CryptoPunk $56M sale likely a marketing ploy, says expert

A reported $56 million sale of a CryptoPunk non-fungible token (NFT) is likely an orchestrated publicity stunt rather than a legitimate transaction, according to an NFT expert. 

On October 3, reports surfaced suggesting that CryptoPunk 1563 sold for 24,000 Ether (CRYPTO:ETH), worth $56.2 million at the time. 

This price was more than double the highest amount ever paid for a CryptoPunk during the NFT boom in 2022. 

However, on-chain data reveals a different story. 

The buyer funded the purchase with a 24,000 ETH flash loan from the Balancer automated market maker (AMM) protocol, a loan repaid immediately after the transaction. 

Despite the NFT changing hands, the buyer only spent $54 on gas fees and contract execution costs. 

This has led some to believe the sale was designed to generate attention rather than being a genuine trade. 

According to a post by pseudonymous crypto commentator 0xQuit, the sale was likely a tactic to promote a new memecoin called "Kamala Harris Punk." 

The commentator speculated that after seven days, the NFT would be sold to the highest bidder, with the developer receiving 10% of the token supply and 10% of the funds raised from both the presale and the eventual sale of the CryptoPunk. 

"24,000 ETH is a psyop to advertise what is basically a presale," 0xQuit said in the October 3 post. 

The minimum bid for the NFT will be the same amount raised during the presale, further indicating that the transaction may not be legitimate. 

In the past, similar flash loan NFT sales have occurred. 

In 2021, an investor used a $532 million flash loan to buy CryptoPunk 9998, only to return the funds immediately. 

Platforms like Larva Labs, the creators of CryptoPunks, do not recognise such sales as legitimate, setting a precedent for how these transactions are viewed.