Man Loses Over 2 Crore Rupees Due To NFT: Be Careful While Dealing With NFT

NFT is currently the latest fad in the blockchain world. From individual creators to big studios, everyone is into creating and selling NFTs. Some are selling like hotcakes, while some aren't. If you have heard about NFT or non-fungible tokens, then you might have also heard a few success stories on how an individual made a lot of money in a short time by trading NFTs.

This story is quite the opposite, in fact, this is about how someone lost a lot of money due to a small error. Bored Ape NFT is currently one of the most valuable non-fungible tokens with an average value of $300,000 or 75 Etheriums or around Rs. 2.28 crores, which is a lot of money for digital art.

The previous owner of the Bored Ape NFT planned to make some bucks by selling the high-value NFT for 75 Etherium. To his bad luck, he entered 0.75 Etherium instead of 75 as the value of the token, which brought down the price of the Bored Ape NFT from $300,000 to just $3000, which is just around one percent of its actual value.

Another user just grabbed this opportunity and initiated the purchase and pair 0.75 Etherium. To fasten the transaction, he even paid an additional $34,000 gas fee (payments made by users to compensate the computing performance needed to validate an Etherium based transaction), which successfully completed the transaction. Later, the latest owner of Bored Ape NFT listed it for $248,000 and sold it off to another user in just a couple of minutes.

This Is Why NFT Or Crypto Is Different From Conventional Banking

In a conventional banking system, a user will have an option to stall an ongoing transaction or even reverse it in some cases. However, when it comes to crypto or NFT, once the transaction is done there is nothing one can do to reverse it, as it uses decentralized technology. These are one-way transactions and there is no way to reverse these transactions once verified.

In this case, the user should have been a bit more careful before listing, as a small mistake has caused a massive loss. Bored Ape Yacht Club with 10,000 NFTs is currently the most valuable NFT collection, which contains apes in different traits and attributes.

In fact, you need to spend at least $210,000 or 52 Etherium to buy the cheapest NFT from the Bored Ape Yacht Club, except for the one, which was listed just for $3400. There is a lot of demand for these NFTs and the price of these NFTs is expected to grow exponentially over the next few days.

Unlike a conventional stock market, there is no value associated with these NFTs and the prices of these NFTs fluctuate purely based on human emotions. Hence, investing in an NFT is more of a gamble than anything, if it gets trending you will multiply your money in no time, else you will have an image that anyone can download for free from the internet.

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