The collector attempted to use the CryptoPunk 685 artwork as collateral for a loan; however, he destroyed it due to an oversight.
A non-fungible token (NFT) collector destroyed one of these digital works valued at $135,000 while trying to use it as collateral to obtain a loan, reports the specialized cryptocurrency outlet Cointelegraph.
According to reports, Brandon Riley attempted to wrap his CryptoPunk using a technique known as tokenization, which involves locking an NFT into a smart contract and creating a new token that can be used as collateral to apply for loans or conduct other financial transactions.
However, while going through the process, unknown to him, Riley accidentally sent the CryptoPunk 685 artwork to a ‘burn address’, permanently erasing the NFT from circulation. “I was so focused on following instructions to the letter that I slipped up, destroying a third of my net worth in a single transaction,” commented On twitter.
“I just shouldn’t have tried it on my own, I guess,” added the collector, lamenting the destruction of the NFT, which he claimed acquired it after taking out a cryptocurrency loan.
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Source: RT
