One of the most popular types of NFTs are CryptoPunks, which are a collection of 10,000 unique 8-bit characters that were released in 2017. Each CryptoPunk has its own distinct attributes, and some are more rare and valuable than others. CryptoPunks have become highly sought-after by collectors and investors, with some selling for millions of dollars.

Brandon Riley, an NFT collector and investor, recently acquired CryptoPunk #685 for 77 ETH (approximately $135,000 USD) with the intention of holding onto it for the long term. However, as an experienced investor, Riley also recognized the importance of procuring new NFTs before the crypto market takes off into a new bull market. He wanted to use his CryptoPunk as collateral to borrow money and invest in new NFTs.

To do this, Riley attempted to wrap his CryptoPunk using a technique known as tokenization. Tokenization involves locking an NFT in a smart contract and creating a new token that represents the value of the NFT. This token can then be used as collateral for loans or other financial transactions.

However, in the process of tokenizing his CryptoPunk, Riley made a fatal mistake. Instead of sending the NFT to the smart contract, he accidentally sent it to a burn address, which is a wallet that permanently deletes any assets sent to it. The CryptoPunk was gone, forever erased from circulation.

Riley was devastated by his mistake. He had not intended to sell or trade the CryptoPunk, and he had lost a valuable asset in the process. However, he also recognized the importance of using the incident as a learning opportunity for others in the NFT community. In an interview with CoinDesk, Riley stated, “I want people to learn from my mistake, to be more careful when dealing with NFTs, and to think twice before taking any action.”

The accidental destruction of CryptoPunk #685 serves as a cautionary tale for anyone involved in the NFT market. While these digital assets can be lucrative and exciting to collect and invest in, they also come with significant risks. Managing NFTs requires attention to detail, technical knowledge, and an understanding of the potential consequences of any action taken. As the NFT market continues to grow and evolve, it is crucial for collectors and investors to approach it with caution and care.

The claims were reported by Reuters on March 24, citing anonymous “people familiar with the matter,” who alleged that Animoca initially halved its $2 billion metaverse fund target in January and recently cut it another 20% to $800 million. The fund was announced in November 2022 to allocate capital to mid-to-late-stage startups with a metaverse focus, and Animoca co-founder and chairman Yat Siu outlined at the time that the fund target was between $1 billion and $2 billion, depending on how much capital was raised.

While Animoca acknowledged that the banking collapses in the United States have had an impact on available venture capital, the firm stressed that the final amount raised for the fund has yet to be determined. “When the raise is concluded, we will inform the market with the appropriate details, including the final size of this fund,” the firm stated.

Regarding the company’s valuation, Animoca asserted that the figures reported by Reuters and “two other” unnamed sources were inaccurate. The firm argues that its total market cap is not fully represented by the data from PrimaryMarkets, where its shares have traded since being delisted from the Australian Stock Exchange in March 2020.

Animoca terminated its arrangement with PrimaryMarkets in the second half of 2020, but the platform continued to trade its shares. The firm stated that “trading volume is far too low to provide the price accuracy you would find on an actual primary market.”

While the claims made in the Reuters report remain unverified, they highlight the impact of recent events on the crypto market and fundraising efforts. Animoca’s stance suggests that the firm is still confident in its ability to raise capital for its metaverse fund and that its valuation is higher than what has been reported. However, it remains to be seen how successful the fundraising efforts will be and whether Animoca will meet its original target for the fund.