Do you remember games from the early 21st century days? The graphics were not that good at that time, and the graphics we have today are a huge leap. However, people are still attracted by nostalgic graphics, where Crypto Punk NFT comes into play. You might think that just a pixelated drawing could be worth millions of dollars.
CryptoPunk NFT is setting several records for being the most expensive NFT collection. So, here we will be discussing all the interesting facts about it.
Why Crypto Punk NFT?
For most people, the first impressions of the CryptoPunk NFT look like some pixelated digital art or art from nostalgic games. However, there is no wrong in thinking that because the CryptoPunk NFT is 8-bit artwork, that makes no sense to some people. However, it is even going to end soon because of being old-fashioned to some people.
While the NFTs are directly related to the Metaverse space, different NFT collections with better graphics seem to have a better future in the market. So, why CryptoPunk NFT? Well, this is one of the first NFT collections that came out, and in 2017 this was launched.
This NFT collection consists of 10,000 unique digital characters only. The best part is that each of them follows the same basic DNA of being 8-bit digital art, while their uniqueness makes them attractive.
How Crypto Punk NFT is being sold for millions of dollars?
Instead of being a standalone NFT art, the CryptoPunk NFT works as a collection with 10,000 digital artworks in one collection. Moreover, it is one of the original NFT collections that came out early.
Different factors are helping it set records of being sold for millions of dollars. Looking at the facts and figures, CryptoPunk NFT is setting new records with passing the time. It has not stopped beating its records, and now its worth has gone over $2.61 billion, which is a record in itself. The real question here is, what factors cause this NFT project to become so successful.
Being an old NFT collection
One of the reasons this NFT collection is very successful is that it is an OLD NFT. This NFT belongs to the time when there was Bitcoin everywhere. This was the time in 2017 when the whole world of crypto was just in the beginning stages. As CryptoPunk NFT belongs to that time, it has a huge fan following over different platforms. It is why people are still looking to buy it for millions.
Some say that there were some publicity stunts.
If you look at the process followed for the discourse of NFTs and NFT collections, there will be 2 main platforms used. One is Twitter, while the other one is discord. It is said that the owner was driving the price up by buying and selling the NFTs from this collection using different wallets.
Now that the prices have gone up, it has become an expensive NFT collection, and the prices are only going up with every other sale helping the CryptoPunk NFT set even higher records.
Is Crypto Punk NFT setting new records?
Yes, CryptoPunk NFT is setting new records for sure, and the CryptoPunk NFT 7523 that was thought to be the most expensive NFT from this collection is not the most expensive anymore. It was sold for $11.8 million, and now this sale is surpassed by the CryptoPunk NFT 9998, which has been sold for over half a billion.
This alone NFT has given a huge rise to the CryptoPunk NFT project’s total price setting a new record. Another one on the list is the CryptoPunk NFT 5822 sold for 8000 Ethereum. According to the exchange rates at the time of the sale, this deal was made with over $23 million making another record.
How and who set this new record of a CryptoPunk NFT sale for over half a billion?
While some say that this transaction was massive money laundering, some say that it was a fake transaction. However, in reality, this was a real transaction that was planned very carefully. This transaction was an amazing example of how modern-day traders work.
- So, what happened was that the owner of CryptoPunk NFT was having a little fun. They did a wash trade where the buyer and seller were the same. This was done with the help of a flash loan. The transaction was completed, the money was transferred over the Ethereum blockchain.
- As soon as the transaction was complete, the loan was paid back, and, in this way, the value of this NFT was over half a billion without doing anything but taking and returning a loan.
- However, if you are thinking clever and want to do this yourself, you need to know that these flash loans are only available for manipulative purposes. These are only available to launch an exploit, but, in such transactions, this wash trading example looks like a perfect cromulent use of this loan.
Well, one thing to note is that this is not the first time Flash loans have been used this way, but this was the first time for an event of this large scale to happen.
While things are already booming, it is just the beginning of things. In the coming years, we can see a lot of advancements and interconnections between NFTs, Metaverse, Cryptocurrency, and all such things. An NFT that costs a million dollars today might mean billions tomorrow. Similarly, it can be nothing but digital art. However, it is possible to make your fortune with this amazing trend in today’s world.
The Crypto Punk NFT collection is a clear example of how you can make millions in no time if you can buy a CryptoPunk NFT today. This was all about how this NFT collection is making records of being sold as the most expensive NFT in the world. Make sure to leave any of your queries in the comments section.