CryptoPunk's Record $56M Sale Might Be a Marketing Trick

CryptoPunk's Record $56 Million Sale Might Be a Marketing Trick

Written by Gode S.,

Web3 Market Analyst

Last Updated: October 04, 2024

Key Takeaways

Punk #1563 NFT sold for 24,000 ETH (about $56M), making it the most expensive CryptoPunk ever sold;
Crypto commentator 0xQuit suspects the sale was a marketing stunt for a memecoin, involving a flash loan and minimal actual spending;
The NFT will be auctioned again, with 10% of the proceeds going to the developers.

The Punk #1563 non-fungible token (NFT) sold for 24,000 Ether (around $56 million) on October 3, making it the most expensive CryptoPunk ever sold.

However, some are questioning whether the sale was authentic. According to crypto commentator 0xQuit, the deal may have been a marketing tactic to promote a new memecoin, Kamala Harris Punk, which has an open presale for a week.

0xQuit pointed out that the buyer took out a flash loan of 24,000 ETH from the Balancer protocol and sent it to the seller's wallet, which sent it right back to Balancer. This suggests that both wallets belong to the same person, who only had to spend around $54 to cover gas fees.

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0xQuit further explained that the NFT will be auctioned again in seven days, with the highest bidder getting the punk, adding:

The dev then gets 10% of the token supply, and 10% of the funds received from the presale and sale of the punk.

Summing it up, 0xQuit believes the flashy 24,000 ETH price was simply a stunt to advertise the memecoin's presale. The punk's clown-like appearance and name could also be a political statement.

In other news, the United States Securities and Exchange Commission (SEC) was recently criticized by two of its own commissioners following a $750,000 settlement involving Flyfish Club, an NFT restaurant.