2023-06-22 06:40:02
News JVTech He destroys a collector’s item worth more than €85,000 to transfer it to Bitcoin
Published on 06/22/2023 at 08:40
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The frenzy around the new Ordinals protocol on Bitcoin sometimes encourages some users to take high-risk bets. This is the case of a collector who recently decided to destroy a work costing several thousand euros to send it to the network of the first cryptocurrency.
He takes the risk of losing €85,000 by “migrating” his NFT to Bitcoin
Since the beginning of the year, it has been possible to link images to Satoshis (the smallest unit of Bitcoin) thanks to the Ordinals protocol. Most consider these new digital artifacts to be NFTs on the bitcoin network.
It is clear that this new possibility is the subject of significant enthusiasm since more than 12 million registrations have taken place on the network. Some even push the experience even further by migrating their precious Ethereum NFT to this new Bitcoin protocol.
It is in any case the maneuver of a certain Nathan Stein, a user who recently purchased a CryptoPunk to try the experience for himself.
As a reminder, CryptoPunks is a collection of iconic NFTs launched in 2017 on the Ethereum network, the second crypto in the ranking. This one consists of 10,000 NFTs of pixelated avatars with a punk look. These NFTs have widely gained interest over the years and are now snapping up for a small fortune.
Nathan Stein also paid 54.49 ETH, or €85,000, to obtain CryptoPunk #8611. Only on June 18, the developer made the decision to sacrifice it a few minutes after its purchase.
Indeed, the new CryptoPunk holder has made the decision to send it to a burn address, which compromises access to the NFT permanently. Behind this bold initiative, the goal was to issue the burnt NFT on Bitcoin’s ordinal protocol. In other words, this manipulation was the price to pay to migrate his NFT from the Ethereum network to that of Bitcoin.
Today, CryptoPunk #8611 is now considered Ordinals listing 12,456,749. It is also the first CryptoPunk to leave Ethereum for Bitcoin.
54.49 ETH was spent on June 18 to acquire CryptoPunks 8611, then the owner decided to send it to a burn address…????
… in order to revive it in the Bitcoin inscription 12,456,749.
CryptoPunks 8611 is the very first CryptoPunks Ethereum migrated… pic.twitter.com/ATqWDkOiLt
— Goku ???? (@Crypto__Goku) June 19, 2023
An increasingly frequent phenomenon that is causing controversy…
In February, Jason Williams, the owner of NFT 1626 from the prestigious Bored Ape Yacht Club collection, also migrated a high-value NFT to this new protocol. This experiment had generated a lot of mixed reactions in the crypto community.
To do this, he had also been forced to destroy his NFT worth €158,000 using Teleburn: a feature of the Ordinals protocol that burns Ethereum NFTs to make a copy appear on the Bitcoin blockchain.
These new and growing initiatives raise questions about the limit of claiming rights around transferred NFTs.
Last February, Greg Solano, the founder of Yuga Labs (the studio behind Cryptopunks and Bored Ape Yacht Club), had issued a rather mixed report on these new practices.
According to him, if an NFT is burned on Ethereum, then its owner definitively renounces to exploit his property rights. Consequently, he will not be able to use his copy of the Bitcoin to claim the various advantages offered by the NFT.
To advance his arguments, Greg Solano explains that the NFT technically still exists, but that it is simply no longer accessible since the address on which it is stored has no owner.
For these reasons, the Ordinals protocol on the Bitcoin network is the subject of debate as to the use of NFTs and their limits. Despite the strong positions of several studios and collectors, some may reconsider their opinion due to the increasing number of “transfers” on the Bitcoin network.
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About NFTs
What is an NFT?
An NFT is the abbreviation of Non Fungible Token or non-fungible token in French. NFTs are cryptographic tokens issued on a blockchain.
By exploiting this technology at the genesis of cryptocurrencies, NFTs inscribe inviolable properties in this virtual register. As a result, NFTs are true attestations of digital ownership.
Is an NFT necessarily an image?
A distinction must be made between an NFT and the object associated with it. Indeed, the non-fungible token is above all a virtual property certificate and not the digital file as such. An NFT is usually associated with a photo or video, but it can also take the form of text, music or any other digital or physical format.
What is an NFT used for?
NFTs are generally used to assert property rights online. Thus, the owner of a token of a virtual work can collect royalties, ensure respect for the intellectual property of his digital object, etc.
This feature has notably enabled the NFT to shine in art by creating value and rarity in digital images available on the web. Also, beyond art, this technology offers multiple uses in several sectors such as in video games, the traceability of a product, etc.
How is the value of an NFT defined?
These tokens are non-fungible, i.e. they have a unique value unlike cryptos, which are fungible (1 bitcoin = 1 bitcoin).
The price of an NFT is therefore arbitrarily set by the owner of the token. This price is usually in cryptocurrency, most of the time in Ether (ETH).
How to buy and sell NFTs?
NFTs are generally bought or resold on trading platforms such as Opensea or Foundation.
What is an NFT mint?
The “Mint” or strike in French, is the initial sale process of a token. To permanently become part of the blockchain ledger, these new tokens must be mint. By this action, the user comes to complete a transaction with his fees to see his token appear first hand on the blockchain.
What is an NFT airdrop?
An airdrop refers to the free distribution of an NFT to a crypto wallet address.
How to store an NFT?
To store an NFT, you must have a wallet / crypto wallet. The most popular are Metamask or Trust Wallet.
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