Thirty transactions from 21 distinct accounts were affected by the NFT marketplace problem, which was rectified.
Nick Johnson, the Ethereum Name Server’s main developer, recently revealed a problem on the NFT marketplace OpenSea that caused him and other traders to lose roughly $100,000 in NFTs to burn addresses. The issue has now been fixed, but the harm has been done.
What went wrong?
Johnson revealed the flaw in a tweet Friday, saying that he’d “accidently burnt the first ENS name ever registered.”
It all started when he tried to move the ENS to one of his accounts, which was named rilxxlir.eth. He had intended to provide ‘rilxxlir’ as an NFT through PaperclipDAO, but he couldn’t since the name was registered to an ENS account rather than a personal account. Thus he couldn’t do so until the ENS was transferred.
Johnson tried it with OpenSea, and that’s when he found the flaw. Instead of being delivered to his address, the ENS was sent to a mystery burn location, where it was never seen again.
In response, the ENS developer issued a “frantic” appeal to OpenSea:
“It transpires I was the first and apparently only victim of a bug introduced to their transfer page in the past 24 hours, which affected all ERC721 transfers to ENS names. Ownership of rilxxlir.eth is now permanently burned.”
It is impossible to recover the name since the address to which it was sent at random is no longer in use. Furthermore, despite Johnson’s assertion that the problem was repaired before he published his tweet, he later discovered that 32 other transactions involving 21 individuals and 42 exchanged NFTs, were also impacted. The total value of all NFTs lost was 28.44 ETH, which was over $100 000 at the time.
NFTs are as popular as they’ve ever been
According to the data, the average value of each NFT set lost in OpenSea’s issue was over $2300. NFTs have recently grown in popularity and set several price records. A $19 million auction on a group of 107 bored Yacht monkeys on Monday.
However, they may be a little overdone. Recently, there has been much talk about how NFTs are driving up costs on the Ethereum network. Vitalik Buterin has advocated on the Ethereum network the construction of a layer two solution to tackle this problem, in which NFTs would be better suited to being exchanged.