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In a now-deleted profile, an anonymous Reddit user allegedly lost nearly $500,000 on Sunday. Send Wrapped Ether (WETH) Direct access to WETH wrapping smart contracts. WETH exists as a way of Ether (Ethereum) to comply with the ERC-20 token standard so that it can be traded directly with altcoins minted on the Ethereum blockchain.
To wrap Ether, users first send ETH to a WETH smart contract address and receive an equivalent token in return. However, to unlock WETH, users must either exchange ETH on a decentralized exchange such as Uniswap (Unite) or call the withdrawal function in the WETH smart contract. Instead, anonymous Reddit users send WETH directly back to the WETH smart contract address in hopes of getting the ETH back. Unfortunately for users, this process amounts to “token burning” and results in the irreversible loss of the trader’s cryptocurrency.
While the user’s identity is no longer available on Reddit, the transaction remains Appear On Etherscan, it is shown that 195.2 WETH ($501,358) was sent to the WETH smart contract when the contract was published, thus lost forever. Most Reddit members sympathize with traders, with u/0150r writing:
“Wrongly losing $500,000 worth of cryptocurrency is a problem that needs to be addressed before cryptocurrency becomes mainstream. Your grandmother wouldn’t use it when it’s so easy to lose everything.”
However, others have pointed out that the primary should do more research before using the technique, using u/jadecrystal writing:
“No, you don’t need to design technology, but if you don’t have a basic understanding of … microwave ovens, car starters, engines and steering columns … or public key cryptography and blockchain addresses, this is what happens.”
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