Home Enthusiast Blockchain enthusiast reportedly lost $500,000 sending WETH to contract address

Blockchain enthusiast reportedly lost $500,000 sending WETH to contract address

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In a now-deleted profile, an anonymous Reddit user allegedly lost nearly $500,000 on Sunday after sending wrapped Ether (WETH) directly into a WETH wrapping smart contract. WETH originated as a way for Ether (ETH) to comply with the ERC-20 token standard so it could be traded directly with altcoins minted on the Ethereum blockchain.

To wrap Ether, users first send ETH to the WETH smart contract address and receive an equivalent token in return. However, to unwrap WETH, users must either trade for ETH on a decentralized exchange like Uniswap (UNI) or invoke the withdrawal function in the WETH smart contract. Instead, the anonymous Reddit user forwarded the WETH directly to the WETH smart contract address in hopes of receiving the ETH back. Unfortunately for the user, this process is the equivalent of a “token burning” and resulted in an irreversible loss of the trader’s crypto.

While the user’s identity is no longer available on Reddit, the transaction still appears on Etherscan, showing that 195.2 WETH ($501,358) was sent to the WETH smart contract at the time the contract was published and therefore lost forever. Most Reddit members were sympathetic to the trader, with u/0150r writing:

“Losing half a million dollars worth of crypto by mistake is something that needs to be fixed before crypto goes mainstream. When it’s so easy to lose it all, there’s no way your grandma would. use.”

However, others have pointed out that the original poster should have done a lot more to research the technology before using it, with the writing u/jadecrystal:

“No, you don’t need to design the technology, but if you don’t have a basic understanding of…a microwave oven, starter, engine and car steering column…or addresses crypto and public key blockchain, that’s what happens.”