In a move that has left the NFT world buzzing, a trader managed to acquire a rare Ape-themed CryptoPunk valued at $1.5 million for just 10 ETH, or roughly $23,000. This unexpected transaction has sparked mixed reactions, with some hailing it as a savvy maneuver while others are calling it a “heist.”
CryptoPunks, among the most sought-after NFTs, are renowned for their high valuations. With prices often in the millions, many NFTs from the collection have been fractionalized, allowing ownership to be split among multiple parties. One such piece, CryptoPunk #2386, a rare Ape-themed NFT, became the center of a recent debate after being bought at a fraction of its worth due to a little-known smart contract mechanism.
The Shotgun Buyout: How It Happened
CryptoPunk #2386, characterized by its headband and small shades, was originally fractionalized into 10,000 shares via Niftex in 2020, with ownership divided among 257 holders. Although the Niftex platform has since ceased operations, the smart contracts associated with the NFT remained active on the blockchain.
The trader in question utilized a feature called a “shotgun buyout,” which allows any shareholder to propose a purchase of the entire asset by setting a price. If other shareholders don’t counter the bid, the sale goes through. On August 28, the trader proposed a buyout of CryptoPunk #2386 for 10 ETH. Despite efforts by NFT collector gmoneyNFT to counter the bid and block the sale, the buyout went uncontested, and the transfer was completed after 14 days.
This transaction took place despite the fact that similar CryptoPunks had current bids far higher. As recently as January, CryptoPunk #2386 had bids of 900 ETH (approximately $2 million).
Mixed Reactions From the NFT Community
The NFT community is divided over the incident. Some have described the acquisition as “one of the biggest CryptoPunk heists of all time,” while others, including pseudonymous developer 0xQuit, hailed it as “the steal of the century.”
Influential NFT figures, including gmoneyNFT, who tried to block the sale, admitted that the trader played by the rules. While some believe this incident highlights flaws in fractionalization mechanisms, others see it as a reminder of the unpredictable nature of the decentralized market.
Broader Context: CryptoPunk Market Trends
While this $23,000 acquisition raised eyebrows, it isn’t the only major CryptoPunk sale in recent times. CryptoPunk #6915, another rare Ape-themed NFT, recently sold for $1.5 million. Despite the cooling NFT market, CryptoPunks remain a coveted collection, with recent sales indicating that high-value transactions are still occurring.
CryptoPunk #6915, featuring a cap, an earring, and an eye patch, is one of the 24 rare Ape Punks minted by Larva Labs. The collector who acquired the piece paid 620 ETH ($1.48 million) in a transaction that highlighted the enduring value of the collection.