Rare

Punk

A CryptoPunk worth millions was acquired for a fraction of its value through a smart contract, surprising onlookers who described what happened as either a “heist” or a brilliant play.&nbsp;
CryptoPunks are some of the most expensive non-fungible tokens (NFTs) around. Because of their value, some decided to fractionalize these NFTs, splitting ownership of the piece.&nbsp;
With smart contract mechanisms allowing fractionalization in place, a trader acquired a CryptoPunk with current bids of over 600 Ether (<a data-ct-non-breakable="null" href="https://cointelegraph.com/ethereum-price" rel="noopener noreferrer nofollow" target="null" text="null" title="null">ETH</a>), worth about $1.5 million, for only 10 ETH ($23,000).&nbsp;
<h2 id="rare-ape-cryptopunk-sells-for-10-eth">Rare Ape CryptoPunk sells for 10 ETH</h2>
Punk #2386, a rare Ape-themed CryptoPunk with a headband and small shades, was one of the NFTs fractionalized through a now-defunct platform called Niftex. According to the pseudonymous developer 0xQuit, the NFT was <a data-ct-non-breakable="null" href="https://x.com/0xQuit/status/1833981561676726585" rel="noopener noreferrer nofollow" target="null" text="null" title="null">split</a> into 10,000 parts with 257 owners in 2020.&nbsp;
<figure><img alt="Trader’s acquisition of $1.5M CryptoPunk for $23K raises eyebrows" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0191e54b-873f-7533-9cdf-8b2519107350">
 <figcaption style="text-align: center;">
 CryptoPunk #2386 was acquired for only 10 ETH. Source: CryptoPunks
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While the Niftex platform was decommissioned, the smart contracts continued to exist in the blockchain, allowing a trader to trigger a mechanism that allows a buyout.&nbsp;
The developer explained that the setup allowed any shareholder to propose a “shotgun,” giving them a chance to purchase the piece after setting a price. If no one counters their bid, the asset will be transferred after 14 days.&nbsp;&nbsp;
Because of this, a trader proposed a buyout for only 10 ETH on Aug. 28. The developer explained that pseudonymous NFT collector gmoneyNFT noticed and attempted to block the shotgun. However, the NFT trader could not set a proper counterbid, so the buyout proceeded.&nbsp;
<figure><img alt="Trader’s acquisition of $1.5M CryptoPunk for $23K raises eyebrows" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0191e54c-96c2-7c04-9a87-51c6113b8eae">
 <figcaption style="text-align: center;">
 Source: <a data-ct-non-breakable="null" href="https://x.com/tropoFarmer/status/1833967110592041014" rel="noopener noreferrer nofollow" target="null" text="null" title="https://x.com/tropoFarmer/status/1833967110592041014">TropoFarmer</a>
 </figcaption>
</figure>
The NFT was acquired at only a fraction of its actual value. According to the CryptoPunks site, the NFT had <a data-ct-non-breakable="null" href="https://cryptopunks.app/cryptopunks/details/2386" rel="noopener noreferrer nofollow" target="null" text="null" title="null">bids</a> of about 900 ETH (about $2 million) in January. On Sept. 6, CryptoPunk #6915, an Ape-themed Punk with a cap, an earring, and an eye patch, <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/rare-ape-cryptopunk-sells-1-5m" rel="noopener noreferrer nofollow" target="null" text="null" title="null">sold for $1.5 million</a>.&nbsp;
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/nft-sales-august-2024-decline" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Monthly NFT sales fall below $400M, marking yearly low</a>
<h2 id="nft-community-surprised-with-steal-of-the-century">NFT community surprised with “steal of the century”</h2>
Community members expressed different opinions about the CryptoPunk play. One community member <a data-ct-non-breakable="null" href="https://x.com/niftynaut/status/1833951284111802552" rel="noopener noreferrer nofollow" target="null" text="null" title="null">described</a> the sale as “one of the biggest CryptoPunk heists of all time,” while 0xQuit <a data-ct-non-breakable="null" href="https://x.com/0xQuit/status/1833981904456139199" rel="noopener noreferrer nofollow" target="null" text="null" title="null">called</a> it the “steal of the century.”&nbsp;
<figure><img alt="Trader’s acquisition of $1.5M CryptoPunk for $23K raises eyebrows" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0191e54b-08b5-748b-a20a-abac9465e9bc">
 <figcaption style="text-align: center;">
 Source: <a data-ct-non-breakable="null" href="https://x.com/gmoneyNFT/status/1834011212654199214" rel="noopener noreferrer nofollow" target="null" text="null" title="https://x.com/gmoneyNFT/status/1834011212654199214">gmoneyNFT</a>
 </figcaption>
</figure>
However, gmoneyNFT, who tried to block the sale with a counterbid, believes the trader played by the rules.&nbsp;
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/painful-nft-creator-nate-alex-70-cryptopunks/" rel="noopener noreferrer nofollow" target="null" text="null" title="null">‘Painful to think about’: NFT Creator Nate Alex on selling 70 CryptoPunks too early</a>

Trader’s acquisition of $1.5M CryptoPunk for $23K raises eyebrows

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