It is estimated that a total of 42 NFTs were consumed as a result of the system problem during the course of 30 transactions.
User-owned NFTs worth 28.44 Ether (ETH), or approximately $100,000 at the time of writing, have been reported to have been wiped due to a glitch on OpenSea’s marketplace, according to reports.
According to Nick Johnson, main creator of the Ethereum Name Service, or ENS, who purportedly lost an NFT that was related to the first ENS, rilxxlir.eth, the information was made public by Johnson on his personal blog.
The Ethereum Name System (ENS) is a name system that allows users to store text-based content as a non-fungible token (NFT) on the Ethereum blockchain.
Whilst transferring the NFT from an ENS account to his own personal account, Johnson became aware that the token had been sent to what looked to be a burn account, which he identified as follows:
‘nick.eth’ was the username I used to log onto OpenSea and send funds. Within moments, the transaction was completed! rilxxlir.eth was transferred to the address 0x0000…0000edd899b in the address space. “Wait, what?” you might wonder.
The initial conversation Johnson had with OpenSea revealed that the NFT-burning issue had been introduced on the platform’s transfer page, affecting all ERC721 transfers to ENS names for the previous 24 hours, according to Johnson.
The following is what OpenSea had to say:
“We’ve reached out to the tiny number of customers who were affected by the incident yesterday, in which sending an NFT to an ENS name resulted in the NFT being sent to the encoded version of the literal text (for example, “OS.eth”), rather than the corresponding address.” This was an issue that we created and remedied on the same day.”
Johnson was able to track down at least 30 transactions from 21 accounts in which NFTs were lost as a result of a system flaw that Johnson discovered. According to the available information, a total of 42 NFTs were destroyed.
Johnson asserted that the lost ENS token had no monetary worth, but that it was prized because it was the first ENS name to be registered in the world.
Cointelegraph reached out to OpenSea for comment, but did not receive a response right away.
OpenSea became the first cryptocurrency unicorn in August after earning $100 million in a fundraising round led by Andreessen Horowitz. At the time, OpenSea’s crew of 37 workers was said to have handled 98 percent of the platform’s NFT volume, according to reports.
Referrals who were successful in their hiring were given a one-time payment of one Ethereum (ETH). As the company’s head of product, Nate Chastain, explained, “we are attempting to supplement our hiring process with some guerrilla recruiting due to the pressing need for manpower.”
According to a recent analysis published by Cointelegraph, OpenSea is currently the highest consumer of Ethereum network fees.
