On paper, it’s the biggest NFT sale of all time. In fact it’s the biggest sale of any piece of art of all time. Buuuuut… there’s a catch. On Thursday a piece of Crypto Punk Art sold for 124,457 Etherium, which is the equivalent of US$532 million.
While it can be tricky to track who buys what when it comes to cryptocurrency transactions, we do know that whoever bought the NFT, is the same person who sold the NFT. A person can own as many crypto wallets as they want, and while we can’t see who owns any given wallet, we can see where the money moves. When the NFT was bought, money was transferred from one wallet, to another and then, almost immediately transferred back to the original wallet.
So where did the money come from? Well it’s what’s called a Flash Loan, basically, It’s a loan that can only be delivered under a specific set of circumstances. You can give a loan, only so long as you already have a buyer lined up. Well that’s what happened here, except the loan was given and received by the same person.
But what’s the point? Well without knowing who the buyer (and seller) is we can only speculate, but it’s likely this was an attempt to drum up interest in the NFT, hopefully more eyes on it will lead to a higher selling price.
NEXT Brekkie team Owen and Charlie have been hard at work all week building their very own Western Sydney themed NFT. It sold today, not quite for $530 million, but give it a listen, you might be surprised by how much they earned: