A CryptoPunk worth millions was acquired for a fraction of its value through a smart contract, surprising onlookers who described what happened as either a “heist” or a brilliant play.
CryptoPunks are some of the most expensive non-fungible tokens (NFTs) around. Because of their value, some decided to fractionalize these NFTs, splitting ownership of the piece.
With smart contract mechanisms allowing fractionalization in place, a trader acquired a CryptoPunk with current bids of over 600 Ether (ETH), worth about $1.5 million, for only 10 ETH ($23,000).
Rare Ape CryptoPunk sells for 10 ETH
Punk #2386, a rare Ape-themed CryptoPunk with a headband and small shades, was one of the NFTs fractionalized through a now-defunct platform called Niftex. According to the pseudonymous developer 0xQuit, the NFT was split into 10,000 parts with 257 owners in 2020.
CryptoPunk #2386 was acquired for only 10 ETH. Source: CryptoPunks
While the Niftex platform was decommissioned, the smart contracts continued to exist in the blockchain, allowing a trader to trigger a mechanism that allows a buyout.
The developer explained that the setup allowed any shareholder to propose a “shotgun,” giving them a chance to purchase the piece after setting a price. If no one counters their bid, the asset will be transferred after 14 days.
Because of this, a trader proposed a buyout for only 10 ETH on Aug. 28. The developer explained that pseudonymous NFT collector gmoneyNFT noticed and attempted to block the shotgun. However, the NFT trader could not set a proper counterbid, so the buyout proceeded.
Source: TropoFarmer
The NFT was acquired at only a fraction of its actual value. According to the CryptoPunks site, the NFT had bids of about 900 ETH (about $2 million) in January. On Sept. 6, CryptoPunk #6915, an Ape-themed Punk with a cap, an earring, and an eye patch, sold for $1.5 million.
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