Confusion descended on the Ethereum community after a mysterious entity known only by the ENS name nd4.eth sent 2,500 ethers worth over $4 million to a burn address. As a result, the aforementioned coins were destroyed for no apparent reason.
The bizarre move that occurred on July 26 remained obscured from public scrutiny until now when several eagle-eyed on-chain sleuths tracked down the whale’s activity. The details of why or how this happened were still vague as of the time this news was written.
As community members continue to unravel the mysterious incident, Laurence Day, the creator of Wildcat Protocol, began to playfully proclaim that the anonymous user’s gesture has contributed to Ethereum being an “ultrasound” form of money.
Due to an upgrade called EIP-1559, which resulted in burning a portion of transaction fees, ETH gained the potential to become a deflationary asset. This is because the burned fees can outweigh the ETH issued to validators, given enough demand for block space.
This deflationary potential, along with the implied increase in Ethereum’s price given stable demand, led to the narrative of the altcoin becoming “ultrasound” money. Still, many found it amusing when the user’s ENS was registered under phrases like “enditall.eth.” One remarked, “Not gonna lie, is kind of jealous of this level of existentialism.”
According to leading data tracking platform Lookonchain, nd4.eth had previously sent WETH to another burning address [0x00…0000] several times, worth about $8,000. nd4.eth still holds about $3.57 million, which is staked on GMX and GNS.
The Unknown Ethereum Burner Boasts An Impressive DeFi Portfolio
The guy who transferred 2,500 $ETH [$4.58M] to a dead address on July 26th is a whale with 34,287 $GMX [$1.84M] and 311,003 $GNS [$1.43M]. He spent 5,330 DAI to buy GMX and GNS on July 29 and also transferred 34.9 GMX [$1,989] and 600 GNX [$2,733] to the dead address.
An astounding $3.52 million has been allocated to GMX_IO, GainsNetwork_io, and Apecoin stakes at the wallet address nd4.eth. Lookonchain further examined their DeFi portfolio and revealed: GMX: $1.8 million, $11,000 in WBTC, $11,000 in WETH, and $15,000 in USDC. Gains: $1.4M in GNX and $160K in DAI APE Stake: $41K in APE