- A CryptoPunk NFT has sold for $1 million
- Punk 6487 sold for 550 ETH on Larva Labs
- NFTs are suddenly the big craze in the crypto world, although some suspect darker motives behind the huge sales
The NFT craze has soared to new heights after a CryptoPunk catchily named Punk 6487 sold for 550 ETH ($1.05 million) in the early hours of this morning. The bald-headed CryptoPunk has sold for the second time in its four-and-a-half-year existence, earning the previous owner over one million dollars’ profit after less than a year’s ownership. The huge sale, a record for a single CryptoPunk, is an indicator of how hot the NFT craze is right now, but there are some who see a darker side to the sudden explosion.
CryptoPunk Movement Four Years in the Making
The CryptoPunk phenomenon has become something of a posterchild for the NFT movement, taking over CryptoKitties as the foremost proponent of the latest crypto craze. Cryptocurrency is always looking for the next craze, and NFTs were always going to have their moment. That moment has certainly come now, with NFT platforms and indexes seeing record traffic.
NFTs are provably scarce digital assets representing a range of commodities such as artwork, gaming collectibles, and even real estate. NFTs went under the radar for a long time, which is evidenced by the fact that a large majority of the CryptoPunks now selling for six and even seven figures were created way back in 2017.
Farewell, my queen pic.twitter.com/EruVsLfOUu
— DANNY (@seedphrase) February 22, 2021
Darker Motives Behind the Huge Transfers?
Punk 6487 was minted onto the Ethereum blockchain in June 2017 and changed hands for 100 ETH (then $20,857) in May last year to an NFT collector whose 550 ETH offer was accepted 11 days after it was posted, during which time the price of ETH had doubled, taking the value to $1 million. The buyer is seemingly looking to recoup the cost as they have four CryptoPunks for sale totalling over $2 million:
There are some however who don’t buy the idea that the millions of dollars being spent on these NFTs is due to whales wanting a piece of digital art, speculating instead that the transfer of cryptocurrency is for an entirely different product:
What we see: “550 ETH for a Crypto Punk?”
Translation: “550 ETH for [X] kgs of Cocaine” pic.twitter.com/JRXeWvxfJ2
— m o u s e (@matr1xm0use) February 22, 2021
I feel like this is all some kind of money laundering situation.
— Vladimir Botboy (@vodkasodas) February 22, 2021
NFTs, and in particular the CryptoPunk movement, seem to be the latest in a long line of crypto crazes, and while there will undoubtedly be a solid market for them in the future, owners are no doubt making the right move in cashing out now while the going is good.