Crypto Punk Sells for $56M
CryptoPunk #1563. Image: Yuga Labs
Greetings Warriors
Let’s break down the CryptoPunk sale that’s been making waves. Did a CryptoPunk NFT really sell for $56.3 million in Ethereum while the broader NFT market struggles? Nope—and here’s why.
CryptoPunk #1563 was reportedly sold for a whopping 24,000 ETH, which is $56.3 million, but the details quickly raise red flags. First off, this specific Punk last sold for around $69,000 just weeks ago, and it’s a “floor Punk”—meaning it doesn't have any rare attributes that would justify a price jump of over 81,000%. So, how did this happen?
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
It turns out the transaction was made using flash loans—a type of loan in the crypto world that doesn’t require collateral and must be paid back within the same transaction. In simple terms, the buyer took out a massive loan from a DeFi protocol (Balancer), purchased the Punk, and then the seller immediately used that same loan to repay the balance. It was a clever move, but no real money was exchanged, and no one made any profit, except for the network fees.
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.
— Quit (@0xQuit) October 3, 2024
But this one actually sacrificed a punk...
1/🧵 pic.twitter.com/BrjZ9qyLpa
Apple Pencil (2nd Gen)
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Attach Charge
This isn’t the first time something like this has happened. Back in October 2021, a similar flash loan stunt pushed a CryptoPunk sale to an astronomical $532 million, grabbing headlines but ultimately being dismissed by platforms like Larva Labs (CryptoPunk’s creators). They refused to recognize the sale as legitimate, and many NFT data platforms followed suit.
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What makes this case even more interesting is that it’s allegedly tied to the launch of a meme coin called “Kamala Harris Punk,” according to on-chain sleuth 0xQuit. It looks like the developer used this sale as a marketing stunt to generate hype before the token’s presale.
So, while these inflated sales are grabbing attention, they’re not real transactions in the traditional sense. It’s all part of a larger play in the NFT and DeFi world, but they’re not exactly “record-breaking” sales we should take at face value.
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It’s wild, but these protests are making waves—not just in the climate movement, but in how we think about art, activism, and what it all means for the future.
In the real world, CryptoPunk sales have been slower but steady, with around $16.7 million in legitimate trading volume over the past 30 days. The highest known legitimate sale remains a $24 million Punk purchase back in February 2022.
As always, in the world of NFTs, not everything is as it seems.
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