Due to user error, CryptoPunk #2359 sells for significantly less

CryptoPunk #2359 was mistakenly sold for much less than the price shared by Quit (@0xQuit) on X.

This error occurred on the official CryptoPunks platform and was committed by the Wizard of Soho, who was unaware that his purchase had been completed.

While the incident raised potential risks for trading on the platform, it also prompted the team to make changes to prevent similar errors in the future.

What happened and how?

The chain of events began when an anonymous user placed a small bid (usually worth less than a cent) on several CryptoPunks that had no existing bids. Although these bids are minuscule, they are enough to encourage bidders to bid the highest price for those punks. This technique, known as “dusting,” can cause confusion for potential buyers, who may not realize that there are already active bids on the punk they’re interested in purchasing.

Wizard of Soho purchased CryptoPunk #2359, confirmed the transaction and waited for the punk to be transferred to his account. However, after the purchase was completed, the page updated to show that he had become the new owner. The buyer was unaware of the update and mistakenly clicked the “Accept Bid” button, thinking further action was required to complete the purchase. This inadvertently triggered the sale of Punk to the original bidder who originally made the bid.

Despite completing the deal to cancel the proceeds of the sale, Wiz was unaware that the punk had been transferred and sold for far less than the original purchase price.

How to avoid similar errors from happening?

The incident sparked discussion about the challenges of using the CryptoPunks platform and how users can avoid making similar mistakes. The following are recommended steps that CryptoPunk holders should follow to protect their assets:

1. Confirm ownership before taking further action: After purchasing CryptoPunk, users should carefully check that the page reflects their ownership before attempting to take any other steps. It is important to realize that no further action may be required after a transaction is confirmed.
2. Watch out for low bids: Even a small bid could lead to someone placing the highest bid on a punk, which could cause confusion. Buyers should verify the condition of the Punk before completing their purchase.
3. Review the transaction carefully: Before accepting an offer or completing a sale, it’s critical to carefully review all transaction details. This includes understanding that accepting a bid will result in a transfer of ownership, especially if the bid is below the reserve price.

To help resolve such issues, the team recently rolled out a platform update. Notably, all bids below 1 ETH are now hidden by default, reducing the risk of low-value bids affecting transactions. Additionally, clearer warnings have been added to the modal to prevent users from mistakenly selling their CryptoPunk.