News emerged on October 4th of the sale of CryptoPunk 1563 for 24,000 ETH, amounting to $56.3 million.
This unprecedented transaction sparked doubts and speculation about its authenticity, both overtly and in the shadows.
Is it All Just a Clever Promotional Strategy?
Despite verification on OpenSea and widespread coverage on social media, experts are suggesting that this sale might have been orchestrated as part of a marketing tactic for an upcoming memecoin rather than a legitimate acquisition.
If accurate, this would surpass the previous record price for a CryptoPunk, doubling the peak amount paid during the NFT frenzy earlier in 2022.
The buyer of Punk 1563 opted for a 24,000 ETH flash loan from the AMM protocol Balancer to facilitate the purchase.
Following the transaction’s completion, the seller’s wallet promptly reimbursed the entire 24,000 ETH to Balancer, showcasing an unconventional approach to an NFT sale.
Despite the transfer of ownership of the NFT and the substantial 24,000 ETH transactions between contract addresses, the buyer only paid $54, covering gas fees and contract execution.
Crypto analyst 0xQuit proposed that the extravagant sale price of Punk 1563 is possibly part of a promotional maneuver for an upcoming memecoin linked to a “Kamala Harris Punk.”
In conclusion, 0xQuit consolidated the discussion and remarked,
“24,000 ETH is a tactic to promote what essentially is a presale, where, after 7 days, the punk is auctioned off to the highest bidder with a minimum bid equivalent to the presale amount. This might also be a political commentary given the name and the clown makeup.”
Insights into the CryptoPunk Buzz
This recent CryptoPunk 1563 sale witnessed an 81,000% surge in its price within a few weeks, prompting more queries than clarifications.
Originally bought for approximately $69,000 in September, CryptoPunk lacks distinctive features and typically hovers around the collection’s base price.
This instance isn’t the first where a flash loan was utilized to inflate a CryptoPunk’s apparent value, with a buyer finalizing a $532 million acquisition in 2021.
Nevertheless, doubts loom over the genuineness of such transactions.
For instance, Larva Labs, the originator of CryptoPunks, and other NFT platforms discredit these flash loan-induced sales as lacking legitimacy.