CryptoPunk Sold for a Record $56.3 Million; Is NFT Frenzy Back?
NFT collection CryptoPunk has hit a record-breaking sale in the NFT markets. Punk #1563 sold for 24,000 ETH worth about $54.3 million and emerged as the most expensive CryptoPunk NFT ever sold.
The sale has garnered several reactions within the crypto market, with many speculating about the return of the NFT frenzy.
CryptoPunk Sale Marks A Historic Moment In The NFT SpaceThe sale of CryptoPunk #1563 marks a significant and historic moment in the NFT market. According to data from OpenSea, a prominent NFT marketplace, CryptoPunk #1563 sold for 24,000 ETH tokens, which, at current market prices, amounts to almost $56.3 million.
Punk 1563 bought for 24,000 ETH ($56,292,000.00 USD) by 0x9cbb3d from 0xba1349. https://t.co/FqDvGZvg05 #cryptopunks #ethereum pic.twitter.com/hWimHKYb0x
- CryptoPunks Bot (@cryptopunksbot) October 3, 2024
Before now, the NFT market saw high-price sales for most collectibles asinvestors focused on these tokens. Later, the memecoin mania took over, with several memecoins flooding the market.
However, the recent CryptoPunk sale has recaptured much interest as a reminder of the potential value the NFTs could offer.
The CryptoPunk NFT recorded an all-time high of $23.7 million in February 2022, some months before the crypto winter swept over the broader crypto market.
Punk #1563 depicts a pixelated woman with blue eyes and dark hair. In September, the Punk received a sale offering below 30 ETH. So, the latest deal reflects a huge markup as against real pricing.
CryptoPunks is an NFT collection of 10,000 unique tokens designed as 24 X 24 pixel art characters. Developed on the Ethereum blockchain in 2017 by Larva Labs, the collection has had meteoric growth and has become iconic in the NFT space.
Moreover, the collectibles reflect specific traits that account for their rarity and uniqueness. Also, their attributes, including zombies, aliens, and others, increase their demand and prices in the market.
An Observer Labels Punk Sale As A Potential Public StuntThe CryptoPunk #1563 sale has generated many reactions within the industry. After exploring on-chain data surrounding it, a crypto observer believes the transaction is likely a public stunt.
A pseudonymous crypto commentator, 0xQuit, took to X to discuss the details of the Punk sale in a series of posts.
Flash loans are zero risk loans where the full loan amount must be paid back in the same transaction is was originated. They are useful for arbs or opportunities for profit where you simply don't have the ETH up front.
But this one actually sacrificed a punk...
- Quit (@0xQuit) October 3, 2024
0xQuit uncovered that the buyer took a flash loan of 24,000 ETH from Balancer, an automated market maker, to purchase the NFT.
Following the completion of the sale, the seller's address returned the 24,000 ETH to Balancer. This trend indicated an abnormality for any legal NFT purchase.
Meanwhile, the transaction sequence shows the transfer of 24,000 ETH coins from one contract address to another. Also, the buyer only bears the $54 gas fee and other costs on contract execution to own the NFT.
Further, 0xQuit pointed out that Punk #1563 sale was used to drum publicity for a Kamala Harris Punk" memecoin. He stated: tl;dr 24,000 ETH is a psyop to advertise what is a presale where, after 7 days, the punk is sold to the highest bidder with a minimum bid equal to the amount raised in the presale."
This NFT sale is just one of the cases involving flash loans and weirdness, as the industry has recorded a bigger instance. For example, in 2021, an investor purchased a CryptoPunk NFT for $532 million with a flash loan.
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