Gotcha! They hyped, buying it from themselves!
This Thursday, the NFT space was shaken by the breaking news: the CryptoPunk #9998, part of a collection of 10,000 NFTs, "sold" for 124,457 ETH ($530 million at the moment). But as it often occurs in the NFT and crypto environment, things can be far from they seem at the first glance.
Non-fungible tokens like any crypto are kept in digital wallets. And any NFT holder can have an unlimited number of crypto wallets. Thus, no matter who stands behind this deal, they are most likely to buy the CryptoPunk from themselves.
Let's figure it out: The NFT holder just transferred their art piece from Wallet 1 to Wallet 2. Then they activated Wallet 3, which purchased the NFT for up the wazoo Ethereum from Wallet 2, and hurried up to return the art piece to Wallet 1.
Sounds crazy, yeah?
But there's a pure calculation behind this "purchase." The buyer most likely made use of a "flash loan," which allowed him to loan a remarkable sum of crypto within the smart contract, whose conditions were met to the fullest. Imagine you are about to buy a $100,000 car by means of a loan, but only if you already had another buyer lined up, who was willing to pay enough for you to make a profit and pay back interest from the lenders. This CryptoPunk holder did exactly the same, except this person was both the buyer and the seller.
Twitter and Discord communities are up on current events concerning the most expensive NFT deals and have knocked off the strategy at almost no time. This action was intended to drive up the price for their CryptoPunk, which is a pioneer in the NFT. Launched with 10,000 in 2017, the original collectibles today start at 100 ETH, or about $400,000.
Another NFT titans, Bored Apes, also break all records. Recently, in early September, a bunch of Bored Ape NFTs was sold for colossal $24 million!
By the way, want Some CryptoPunk or Bored Ape tokens for FREE? Join the Bitcoin Billionaires Community, who's dropping some NFTs today, October 29!
