• Last month, a crypto investor accidentally destroyed their $129K CryptoPunk NFT.
• Here are some best practices to protect your NFTs from technical mishaps while using crypto.
• Brandon Riley, the investor in question, urged others to be more careful than him when self-custodying their own crypto.
NFT Collector Destroys $129K CryptoPunk
Last month a crypto Twitter influencer accidentally destroyed their $129K CryptoPunk NFT. Brandon Riley tweeted about his mistake and warned others to be careful with self-custody of their crypto assets.
What is Wrapping?
Wrapping extends the smart contract functionality of the NFT so that it can be listed on Ethereum NFT markets such as OpenSea and Rarible. It allows users to trade the tokens using cryptocurrency or fiat currency.
How Did This Happen?
Riley reported on March 24 that he had „accidentally burned“ a non-fungible token, CryptoPunk #685 while trying to wrap it for trading purposes. Unfortunately, he entered an incorrect address while following the instructions and irretrievably sent his NFT to nowhere, destroying a third of his net worth from investing in cryptocurrency.
Protecting Your Assets
Here are some best practices for protecting your assets from technical mishaps:
• Back up all your wallet information regularly
• Double check address before sending any transactions
• Use hardware wallets instead of software wallets if you have large amounts of funds
• Keep track of changes in blockchain technology and keep your systems updated regularly
• Use two-factor authentication whenever possible
Crypto investors should exercise extreme caution when dealing with cryptocurrencies and take steps to safeguard their investments against accidental losses due to technical errors or other causes beyond their control.