TLDR
- An unexpected twist: ZachXBT’s NFT documenting his investigation suddenly became a tradable token.
- The token quickly soared to a $15M market capitalization on the Base network.
- Without duly notifying users, the Zora protocol converted NFTs into ERC-20 tokens.
- Initially, the NFT served as a free documentation piece for a massive $243M theft probe.
- While the token's value once hit $4,300, its market cap has since settled back at $4M.
In an unexpected turn of events, a Intended to simply document a $243 million theft case, a basic NFT investigation report metamorphosed into a $15 million tradeable asset. on the Base network.
Crafted by the esteemed ZachXBT, this document was aimed at preserving his investigative research into a $243 million theft linked to Genesis.
Zora’s intervention changed everything when ZachXBT’s document was NFT’d. Zora protocol in August Unbeknownst to him, Zora’s tech automatically shifted the NFTs into ERC-20 tokens, making them tradeable items on decentralized exchanges like Uniswap.
ZachXBT expressed his shock, clarifying that Zora's system gave no hint of an ERC-20 token being produced along with the NFT release.
He explained, 'The current Zora interface doesn’t indicate to creators that launching an ERC-20 token is inevitable post an open edition NFT mint.'
Under its ERC20z framework, Zora minted around 3,500 tokens within the Base network. This allows NFTs to be enveloped into ERC-20 tokens, akin to other tokenization platforms.
On Zora’s UI, creators receive no warning that an ERC-20 token will emerge at the close of the NFT mint, as seen in the screenshots I’ve shared.
If the tagging persists, I’ll introduce more endless mints to dilute the piece’s value.
The unexpected token launch stirred the market. It leaped from almost zero to $4,300 per token, hitting a $15M market cap, though it now has decreased to $4M. pic.twitter.com/RwLJVrv3RT
— ZachXBT (@zachxbt) November 5, 2024
As per recent DEX Screener insights. ZachXBT's primary goal was never the creation of a trade-focused asset. His intention was solely to archive his findings on the blockchain, mimicking earlier articles stored on Mirror.
Displeased by the token's speculative trading, ZachXBT remarked, 'Continued mentionings will lead me to mint unlimited versions without closure and replace the Zora imagery with something blank.'
The scenario underscores the automated nature of blockchain systems and how they might give rise to unforeseen events.
Zora’s function designed to enhance utility inadvertently developed a financial resource from what was envisioned to be enlightening content.
Within the larger framework of ZachXBT’s investigation of a major $243 million scandal involving a Genesis-related creditor.
Originally envisioned to be a free-access NFT detailing the vast $243M heist.
The NFT's transition into a token means it’s being actively traded, displaying its unexpected journey into a speculative market asset.
This event opposes the creator's ambition to provide open, easily accessible accounts of his blockchain investigations.
On the Base network, where the event unfolded, this token emerged as a notable trading entity, capturing the attention of crypto enthusiasts.
Delving into the tech, Zora’s ERC20z setup automatically crafts wrapped NFT versions.
This setup enhances trading options, proving that creators unaware of its application could face unforeseen outcomes.
Despite trading on various decentralized exchanges, the token's valuation has slipped below its apex. Its market cap rests at $4 million now.
ZachXBT maintains his focus on blockchain safety and crime investigation, with this event being an unexpected byproduct of his reporting.
