In July last year, a somewhat clumsy developer locked away their ETH for eternity, for no apparent reason. In a rather unamusing magic trick, an address known by the pseudonym ENS "nd4.eth" recently made 2500 ETH disappear, equivalent to $5.6 million at the current ether rate. The motivations behind this sleight of hand remain a mystery.
On July 26, 2023, our artist intended to transfer their 2,500 ETH. However, in what might have been an accidental (or perhaps not so accidental) move, they sent their ETH into the void by omitting to input a valid receiving address, opting for a "null" address, thereby vaporising their treasure. This blunder cost them a staggering $5.6 million. The crypto community, always vigilant, quickly took an interest in this incident, pondering over this error.
Unlike a valid address, a null address doesn't correspond to any active account or wallet. Funds sent to such an address become inaccessible to anyone, unable to be claimed or spent.
The reduction in Ether supply resulting from this mistake might be viewed favourably by some market participants. Indeed, this error would decrease the available Ether quantity, making the token rarer.
It's noteworthy that, according to Look on-chain, the wallet responsible for the loss of 2,500 ETH wasn't held by a novice. Our whale owned a total of over 3,000 ETH.
This conundrum highlights the importance of caution in crypto transactions. As always in such cases, it's wise to conduct a test transaction before engaging in a major operation. Although this incurs extra fees, this small precaution could save you from much more substantial losses.
