On paper, $ 532 million Cryptopunk NFT, may have been the biggest NFT sale of all time. However, going through with the trade would have resulted in the seller making a profit- so it is unclear whether or not there was any sort of exchange here.
The most expensive nano-fiber token ever is a collage by Beeple that sold for $69 million at Christie’s. When an NFT sold for $532 million in October, that was a HUGE deal. However, problems often arise when crypto & NFTs meet.
The NFT in this case is a CryptoPunk, one of 10,000 other NFTs created first out of the gate. Having the first-mover advantage makes them pretty pricey—usually costing around $350,000 to $500,000 (though some sell for millions).
Also Read: Bitcoin Price Down 20% as Crypto Market Crash Sees $1 Billion Liquidated
Whoever made the transaction, it looks like they bought the Cryptopunk from themselves. Like cryptocurrency, NFTs are held in digital wallets. A person can create as many wallets as they like. This person transferred their NFT from Wallet A to Wallet B which was then bought by Wallet C for $532 million before being transferred back to Wallet A.
Why not just sell goods from one wallet to another? It’s because the buyer of the goods, of which he did not pay himself but instead was loaned the funds for by others, agreed to repay his loan with what he bought. Flash loans are complicated, but they’re the only way to get quick access to large sums of cryptocurrency. You can’t get them through traditional finance methods. So for crypto traders, these are vital tools. If you were buying a $1 million dollar property, but only if someone has already provided you with the money to do so. This person did this, but they simply need to make enough money for you to have a profit and interest from the lender. This means not only are they buying from you, but they’re also willing to give you loans for other purchases if needed
$532 million Cryptopunk NFT, is that correct?
Twitter and Discord are the two major platforms NFT speculation happens on. Both quickly discovered this sale and speculated on what the motives behind it may have been. The general opinion is that it was a publicity stunt, with the intent of driving up interest in their own product by generating hype.
There are two types of digital art. One is a one-of-a-kind, where an artist sells their artwork to someone and it’s the only copy that will ever exist like in real life. The other type is the commission or original artwork that has been commissioned by or for a client. NFT collections, like Cryptopunks, are a way to diversify your collection. They typically have 10,000 NFTs with the same template but different characteristics. For instance, items in the Bored Ape Yacht Club all have ape heads but are each unique in different ways with different backgrounds and facial expressions. Scarcer property equals a higher value. In the case of Bored Apes, the more common ones cost as little as $190,000 while some auctioned off for millions. (An auction of 101 recently went for 24 million.)
CryptoPunks is the original NFT collection – it started in 2017 when many around the world had just been introduced to Bitcoin. The highest legitimate sale of a CryptoPunk was $11.7 million