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Here's Why a CryptoPunk Sold for $530M

Here's Why a CryptoPunk Sold for $530M

Crypto An NFT (non-fungible token) created by CryptoPunk was purchased for a whopping $500 million resulting in Crypto Twitter being briefly ablaze on Thursday night. If the sale had gone through, it would have been the most expensive ever not only in the NFT world, but also in theentire history of art.

Nevertheless, on-chain analysts were quick to note that the transaction could have been a publicity trick intended to garner attention.

A Twitter bot that keeps track of CryptoPunks sales first noticed the transaction soon before 8 p.m. Eastern Time on Tuesday (00:00 UTC Friday). If the 124,457.07 ETH sale was legitimate, it would have handily outperformed the 4,200 ETH auction of an ultra-rare extraterrestrial punk in March, which brought in more than $530 million.

A floor price of 100 ETH is set for CryptoPunks, which is a term that refers to the lowest price at which a piece from a particular NFT collection can be purchased. However, the punk in question, #9998, lacks desirable characteristics from a collector's perspective, leading some to speculate that the purchase was a "fat finger," a term that refers to the immutable, irreversible errors that are common in blockchain technology.

A closer look at the chain, on the other hand, reveals that the purchase was simply the result of some clever smart contract trickery.

Wallet profiler Nansen identified the address as prolific decentralized finance(DeFi) user, NFT collector, and smart contract deployer who also happens to be the owner of the blurr.eth Ethereum Name Service NFT, which enabled the purchase to be made through a flash loan contract deployed by that address.

Banterlytics, a contributor to the on-chain analysis publication OurNetwork, told CoinDesk that the transaction was likely carried out simply "for the bantz." Banterlytics also said that the transaction was likely carried out solely "for the bantz."

The transaction cost 0.19 ETH, which is approximately $800, and the address added a comment in the transaction's metadata stating that the transaction "appeared to be rare."

On a technicality, a comparable flash loan transaction was carried out in February to purchase a HashMask NFT for 139,000 ETH, which is presently the highest NFT sale ever recorded - at least on paper.

CryptoPunks NFT- Larva Labs

The Ethereumblockchain is used to hold proof of ownership for 10,000 unique collectible figures. October saw the sale of a $532 million NFT. As a result of the application of blockchain technology, there are 10,000 unique CryptoPunks(6,039 male and 3,840 female). There are no two characters precisely similar because they were formed by computer code, although some qualities are more common than others. This was the effort that served as the inspiration for the present CryptoArt movement. In 2018, Mashable, CNBC, The Financial Times, Bloomberg, MarketWatch, The Paris Review, Salon, The Outline, BreakerMag, Christie's of London, Art|Basel, The PBS NewsHour, and The New York Times were among the publications and appearances that he made. In 2021, he will appear on the same list.

The Cryptopunks are one of the original examples of a "Non-Fungible Token" on Ethereum, and they served as inspiration for the ERC-721 standard, which powers the majority of digital artand collectibles on the platform.