How The Biggest NFT Blunders Happened

Please fol­low and like us:
Pin Share

It’s a no-brain­er that the NFT fever has gripped the world, espe­cial­ly in the past cou­ple of years, has­n’t it? 

From celebri­ties enter­ing the NFT space, and glob­al brands launch­ing their NFTs to numer­ous NFT enthu­si­asts around the world earn­ing hand­some bucks, it’s all hap­pen­ing with NFTs.

In fact, NFTs have even helped a lot of com­mon peo­ple around the world turn around their des­tinies and made them even mil­lion­aires, irre­spec­tive of their age and profession.

But there’s a flip side too.

Every now and then, NFT blun­ders are quick to take the spot­light. Whether it’s an alleged scam or mis­take on the part of the NFT hold­er, the loss often turns out to be as high as millions!

While scams are some­thing which are most­ly not in our con­trol unless it’s a mis­take from the NFT holder’s end that paved the way for the scam, a lot of errors, mis­takes or any oth­er act of care­less­ness are often the cause of many NFT blun­ders and losses.

In the recent past itself, some instances are indica­tive of ‘hon­est mis­takes’ by the NFT hold­ers

NFTshut­ter­stock

Also Read: This Indone­sian Student’s ‘$3 NFT Self­ies’ Are Now Worth Millions!

Cryptocurrency Mixup

One of the recent and biggest pieces of evi­dence of how the tini­est mis­takes can land you into loss­es or almost wipe out your poten­tial prof­its, is this case. In March 2022an NFT col­lec­tor had mis­tak­en­ly sold a ‘rock’ draw­ing worth $1 mil­lion for next to noth­ing ($0.0012), due to cryp­to cur­ren­cy mix­up

He just erro­neous­ly list­ed it for 444 wei instead of 444 eth. So, in just one click, his entire net worth of ~$1 mil­lion dol­lars was gone! For the unini­ti­at­ed, wei is the low­est denom­i­na­tion of the Ethereum cryp­tocur­ren­cy. 1 Ethereum=1000000000000000000 wei.

So, a cryp­tocur­ren­cy mix­up is among the rea­sons you can com­mit NFT blun­ders when buy­ing or sell­ing it.

The Fat Finger Error

Anoth­er NFT blun­der is the ‘fat fin­ger error’.

In Decem­ber 2021, a trad­er report­ed­ly sold a Bored Ape NFT for almost $3,000 instead of $300,000 due to ‘fat-fin­ger’ mistake.

A fat-fin­ger error is where a trad­er places the wrong bet on a stock or oth­er finan­cial asset because of a typ­ing mistake. 

The trad­er, in this case, iden­ti­fied only as Max or “max­naut” online, want­ed to list his NFT for 75 ether, or about $300,000. But a “lapse of con­cen­tra­tion” caused him to make an error and acci­den­tal­ly type in 0.75 ether as the list­ing price!

With­in the blink of an eye, a buy­er jumped in and even paid $34,000 in gas fees so that their trans­ac­tion would be processed faster than any­body else’s! 

For the unini­ti­at­ed, gas fees are pay­ments made by users to com­pen­sate for the com­put­ing ener­gy required to process and val­i­date trans­ac­tions on the Ethereum blockchain. 

Indeed, these above-men­tioned exam­ples are some of the instances which should be tak­en as learn­ings for NFT enthusiasts. 

So, whether you are buy­ing or sell­ing NFTs, make sure you are atten­tive to even the most minute detail about the NFT, trans­ac­tion, cryp­tocur­ren­cy, plat­form etc.

After all, it takes just one tiny mis­take or error to wipe out thou­sands or even mil­lions of dol­lars and land you into deep loss­es when trad­ing NFTs! 

Also Read: World’s First NFT Restau­rant To Open In New York In 2023

For the lat­est and inter­est­ing finan­cial news, keep read­ing Indi­a­times Worth. Click here.

Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published. Required fields are marked *