as a reminder to people dealing in digital assets to be extra cautious when making transactions. NFT traders should always double-check addresses to make sure their valuable pieces of art do not end up in permanent burn addresses. Additionally, guides should be regularly updated to warn users of the risks associated with certain types of transactions. #NFT #CryptoPunk #BurnAddress #Crypto #DigitalAssets

You can read more about this topic here: Decrypt: NFT Trader Accidentally Burns $129K CryptoPunk

The post “Accidental NFT Burn Costs CryptoPunk Trader $129K – What You Need to Know” first appeared on Byte Syze Crypto.

Crypto News

Bitcoin Rockets to Record High of $41,000 – $166 Million in Shorts Liquidated

Published

2 hours ago

December 4, 2023

Bitcoin’s upward trajectory continued on Monday, with the cryptocurrency surging past $41,700 hours after hitting $40,000 on Sunday afternoon. Per data from CoinGecko, the price of Bitcoin currently stands at just over $41,600, up 5.6% on the day and over 11% on the week. Just one year ago, Bitcoin’s price stood at just under $17,000, with the cryptocurrency surging by over 144% in the past year. Bitcoin’s rally has seen its price reach levels not seen since April 2022, helping to boost the market cap of all cryptocurrencies to $1.61 trillion, up 3.6% in the past 24 hours. According to data from CoinGlass, Bitcoin’s price surge has seen over $166 million in short derivatives positions liquidated in the last 24 hours.

Bitcoin’s price movement over the weekend appears to be linked to renewed enthusiasm over the possible approval of a spot Bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC). In recent weeks, the regulator has met with applicants including Grayscale and BlackRock to discuss amendments to their applications, while analysts have zeroed in on three key dates in January when a window would open for the SEC to approve multiple applications simultaneously. Bloomberg Intelligence analysts have put the odds of the SEC approving a Bitcoin ETF in January at 90%, prompting renewed optimism among everyone from Coinbase CEO Brian Armstrong to JP Morgan analysts. Of course, the SEC could yet deny any or all of the pending applications; to date it has rejected every single spot Bitcoin ETF application to cross its desk.

This article outlines the recent surge in Bitcoin’s price and the possible approval of a spot Bitcoin ETF by the US SEC. Analysts have put the odds of the SEC approving a Bitcoin ETF in January at 90%, and the news has generated renewed optimism among many. However, the SEC could yet deny any or all of the pending applications, as it has done in the past. #Bitcoin #ETF #Cryptocurrency #SEC #Investment

You can read more about this topic here: Decrypt: Bitcoin Blasts Past $41,000 as $166 Million in Shorts Liquidated

The post Bitcoin Rockets to Record High of $41,000 – $166 Million in Shorts Liquidated first appeared on Byte Syze Crypto.

Crypto News

French Court Rules Platypus Hackers Not Guilty of $8.5M Heist

Published

7 hours ago

December 4, 2023

A French court cleared two brothers of criminal charges stemming from February’s $8.5 million Platypus Finance hack. Mohammed M., 22, orchestrated the complex flash loan attack and exploited a smart contract vulnerability to drain funds from the Avalanche-based automated market maker (AMM) project. However, the court ruled Mohammed’s unauthorized yet publicly accessible use of smart contracts did not constitute illegal computer system intrusion under criminal statutes. Furthermore, utilizing Platypus’s flawed emergency withdrawal mechanism to siphon tokens failed to pass legal tests for fraud in the judges’ view. The prosecution’s failure serves as a showcase for DeFi criminal enforcement’s emerging jurisdiction. Although defrauded protocols can still file a lawsuit for damages in a civil court, given the novelty and worldwide reach of decentralized networks, more clarification is needed under criminal regulations. This is good news for those involved, as they were able to avoid criminal charges. However, it highlights the difficulties enforcement agencies face in regulating decentralized networks. #CryptoCrime #DeFi #DecentralizedNetworks #SmartContracts

You can read more about this topic here: Watcher Guru: French Court Acquits Platypus Hackers of $8.5M Heist

The post French Court Rules Platypus Hackers Not Guilty of $8.5M Heist first appeared on Byte Syze Crypto.

Crypto News

ing the Implications Cryptocurrency Giant Bitcoin Reaches Record High of $40,000 – What Does it Mean?

Published

13 hours ago

December 3, 2023

Bitcoin’s recent rebound continued over the weekend, with the cryptocurrency passing the $40,000 mark on Sunday afternoon. It is the first time since April 2022 that Bitcoin has seen such a high price, representing a 15% climb over the past 30 days and more than doubling since this time last year. The increasing price reflects optimism surrounding the potential approval of a Bitcoin spot exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC). Ethereum is also trading above $2,200 today for the first time since May 2022, and various NFT projects have seen rising prices this weekend. This is good news for cryptocurrency investors, as the market is showing continued signs of growth. #Bitcoin #Ethereum #Cryptocurrency #NFTs

You can read more about this topic here: Decrypt: Bitcoin Hits $40,000 for First Time Since April 2022

The post ing the Implications

Cryptocurrency Giant Bitcoin Reaches Record High of $40,000 – What Does it Mean? first appeared on Byte Syze Crypto.