User burns $5 million worth of Ethereum tokens

On 26 July, the user nd4.eth sent 2,500 ETH (roughly $4.58 million at the time of writing) to a burn address. This drew the attention of журналист Колин Ву.

According to on-chain data, on July 29 he spent 5330 stablecoins DAI on purchasing GMX and GNS tokens. On the same day nd4.eth burned 1.5 ETH, 600 GNS and 34.9 GMX for about $7,000.

Currently, the address still holds 34 287 GMX (~$1.84 million) and 311 003 GNS (~$1.43 million). The user also has 3.5 ETH (~$6,400), 5 411 LINK (~$38 900) and $41 000 in staking ApeCoin.

Some users jokingly thanked nd4.eth for contributing to Ethereum’s deflationary model. Lawrence Day, the creator of the Wildcat protocol, also commented on the situation.

“If you woke up this morning and didn’t say ‘thank you, nd4.eth, for contributing to the ultrasound-money narrative,’ you should really think about your goals,” he quipped ironically.

The term ‘ultrasound money’ originated as a meme in the Ethereum community to mock Bitcoin maximalists who described the first cryptocurrency as ‘sound money’ due to its limited supply of 21 million coins.

According to ForkLog’s analytical report, in 2022 the Ethereum network burned about 1.8 million ETH. In Q2 the pace slowed notably amid the asset’s price drop.

Earlier in February, NFT-collector Brandon Riley accidentally sent CryptoPunk #685 to the burn address. He bought the token for 77 ETH — about $129,000 at the time.

In June a group of Bitcoin enthusiasts intentionally burned CryptoPunk #8611 worth $94,000. Later, based on the destroyed token, appeared the inscription Ordinals.