Raid on crypto punks! One buyer, a hundred punks, $6M!
Hide your Punks! Marketplaces are no longer secure. A mysterious buyer has just bought a hundred NFTs at once for over $6 million (~£4,3) million!
88 and 12 Crypto Punks: $6 million
But what are CryptoPunks? CryptoPunks are one of the first NFT projects on the Ethereum blockchain. They also inspired the now widely accepted ERC-721 standard for NFTs, laying the groundwork for today’s NFT market.
Created by Larva Labs, there are 10,000 of these unique little punks available in pixelated format. They are among the most expensive NFTs because of their OG status as well as the hype around them. So having a CryptoPunk as a Twitter profile picture is a cool thing. Social status can be flaunted through NFTs too! Welcome to Web 3.0.
In short, we have here:
• One of the first NFTs ever created on Ethereum, precursors to the ERC-721 standard.
• A limited number: 10,000 Crypto Punks, no more, no less.
• Wide use of CryptoPunks on social media to show belonging to a group and social value.
• CryptoPunks’ rarity: there are different races like aliens (9), apes (24), or zombies (88), women (3840) and men (6039).
• And in addition to these, there are also different attributes!
Now, over 1% of all of these Punks were suddenly bought by an Ethereum whale.
Unit price? Between 24 and 29 ETH, or between £43,000 and £52,000 as of 1st August, 2021. More than four million pounds in total! A hell of an expense for what some people would call a simple JPEG.
Using Mining DAO to buy all within one block
As highlighted by user @punk4464 on Twitter, the NFT purchase was done in a single block thanks to MiningDAO. So for only 5 ETH, or £8,500, the buyer was able to have all of these transactions in a single mining block. We see it as some kind of bribe to get through the VIP entrance and not stand in line, avoiding the risks of being refused entry or worse!
The advantage of doing this directly through a miner and not through the Public Pool?
• Not alerting buyers who would like to outbid upon seeing different purchases, and/or different sellers.
• Not depending on ETH gas fees.
The mysterious buyer had well prepared his move by making a test purchase the day before! Magic of the blockchain: you can see everything if you know where to look.
The Three Arrows Capital fund behind this manoeuvre?
According to user Michael Tant, it seems like Three Arrows Capital investment fund could be behind this operation.
Already quite exposed to crypto assets, the fund now seems to be going for NFTs. And what better way to start than with CryptoPunks, NFT kings?
As stated by Michael Tant, Art Blocks may be up next.
Plus, NFTs will start to be more and more accepted as collateral in various DeFi protocols such as Aave or Bunchy, so it’s certain that CryptoPunks will always have significant value.
So, Michael Tant believes Three Arrows Capital to be the wallet behind the purchase of ten punks this morning, as well as the mastermind planning to buy various Art Block works.
Some also linked the purchase of 88 Punks to a newly created Twitter account @0x650d. The mystery therefore remains intact, but the veil shouldn’t take long to be lifted!
Money laundering or an NFT bubble?
It’s not all roses though, with some Internet users wondering if this might hide a bubble or money laundering scheme.
Money laundering, an NFT bubble, or a big marketing campaign? The future will tell, but what’s certain is that NFTs are here to stay in some way, shape or form!
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Hello there ! Intéressé par l’univers des cryptos-actifs, je suis passé de simples présentations powerpoints à mes amis à la rédaction d’articles sur internet. L’univers des cryptos est tellement vaste qu’il me permet de lier plusieurs de mes passions alors pourquoi ne pas les partager avec vous ? “Cryptos toujours pareil ! Boom Boom dans les oreilles !” Satoshi Gesaffelstein
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.