A Bug on NFT Marketplace Blur Resulted in 70 ETH Loss for Trader
A user on the Non-Fungible Token (NFT) marketplace Blur lost 70 ETH after a bug in the platform’s new bidding system caused him to overbid on an Art Gobbler NFT.
Bug or Error?
The trader, Keungz, who is also the creator of the Keungz Genesis NFT collection, tweeted about the incident. He explained that when a user inputs 0.1 ETH but enters a decimal point without a zero, it automatically becomes 1 ETH. While the trader claims that the issue stemmed from a platform bug, the marketplace expressed a different view.
Blur responded to the thread, stating that its policy is to refund users for platform bugs but not for user errors. However, in this instance, the platform offered a 50% refund to Keungz. Blur launched on October 19 and positions itself as an NFT marketplace for professional traders. The platform is backed by Paradigm and offers a range of features specifically designed for experienced traders, such as high liquidity and low transaction fees.
The collection at hand, Art Gobblers, is an Ethereum-based collection of 2,319 NFTs depicting cartoon monsters. The collection had a total trading volume of 11,548 ETH at the time of the incident.
Mistakes are Bound to Happen
This incident highlights the challenges that NFT marketplaces face when it comes to user experience and the potential for bugs and errors. While the NFT market has exploded in popularity, with a wide range of high-profile projects and investors getting involved, the technology is still relatively new and untested. As such, there is a high potential for errors and mistakes, which can have significant financial consequences for traders and investors.
It is also worth noting that Blur’s policy of not offering refunds for user errors may be a source of contention for some traders. In a market as volatile and fast-moving as the NFT space, mistakes and errors are inevitable, and users may feel that they should be protected against the consequences of these errors. It will be interesting to see how Blur and other NFT marketplaces address this issue going forward.
A similar error has also led to an NFT owner mistakenly selling a $300,000 Bored Ape Yacht Club NFT for $30,000 on Opensea. The owner of the bored ape #3547 had intended to list the NFT for 75 Ether (ETH) but accidentally listed it for 0.75 ETH instead. By the time he realized the mistake, the NFT had already been purchased by a bot, which paid a notably high transaction fee. The new owner subsequently put the collectible up for sale at a price of nearly $250,000.
Overall, this incident serves as a reminder of the potential risks and challenges associated with the NFT market and the need for platforms to prioritize user experience and safety to protect traders and investors. While the potential of the NFT market is undeniable, it is crucial that platforms take steps to minimize the potential for mistakes and errors in order to build trust and confidence in the market.