This NFT CryptoPunk just sold for $ 530 million. Type of

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CryptoPunk # 9998, which is part of a 10,000 NFT collection, “sold” for $ 530 million on Thursday.

OpenSea / User 0xef764bac8a438e7e498c2e5fccf0f174c3e3f8db

It’s the most expensive NFT ever sold, at least on paper. On Thursday, someone bought a CryptoPunk NFT, or non-fungible token, for 124,457 ethereum – $ 532 million. However, as is often the case with NFTs and cryptocurrencies, things are not exactly what they appear to be.

Whoever is behind the deal, they bought the Cryptopunk on their own. Like cryptocurrency, NFTs are held in digital wallets. There is no limit to the number of portfolios a person can create. This person transferred the NFT from wallet A to wallet B. Then wallet C bought the NFT for $ 532 million from wallet B – and immediately transferred it to wallet A.

Why use three wallets instead of just selling them from one wallet to another? This is because the buyer did not pay for the transaction himself, but was instead loaned money by others via a “flash loan”. Flash loans are a complicated decentralized financial tool, but the bottom line is that they allow you to lend huge amounts of cryptocurrency only. if the criteria for a smart contract are met. Imagine if you could buy a million dollar house using a loan, but only if you already had another buyer online, who was willing to pay enough for you to make a profit and pay off the interest from the lenders. This person did that – except he was both the buyer and the seller.

NFT, am I right?

Twitter and Discord, the platforms on which most NFT talk takes place, quickly discovered the sale and speculated on the motives behind it. The smoke on the street is that this was a publicity stunt, with the owner probably trying to jack up the price of his CryptoPunk.

There are basically two types of artistic NFTs. One type is one of a kind, where an artist creates a digital work of art and then sells it, just like what happens in art sales in the real world. Then there are the NFT collections, like Cryptopunks. This is when artists and developers create many – usually 10,000 – NFTs that have the same model with different characteristics. The Bored Monkey Yacht Club, for example, features 10,000 monkeys all wearing different clothes, with different origins and facial expressions. The rarer the properties, the more valuable the NFT – think Pokémon cards. In the case of Bored Apes, the “floor” price is $ 152,000, but the few sell for millions.

CryptoPunks is considered to be the original NFT collection, as of 2017, when much of the world was just starting to embrace Bitcoin. There are 10,000 Cryptopunks in the collection, with the cheapest starting at 100 ethereum, or around $ 400,000.


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