- Flash loan-funded CryptoPunk purchase could be a marketing stunt for a new memecoin.
- Similar flash loan sales were previously dismissed as illegitimate by CryptoPunks creator Larva Labs.
As a seasoned researcher with years of experience navigating the intricate world of cryptocurrencies and NFTs, I find myself skeptical about this record-breaking sale of CryptoPunk 1563 for an eye-popping $56.3 million.
It was announced on October 4th that CryptoPunk 1563 was bought using 24,000 units of Ethereum (ETH), equating to an astounding $56.3 million in value.
The unusually large deal prompted suspicion, both openly and privately, causing questions about whether it was genuine or not.
Just another promotional campaign?
Although it appears genuine due to its presence on OpenSea and widespread sharing on social networks, specialists believe that the transaction might have been a strategic move in promoting a future meme-based cryptocurrency, instead of a genuine sale.
If it’s accurate, this surpassing figure would greatly overshadow the prior maximum for a CryptoPunk, effectively doubling the highest price ever paid during the NFT frenzy in early 2022.
The buyer of Punk 1563 took out a 24,000 ETH flash loan from the AMM protocol Balancer to facilitate the purchase.
Following the completion of the transaction, the seller’s digital wallet swiftly transferred the full amount of 24,000 Ether back to Balancer, showcasing a distinct method that is not commonly seen in NFT sales.
Although the NFT was transferred to a new owner and 24,000 ETH shifted between contract addresses, the purchaser ended up spending just $54 for transaction fees and contract processing costs.
0xQuit, a crypto analyst, speculates that the exceptionally high selling cost of Punk 1563 might be connected to a marketing strategy for a freshly launched memecoin linked with a “Kamala Harris CryptoPunk.
He added,
At last, 0xQuit summarized the entire thread and noted,
24,000 ETH appears to be a deceptive tactic to promote an auction event disguised as a pre-sale. Within seven days, the item will be sold to the highest bidder with a minimum starting price matching the funds collected during the pre-sale. Additionally, considering the name and clown makeup, it might also serve as a political statement.
The news around CryptoPunk
In a stunning turn of events, the latest transaction for CryptoPunk 1563 witnessed an astounding 8,100 times increase in value over a brief span of weeks. This has sparked more curiosity and speculation than clear-cut explanations.
Initially bought for approximately $69,000 in September, a CryptoPunk doesn’t have any unique traits and is usually sold close to the lowest price point within its collection.
It’s not a new occurrence that someone has manipulated the perceived worth of a CryptoPunk using a flash loan, as was seen in a $532 million sale back in 2021.
However, many question the legitimacy of such sales.
In a similar vein, Larva Labs, the innovator behind CryptoPunks and other NFT marketplaces, views transactions fueled by flash loans as questionable or invalid.
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2024-10-04 14:15