CryptoPunks NFT Recently Worth +$1.5M Sells For Just $23K

On Sep 12, 2024

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Over the past few weeks, CryptoPunks non-fungible token collection has seen increased trading sales volume, with some of its rare tiers selling for millions of dollars. But, a surprising turn of events, a CryptoPunks NFT collection, with a recent high bid of 600 ETH, has just sold for just 10 ETH. In this article, we shall explore what might happen to this NFT in detail.

Punks #2386, worth $1.5M, Sells For Just $23K Million

Data compiled by Etherscan.io, a renowned on-chain block explorer and analytics platform for the Ethereum blockchain, shows that the CryptoPunks #2386 NFT collection sold for 10 ETH worth around $23,000 a few hours ago. This collectible sale has surprised many since the same CryptoPunks NFT collection had a high bid of 600 ETH a few hours ago.

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

Launched sometime in June 2017, CryptoPunks is a non-fungible token collection previously from the digital asset incubation Larva Labs. CryptoPunks NFT collection features a limited edition of 10,000 pixilated profile pictures exclusively hosted on the Ethereum blockchain network. For the past two years, the NFT Collection has been under the good management of Yuga Labs, developer of the Bored Apes Yacht Club and Mutant Ape Yacht Club NFT collection.

Over the past few weeks, CryptoPunks have seen increased sales volume, with some of its rare tiers trading for millions of dollars. Some of the punks that have sold for jay-breaking sums recently include Punk#6915, which sold for over $1.4 million before reselling for over $1.5 million hours last week, Punk #9368, which sold for $1.2 million last week, and many more.

$1.5M Punk Sells For Just $23K – What Went Wrong?

In a September 12 blog post, Quit, a renowned crypto and NFT market investor, used jpeg dealer and solidity developer, and auditor, has shared his insight on what could have happened to the recent drop in sales for Punk #2386 NFT collection. According to Quit, This ape punk was fractionalized into 10,000 ERC-20 tokens on September 09, 2020, and spread out among what is now 257 holders.

Punk 2386, with a current high bid of 600 eth, sold for 10 ETH today.
A combination of clever sleuthing, followed by an unfortunate miscalculation leads to a 7 figure payday for 0x282.
🧵 pic.twitter.com/E29DLQZ0GT
— Quit (@0xQuit) September 11, 2024

The CryptoPunks #2386 fractionalization was done on a now decommissioned platform called Niftex, the contracts that continue to live forever. The setup was that any shareholder could propose a “shotgun,” whereby any shareholder can propose a buyout price, and if nobody opposes counters, they can purchase the asset after 14 days. In a recent episode, 0x282, the new holder initiated a shotgun on August 28, 2024 (14 days ago).

Some shareholders took notice at the time, and at least two shareholders tried to counter the new bid. One shareholder immediately put it off because they thought they had more time, but the other shareholder attempted to block the bid. As the shotgun contract defines, shareholders must purchase the proposer’s shares at a price higher than their proposed price to block the proposed buyout.

The new Punk #2386 owner initially proposed a price of 0.001 ETH per share (10 ETH for all shares). In that case, a shareholder needed to be 0.0010000001. Gmoney, one of the shareholders who tried to block the buyout, submitted a counterclaim of 0.000001 ETH (1000000000000 wei), just short of the requirement. Since nobody could block the shotgun, 0x282 has walked away with the Punk NFT collection.