THEis one of the most prestigious NFT collections in the world. A collection of 10,000 NFTs, each representing a monkey with different traits and visual attributes, Jimmy Fallon, Steph Curry and Post Malone are among its star-studded owners. The entry price is currently 52 ethers, or $210,000.
That’s why it’s so heartbreaking to see someone accidentally sold their Bored Ape NFT for $3,066.
Unusual trades are often a funny trade sign, as in the case of the person who spent $530 million to buy an NFT. In Saturday’s case, the cause was a simple and devastating “fat finger error.” This is when people trade online for the wrong thing or the wrong amount. Here the owner, real name Max or username maxnaut, meant to list your Bored Ape for 75 ether, or about $300,000. Instead, he accidentally listed it by 0.75. One hundredth of the intended price.
It was purchased instantly. The buyer paid an extra $34,000 to speed up the transaction, ensuring no one could buy it before them. Bored Ape was then promptly listed for $248,000. The transaction appears to have been made by a bot, which can be coded to immediately purchase NFTs listed below a certain price on behalf of their owners in order to take advantage of these exact situations.
“How did that happen? A lapse in concentration, I think,” Max told me. “I list a lot of items every day and I just wasn’t paying attention properly. I immediately saw the error when my finger clicked on the mouse, but a bot sent a transaction over 8 eth. [$34,000] of gas fees so it was instantly cut off before I could hit cancel and just like that $250k is gone.”
“And here within the beauty of Blockchain you can see that it is honest and ruthless,” he added.
Fat finger trades happen sporadically in traditional finance – like the Japanese trader who nearly bought 57% of Toyota stock in 2014 – but most financial institutions will stop such transactions if alerted quickly enough. Since cryptocurrencies and NFTs are designed to be decentralized, you basically have to rely on the goodwill of the buyer to reverse the transaction.
Fat finger mistakes in cryptocurrency trading have made a lot of headlines in recent years. In 2019, the company behind Tether, a cryptocurrency pegged to the US dollar, nearly doubled its own coin supply when it accidentally created $5 billion in new coins. In March, BlockFi intended to send 700 Gemini Dollars to a set of customers, worth approximately $1 each, but mistakenly sent millions of dollars in bitcoin instead. Last month, a company mistakenly paid a $24 million fee on a $100,000 transaction.
Similar incidents are increasingly being seen in NFTs now that many collections have accumulated in market value over the past year. Last month, someone tried to sell a CryptoPunk NFT for $19 million but accidentally listed it for $19,000. In August, someone fat listed his Bored Ape for $26,000, a mistake someone else immediately capitalized on. The original owner offered the buyer $50,000 to return the Bored Ape – but the opportunistic buyer instead sold it for the market price of $150,000.
“The industry is so new that bad things are going to happen, whether it’s your fault or technology’s fault,” Max said. “Once you’re no longer in control of the outcome, forget it and move on.”
Bored Ape Yacht Club launched in April, with 10,000 NFTs being sold for 0.08 ether each – around $190 at the time. While NFTs are often associated with individual pieces of digital art, collections such as the Bored Ape Yacht Club, whichusing them as profile pictures on social media are becoming more and more prevalent. The Bored Ape Yacht Club has become the second largest NFT collection in the world, second only to , which was released in 2017 and is considered the “original” NFT collection.