- Flash loan-financed CryptoPunk purchase could be a marketing stunt for a new memecoin.
- Similar flash loan sales were previously dismissed as illegal by Larva Labs, the maker of CryptoPunks.
On October 4, news broke that someone had purchased CryptoPunk 1563 for 24,000 ETH, worth $56.3 million.
The record-breaking transaction quickly aroused suspicion on the surface and behind the scenes, casting doubt on its authenticity.
Just another promotional campaign?
Despite confirmation on Open Sea Experts suggest 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 eclipse the previous high for a CryptoPunk, doubling the highest price paid during the NFT craze in early 2022.
The buyer of Punk 1563 took out a flash loan of 24,000 ETH with the AMM protocol Balancer to facilitate the purchase.
Upon completion of the transaction, the seller’s wallet immediately returned the entire 24,000 ETH to Balancer, highlighting an unusual approach for an NFT sale.
Despite the NFT changing hands and the significant amount of 24,000 ETH moving between contract addresses, the buyer only paid $54, which covered gas costs and contract execution.
Crypto commentator 0xExit suggested that Punk 1563’s sky-high sale price is likely part of a promotional campaign for a new memecoin linked to a ‘Kamala Harris Punk’.
He added:
Source: 0xExit/X
Finally 0xQuit summarized the entire thread and noted:
“24,000 ETH is a psyop to advertise what is essentially a pre-sale, where the punk is sold after seven days to the highest bidder with a minimum bid equal to the amount raised in the pre-sale. Maybe also a political statement, given the name and the clown makeup.”
The news around CryptoPunk
This recent sale of CryptoPunk 1563 saw the price increase by an astonishing 81,000% in just a few weeks. This raised more questions than answers.
Originally purchased for around $69,000 in September, CryptoPunk lacks any rare features and typically trades at the collection’s reserve price.
This isn’t the first time someone has used a payday loan to inflate the apparent value of a CryptoPunk. One buyer completed a $532 million sale in 2021.
However, many doubt the legitimacy of such sales.
For example, Larva Labs, the maker of CryptoPunks, and other NFT platforms dismiss these flash loan-based purchases as illegitimate.
