$1.5M CryptoPunks NFT Shocks with Sale Price of Just $23K

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In recent weeks, the CryptoPunks non-fungible token collection has witnessed a significant surge in trading volume, with some of its rare pieces fetching millions. However, in an unexpected twist, a CryptoPunks NFT that recently had a high bid of 600 ETH sold for merely 10 ETH. In this article, we will delve into the implications of this sale.

Punks #2386, valued at $1.5M, Sold For Just $23K

According to data from Etherscan.io, a well-known block explorer and analytics tool for Ethereum, the CryptoPunks #2386 NFT recently sold for 10 ETH, roughly equivalent to $23,000. This sale has taken many by surprise, especially considering that this same NFT had a high bid of 600 ETH just hours earlier.

Punk 2386 has a new bid of 600 ETH ($1,405,818.02 USD) placed by 0xb9eb79. https://t.co/1g0pmuZFkD #cryptopunks #ethereum pic.twitter.com/3A629r0EP0

— CryptoPunks Bot (@cryptopunksbot) September 11, 2024

CryptoPunks, launched in June 2017, is a collection of non-fungible tokens from digital asset incubator Larva Labs. The collection consists of 10,000 unique pixelated profile images that are exclusively hosted on the Ethereum blockchain. For the last two years, this collection has been managed by Yuga Labs, the creators behind the Bored Apes Yacht Club and Mutant Ape Yacht Club NFT collections.

Recently, the CryptoPunks have seen a rise in sales activity, with some rare punks being traded for exorbitant amounts. Notable sales include Punk #6915, which was sold for over $1.4 million before being resold for over $1.5 million last week, and Punk #9368, which also fetched $1.2 million recently.

$1.5M Punk Sold For Only $23K – What Happened?

In a blog post dated September 12, Quit, a well-known crypto and NFT market analyst, shared insights into the reasons behind the drastic price drop for the Punk #2386 NFT. Quit noted that this punk was fractionally divided into 10,000 ERC-20 tokens on September 9, 2020, and distributed among 257 holders.

Punk 2386, with a current high bid of 600 ETH, sold for 10 ETH today.

A mix of strategic sleuthing and unfortunate miscalculation led to a seven-figure payout for 0x282.

pic.twitter.com/E29DLQZ0GT

— Quit (@0xQuit) September 11, 2024

The fractionalization of CryptoPunks #2386 took place on a now-defunct platform known as Niftex, where the contracts operate indefinitely. Shareholders were able to propose a “shotgun” buyout price, and if no one contested it, the asset could be purchased after a two-week period. Recently, 0x282, the new owner, triggered a buyout proposal on August 28, 2024 (14 days prior).

At that time, some shareholders noticed, and at least two attempted to contest the new bid. One shareholder withdrew their counter because they believed they had more time, while another tried to block the bid. The shotgun contract stipulates that shareholders must buy the proposer’s shares at a price exceeding the proposed buyout price to counter.

The new owner of Punk #2386 initially proposed a price of 0.001 ETH per share (10 ETH for all shares). Therefore, a shareholder needed to bid at least 0.0010000001 ETH. One of the shareholders, Gmoney, submitted a counter of 0.000001 ETH (1,000,000,000,000 wei), just shy of the requirement. As no one was able to block the shotgun bid, 0x282 successfully acquired the Punk NFT collection.

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