Investor loses $ 500,000 by sending WETH to the smart contract address
Although the smart contract transforms the ETH sent to the address into WETH, the reverse operation is not envisaged: a user thus loses almost 200 ETH
• In a post currently no longer available, an anonymous Reddit user allegedly admitted losing nearly $ 500,000 after sending wrapped Ether (WETH) directly to a WETH wrapped smart contract. WETH was developed as a means of conforming Ether (ETH) to the ERC-20 token standard, so that it can be traded directly with the altcoins minted on the Ethereum blockchain.
To “wrap” Ether, users must send ETH to the address of the WETH smart contract, receiving an equivalent token in exchange. However, to do the opposite operation and get their Ether back, users must exchange WETHs on a decentralized exchange such as Uniswap (UNI), or use the withdrawal function in the WETH smart contract. In the present case, the anonymous user of Reddit would have sent the WETHs directly to the address of the WETH smart contract, in the hope of receiving his ETH back. Unfortunately, this process is equivalent to a “token burn”, leading to an irreversible loss of the trader’s cryptocurrencies.
Although the user is no longer available on Reddit, the transaction is obviously present on Etherscan: at the time of publication, 195.2 WETH ($ 501,358) were sent to the WETH smart contract and, consequently, should be considered lost forever. Most of the Reddit members have been sympathetic to the trader, for example, u / 0150r said:
“Losing half a million dollars in crypto by mistake is a matter to be addressed before cryptocurrencies go mainstream. When it is so easy to lose everything, there is no chance that your grandmother will use them “.
However, others pointed out that the trader should have gone deeper into the technology before using it: u / jade crystal commented:
“No, you don’t need to know how to develop the technology, but if you don’t have a basic knowledge of … a microwave oven, a car starter, the engine, the steering column … or the crypto addresses to public keys and the blockchain, this is what happens “.
ARTICLE LOSS 500