Exposing the Reality of the Supposed $56M CryptoPunk NFT Transaction
CryptoPunk 1563 Transaction Raises Doubts
CryptoPunk 1563 was sold this afternoon for 24,000 ETH, or $56.3 million, in what appeared to be a large transaction. However, several visible and concealed red flags arose, raising concerns about the sale’s legality.
About $69,000 in ETH was paid in September for the purchase of CryptoPunk 1563. This raises questions as it is considered a “floor Punk,” meaning it usually sells near the entry-level price for the collection. With no rare attributes, there’s no reason to justify such an Extensive analysis of on-chain data indicates that the transaction was a component of a flash loan program. The purchase was made using flash loans, which are uncollateralized crypto loans that need to be paid back in one single transaction. The NFT buyer borrowed $24,000 in ETH from the DeFi protocol Balancer and paid it back in one transaction. Although the NFT did move between wallets, no actual money changed hands because the vendor repaid the loan. Only network fees were paid by the buyer.
This is not the first time such an application of flash loans has occurred. Someone paid an astounding $532 million for a CryptoPunk in October 2021 using flash loans, only to return the money in the same transaction. While the event made headlines during the NFT market boom, the sale wasn’t recognized as legitimate by CryptoPunks creator Larva Labs or other NFT data platforms.
Source link
#Truth #Alleged #56M #CryptoPunk #NFT #Sale
