ZachXBT’s NFT accidentally valued at $15M on Base network

ZachXBT, a blockchain investigator, created an NFT on the Base network in August to archive his investigation into a $243 million theft involving a Genesis creditor.

However, due to an automatic setup in the Zora protocol, this NFT was unintentionally converted into a tradable ERC-20 token, reaching a $15 million market cap.

The original intent behind ZachXBT’s NFT was simply to serve as a permanent digital record of his findings, much like his previous articles on Mirror.

But Zora’s interface lacks clear indicators, automatically creating an ERC-20 token at the conclusion of an open edition NFT mint.

“The Zora UI currently does not give any indication to creators that an ERC-20 token will also be launched at the conclusion of an open edition NFT mint,” ZachXBT explained.

Screenshots provided by ZachXBT demonstrate this lack of transparency.

Through Zora’s ERC20z standard, the NFT was transformed into 3,500 ERC-20 tokens that became tradable on decentralised exchanges like Uniswap, similar to other token creation platforms.

Initially valued at zero, the token’s price surged to $4,300, bringing its market cap to $15 million, before it dropped to around $4 million, as per DEX Screener data.

"If people continue tagging me on posts, I am going to dilute the piece with more mints that do not have an end date and possibly take other actions like replacing artwork off Zora with a blank image," stated ZachXBT, expressing frustration over the speculative trading surrounding the token.

This situation emphasises challenges within blockchain protocols, where automated processes and unclear interfaces can lead to unintended outcomes.