CryptoPunk NFT Sale for $56.3 Million Raises Red Flags, Suspected as Promo Tactic for Upcoming Meme Coin

Punk 1563, depicting a pixelated woman with dark hair and blue eyes, was recently sold for 24,000 ether (ETH), worth around $56.3 million.

A recent sale of a CryptoPunk NFT has garnered attention for its astronomical price tag of $56.3 million. However, closer examination reveals a promotional tactic for an upcoming meme coin called “Kamala Harris Punk.”

The NFT Sale

Punk 1563, an NFT depicting a pixelated woman with dark hair and blue eyes, was recently sold for 24,000 ether (ETH), which is currently valued at around $56.3 million. But several oddities in the sale have raised questions about its authenticity.

Punk 1563 bought for 24,000 ETH ($56,292,000.00 USD) by 0x9cbb3d from 0xba1349. https://t.co/FqDvGZvg05 #cryptopunks #ethereum pic.twitter.com/hWimHKYb0x

— CryptoPunks Bot (@cryptopunksbot) October 3, 2024

The NFT was last sold for under 30 ETH, roughly $69,000, a month ago, indicating that this latest transaction represents a markup of nearly 81,000% compared to previous listings. Additionally, Punk 1563 lacks any rare features, typically placing it at the lower end of the price range for the collection.

This sale was also facilitated through flash loans, which are uncollateralized crypto loans that must be repaid within the same transaction, according to on-chain data. In this case, the buyer borrowed 24,000 ETH from the DeFi protocol Balancer, which was then repaid by the seller. Although the NFT was transferred to a different wallet, no actual profit was realized, and the transaction only incurred network fees.

Promotional Tactic for Meme Coin Pre-Sale

Further investigation by anonymous on-chain sleuth 0xQuit suggests that the flash loan is connected to the anticipated launch of the Kamala Harris Punk meme coin, indicating that the sale may have been designed to generate hype for the token’s upcoming pre-sale.

According to 0xQuit, Punk 1563 will be sold to the highest bidder after a week-long pre-sale phase.

“The contract is set to accept the highest bid for Punk #1563 after a seven-day period, as long as the bid meets or exceeds the amount raised in the pre-sale,” they explained.

They added that the developer would receive 10% of the token supply and 10% of the funds raised from both the pre-sale and the Punk sale, while the remaining proceeds would be combined with a new batch of tokens to establish a liquidity pool on Uniswap.

However, this grand plan comes with risks. They are hoping to earn more than the NFT’s actual value, which is currently estimated at around $63,400. The blockchain detective believes that if the plan fails, the contract can be upgraded, which offers some protection.

In summary, OxQuit described the entire transaction as a “psyop,” asserting it is a marketing tactic for a pre-sale rather than a genuine NFT sale. They also suggested it could be a political statement given the “name and the clown makeup.”

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