NFT investor Brandon Riley has lost $135K by burning his crypto punk NFT when trying to get a loan by collateralizing it. He used the wrong method permanently removing his NFT from circulation.
‘Hard-to-use’ UI costs an investor a $135K NFT
Brandon has gone on Twitter to mourn his massive five-figure loss earlier today, claiming that his process of borrowing money has cost him 77 ETH. Riley had purchased the crypto punk NFT alongside another BAYC NFT earlier this month and said he hoped to hold them through to the next decade.
In a tweet, he said he believes he has the stomach to ride the bull and bear runs and can manage to watch the assets get a 90%+ downturn. He added that he believes the assets will most likely have appreciated by far in the next decade.
Now, his dream of holding his beloved punk has gone in flames. Riley is a seasoned NFT collector who knows the need to buy NFTs before a bull market. However, he needed some cash and opted to get a loan against his punk NFT.
Some Twitter users asked him what happened, and he explained that the unfamiliar wrapping of the NFT cost him. He accidentally sent that asset to a burn wallet after completing the process.
Riley explained that he was not wrapping the asset to sell it on Blur but wanted to make it his “forever punk.” He added that the asset was beloved to him as its number was the exact reverse of his BAYC, and he was wrapping it only because he needed to draw some liquidity from it.
Some onlookers believed Riley had “deep pockets,” which he denied by claiming that he bought the asset with borrowed money. While concluding and conceding the mistake, Riles noted, “I just shouldn’t have attempted this on my own, I guess,” which should be a lesson for everyone.