NFT Trader Buys CryptoPunk Worth $1.5M for $23K: How Did It Happen?

Trader Buys CryptoPunk Worth $1.5M for Just $23K: Reaction in the NFT Community

Among the most expensive NFTs available are CryptoPunks. Some chose to divide ownership of the item by fractionalizing these NFTs because of their worth. A trader paid only 10 ETH ($23,000) for a CryptoPunk with current offers of over 600 Ether, or around $1.5 million, due to smart contract features that allow fractionalization.

One of the few Ape-themed CryptoPunks, Punk #2386, which sported little shades and a headband, was fractionalized through the now-defunct Niftex platform. The anonymous developer 0xQuit claims that in 2020, the NFT was divided into 10,000 pieces and had 257 owners.

NFT Collector gmoneyNFT Fails to Block 10 ETH Shotgun Offer

The smart contracts remained in the blockchain even after the Niftex platform was shut down, enabling a trader to start a process that permits a takeover. According to the developer, the arrangement allowed any shareholder to make a shotgun proposal, enabling them to buy the piece after determining a price. After 14 days, the asset will be transferred if no one contests their bid.

As a result, on August 28, a trader suggested a buyout for under 10 ETH. The shotgun was spotted and sought to be blocked by gmoneyNFT, an anonymous NFT collector, according to the developer. The buyout, however, went through because the NFT trader could not properly make a counterbid.

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