NFTs

CryptoPunk #1563 Sold for $56M, Legitimacy Questioned

2 Mins read

A CryptoPunk NFT has reportedly been sold for 24,000 ETH, equivalent to $56.3 million, making it the most expensive sale in the collection’s history.

The transaction, involving CryptoPunk 1563, has sparked immediate interest across the digital collectibles community due to its record-breaking price.

However, concerns have emerged about the nature of the sale, with some experts suggesting it may not have been a legitimate transaction.

Cryptopunk #1563 Sold for 24,000 ETH
Cryptopunk #1563 Sold for 24,000 ETH Source: CryptoPunks

The Sale of CryptoPunk #1563

CryptoPunk 1563 is part of the original 10,000-piece NFT collection created by Larva Labs in 2017. The collection was distributed for free at the time of its launch, and it has since become one of the most iconic digital collectible sets on the Ethereum blockchain.

On October 3, 2024, a transaction was recorded where CryptoPunk 1563 was sold for 24,000 ETH, or approximately $56.3 million. The buyer purchased the NFT from the seller, setting a new record for the highest sale price for any CryptoPunk.

Despite the significance of the transaction, CryptoPunk 1563 is considered a “floor Punk” in the collection. This means it lacks rare or distinctive traits compared to other CryptoPunks, which typically fetch higher prices based on their rarity.

Community Concerns

Soon after the sale was reported, blockchain analysts began raising questions about its legitimacy.

On-chain data suggests that the sale may have involved the use of a flash loan, a type of uncollateralized loan that is repaid within the same transaction. In this case, it appears that the buyer borrowed the 24,000 $ETH necessary for the purchase and repaid it immediately, meaning no actual funds exchanged hands between the buyer and seller beyond network fees.

Flash loans have been used in the past to create artificial transactions in the NFT market. A similar event occurred in 2021, when a CryptoPunk was “sold” for $532 million using the same method. That sale was later disregarded by both Larva Labs and major NFT platforms due to its non-legitimate nature.

Some have also suggested that this latest sale may be part of a larger promotional strategy. According to blockchain researcher 0xQuit, the transaction could be tied to the upcoming presale of a meme coin and that the CryptoPunk may have been used to generate attention for the token sale.

The exact details of this promotion remain unclear, but the high-profile sale has certainly attracted significant attention.



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