A CryptoPunk non-fungible token (NFT) was sold for a whopping price of $56 million on Thursday. Market observers noted the price was above the highest amount of any CryptoPunk sold before.
The buyer used a 24,000 Ether flash loan to purchase the Punk 1563 NFT token. At the time of writing, the price of ETH is $56.2 million. Although this news grabbed the attention of many, several crypto analysts expressed that the sale could be fake, whereas, in reality, it could be a marketing strategy for the launch of a meme coin.
Punk 1563 bought for 24,000 ETH ($56,292,000.00 USD) by 0x9cbb3d from 0xba1349. https://t.co/FqDvGZvg05 #cryptopunks #ethereum pic.twitter.com/hWimHKYb0x
— CryptoPunks Bot (@cryptopunksbot) October 3, 2024
Earlier in 2021, a similar CryptoPunk was sold for $532 million. Traders use flash loans to manipulate the price of NFT. These kinds of deals are not true ‘trade’, but rather are simple schemes to pump the price and interest around an asset.
Interestingly, the sale is presumed to be linked to a new meme coin – Kamala Harris Punk. Several crypto analysts stated that the sales could be a publicity stunt for the launch of the coin. Notably, the coin would be sold after one week of presale to anyone who can beat its price.
Indonesia’s Postal Service Launches Innovative NFT StampsConsidering the amount of traction gained by the NFT sale, it raises concern over price manipulation and transparency of digital assets. Market observers stated that such marketing stunts, which have become quite popular, distort the market demand for other products. This confuses traders who assume that the asset is of high value, thereby paying more than it is worth.
Interestingly, the NFT token, Punk 1563, is regarded as a ‘floor punk’. This implies that the token is actually sold for the lowest price in the market. By focusing on such low-value assets, many analysts are skeptical regarding the value of other products in the market.
