An anonymous crypto investor lost almost $300,000 on the sale of an NFT token. How did this happen?
The Bored Ape Yacht Club (BAYC) is one of the best known and most expensive NFT collections to date. In particular, the average price of the cheapest pieces in the collection reaches tens of thousands of dollars. That said, a few days ago a deal was made with BAYC #3547 for “only” $3015. It turns out that the seller of this NFT made a very unfortunate mistake, which cost him almost 295 thousand dollars in lost profit. Let us tell you more about the situation.
It should be noted that the NFT tokens from the Bored Ape Yacht Club series are indeed in great demand. This has been boosted by celebrity activity, among other things. For example, in the last video Post Malone together with The Weeknd was the first to buy NFT tokens from the mentioned collection.
In addition, in mid-November famous presenter Jimmy Fallon used an NFT token from the series for his Twitter avatar. It looked like this.
Jimmy Fallon’s avatar from the BAYC collection
Meanwhile, the NFT concept itself is becoming more popular and finding new uses for it. For example, the day before the platform Invisible College announced its desire to create educational courses about blockchain, decentralization and other components of the Web 3.0 concept. And tuition fees will need to be paid through NFT. Read more about the topic in a separate article.
How to lose money on cryptocurrencies
A token holder nicknamed Max bought the token on May 30 for 1 ETH, or $2,290 at the coin’s exchange rate at the time. On Saturday, the crypto-enthusiast wanted to put NFT up for sale on the OpenSea trading platform at a price of 75 ETH, which is about $300,000. However, Max made a mistake in the price – instead of 75 he accidentally indicated 0.75 ETH and in addition did not notice it.
BAYC #3547.
I found a buyer for BAYC #3547 almost immediately, and he got it for 8.75 ETH. He paid 8 ETH extra to get his transaction to the Etherium block as fast as possible.
It should be noted that interactions with NFT tokens do come at a cost. In particular, back in the first half of April 2021, we interacted with a promising project at the time called Polkamon and spent a lot of money. Back then it cost $42 to mint - i.e. create - an ERC721 token, with ETH valued at $2,000 at the time, and the network was not as busy as it is today.
However, such a large commission was not necessary anyway. Most likely, the user already knew that he could increase his initial investment amount many times over in a couple of hours, so he took the risk. In addition eight is often considered a lucky number, and this could also have played a role in the choice of the commission.
Max has already been interviewed about it. Here’s one of his quotes published by the news outlet Decrypt.
How did this happen? I guess I just lost my concentration at one point. Every day I put up a huge number of items for sale and this time I just wasn’t paying attention. I noticed the mistake when the auction was already confirmed, but the buyer’s bot almost instantly sent the transaction with 8 ETH commission before I clicked to cancel the sale. Thus I lost over $250,000.
Which means from the buyer's perspective the investment and the high value of the commissions really paid off. Especially since the market price of the token was 75 ether.
Screenshot of the transaction on the Etherium blockchain
This week was not without other news directly related to BAYC tokens. NFT collection development studio Yuga Labs announced the launch of a play-to-earn game based on BAYC in partnership with startup Animoca Brands. Animoca is the publisher of The Sandbox meta-universe and also invests in a wide range of P2E games.
As a reminder, Play-to-Earn (P2E) is a new trend that combines the benefits of the video game industry and blockchain. In P2E games, gamers can earn cryptocurrencies and NFT tokens through their achievements in the virtual gaming space.
NFT tokens from the Bored Ape Yacht Club range
A game based on BAYC will be launched in the second quarter of 2022. So far, Yuga Labs has not shared any specific details about the announcement. The question remains – will it be a game for everyone, or will only “digital monkey” owners have access to it?
We believe that no one is safe from such a problem - especially in such a new and decentralized niche, where there is no way to return the asset forcibly. Therefore, investors are left to be as careful as possible when dealing with tokens. There is no other way out here.
Follow developments and new NFT trends in our Millionaire Crypto Chat.
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