CryptoPunk NFT sold for $56M: A record-breaking deal or marketing stunt?

• Flash loan-funded CryptoPunk purchase could be a marketing stunt for a new memecoin.
• Similar flash loan sales were previously dismissed as illegitimate by CryptoPunks creator Larva Labs.

On the 4th of October, news broke that someone purchased CryptoPunk 1563 for 24,000 ETH, valued at $56.3 million.

The record-breaking transaction quickly raised suspicions on the surface and behind the scenes, casting doubt on its authenticity.

Just another promotional campaign? 

Despite being confirmed on OpenSea and circulating widely across social media, experts suggest that the sale was likely part of a marketing ploy for an upcoming memecoin, rather than a legitimate purchase.

Source: CryptoPunks Bot/X

If true, this would dwarf the previous high for a CryptoPunk, doubling the top price paid during the NFT craze in early 2022.

The buyer of Punk 1563 took out a 24,000 ETH flash loan from the AMM protocol Balancer to facilitate the purchase.

After completing the transaction, the seller’s wallet promptly returned the entire 24,000 ETH to Balancer, highlighting an unusual approach for an NFT sale.

Despite the NFT changing ownership and the substantial sum of 24,000 ETH moving between contract addresses, the buyer paid only $54, which covered gas fees and contract execution.

Crypto commentator 0xQuit suggested that the sky-high sale price of Punk 1563 is likely part of a promotional campaign for a new memecoin tied to a “Kamala Harris Punk.”

He added,

Source: 0xQuit/X

At last, 0xQuit summarized the entire thread and noted, 

“ 24,000 ETH is a psyop to advertise what is basically a presale where, after 7 days, the punk is sold to the highest bidder with a minimum bid equal to the amount raised in the presale. Also maybe a political statement given the name and the clown makeup.” 

The news around CryptoPunk 

This recent sale of CryptoPunk 1563 saw its price surge by an astonishing 81,000% in just weeks. This raised more questions than answers.

Originally purchased for around $69,000 in September, CryptoPunk lacks any rare attributes and typically trades near the collection’s floor price.

This isn’t the first time someone has used a flash loan to inflate the apparent value of a CryptoPunk. A buyer completed a $532 million sale in 2021.

However, many question the legitimacy of such sales.

For instance, Larva Labs, the creator of CryptoPunks, and other NFT platforms dismiss these flash loan-driven purchases as non-legitimate.