Insights

This NFT Just Pulled a Half Billion Dollar Trick

On Friday a CryptoPunk NFT was said to have sold for $532.41 million. A Twitter bot built to track sales sent out a tweet that Punk #9998 was sold for 124,457.07 ether (ETH) or $532.414 million. It looks like the whole thing however was just a big publicity stunt. 

The chief executive officer of Coin Crunch Naimish Sanghvi noticed that the NFT moved back to the original wallet, meaning the seller and buyer are the same person. 

“Flash loan means that within a single block, one can raise as much funds as they want, provided they borrow and repay the amount within the same transaction. A block can have multiple transactions, and since ethereum is a smart-contract based blockchain, an individual can do multiple transactions within one transaction,” said Sanghvi.

“So, in this instance, the individual borrowed more than 124,000 ETH from different sources within the same flash loan, sold the CryptoPunk and then bought the NFT back to the original account and then repaid the loan. Everything was done within the same transaction,” he therefore was able to conclude that The NFT Punk #9998 is with the same exact person who had it before.

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