On October 3, CryptoPunk #1563 was sold for 24,000 ETH (~$56.29 million), doubling the previous highest amount spent in US dollars for a token from the collection during the NFT craze before February 2022.
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
On-chain analysis revealed that the “buyer” utilized a flash loan of 24,000 ETH from Balancer. After the transaction, the “seller’s” wallet sent the same 24,000 ETH back to the DeFi platform.
The user spent $54 on gas and contract execution.
According to a user known as 0xQuit, the high sale price of the NFT is a marketing ploy to draw attention to the meme coin Kamala Harris Punk.
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…
1/? pic.twitter.com/BrjZ9qyLpa
— Quit (@0xQuit) October 3, 2024
“In seven days, #1563 will be sold to the highest bidder with a minimum bid equivalent to the presale amount. […] It might be a political statement, given the name and clown makeup,” he commented.
On October 29, NFT CryptoPunk #9998 was sold for a record 124,457 ETH ($532 million at the time of the transaction), but the deal turned out to be fake—the owner sold the token to himself.
The creators of the collection from Larva Labs stated that a user named blurr purchased the asset using a flash loan and repaid the loan in the same transaction, which technically makes the deal illegal.
In the last reporting month, NFT sales volume of $303.6 million was the lowest in the past year, according to CryptoSlam.
In September, a rare CryptoPunk was sold for $1.5 million with a “paper” loss of 78%.