CryptoPunk #2359 Sold for Significantly Less Due to User Error

CryptoPunk #2359 was mistakenly sold at a significantly lower price than its worth as shared by Quit (@0xQuit) on X.

The mistake, which occurred on the official CryptoPunks platform, was made by Wizard of Soho who was unaware that his purchase had already been completed.

Whilst this incident introduces the potential risks of trading on the platform, it has also prompted the team to make changes aimed at preventing similar errors in the future.

What happened and how?

The sequence of events began when an anonymous user placed small bids, often worth fractions of a cent, on several CryptoPunks that had no existing bids. Though these bids were minuscule, they were enough to make the bidder the highest offer on those punks. This technique, known as “dusting,” can cause confusion for potential buyers who may not realise that a punk they are interested in purchasing already has an active bid.

Wizard of Soho, having purchased CryptoPunk #2359, confirmed the transaction and waited for the punk to transfer to his account. However, after the purchase was complete, the page updated to reflect that he had become the new owner. Not recognising the update, the buyer mistakenly clicked the “Accept Bid” button, assuming that further actions were required to complete the purchase. This inadvertently triggered the sale of the punk to the original bidder, who had placed the low-value bid.

Despite finalising the transaction to remove the proceeds from the sale, Wiz did not realise that the punk had already been transferred and was sold for far less than it had originally been purchased for.

How to prevent the similar errors?

This incident has prompted discussions about the challenges of using the CryptoPunks platform and how users can avoid making similar mistakes. Below are the suggested steps for CryptoPunk holders to follow in order to protect their assets:

1. Confirm Ownership Before Taking Further Action: After purchasing a CryptoPunk, users should double-check that the page reflects their ownership before attempting to take any additional steps. It is important to recognise that no further action may be needed after confirming the transaction.
2. Be Aware of Low Bids: Even very small bids can make someone the highest offer on a punk, and this can cause confusion. Buyers should verify the status of the punk before completing a purchase.
3. Carefully Review Transactions: Before accepting a bid or finalising a sale, it is crucial to carefully review all transaction details. This includes understanding that accepting a bid will result in the transfer of ownership, particularly if the bid is below the floor price.

To help address such issues, the team has recently introduced platform updates. Notably, all bids below 1 ETH are now hidden by default, reducing the risk of low-value bids influencing transactions. In addition, clearer warnings have been added to modals to prevent users from mistakenly selling their CryptoPunks.