The $ 532 million deal for a CryptoPunk NFT is actually a scam

To date, CryptoPunks has generated tens of thousands of dollars in sales and over $ 1.5 billion in trading volume. But then a recent half-billion dollar sale threw the community into an uproar.

532 million US dollars ETH for mA CryptoPunk NFT

Whoever made this purchase is not a legitimate transaction. CryptoPunk # 9998 triggered a sell alert shortly before 3:00 p.m. yesterday with a trading price of over 124,457 ETH, or then 532 million US dollars.

The highest CryptoPunk sale ever is just $ 11.8 million and the only current NFT record is just over $ 69 million for Beeple digital artwork. Some suspect that this is a money laundering transaction that may be hiding illegal profits from cryptocurrencies.

However, on closer inspection, the transaction appears to have come from someone who toying with DeFi Quick Loans in their spare time. In other words, it is not a scam.

“In short, someone bought this punk with borrowed money and paid back the loan in the same transaction,” tweeted CryptoPunks inventor Larva Labs. “Some of the recent major tenders have also been run in a similar manner. Ether is provisioned and removed in a single transaction. Offers are technically valuable in the short term, but can never be accepted. ”

The Larva Labs trading platform is still listing the sale, but it also reveals that the buyer’s wallet eventually moved the NFT back into the seller’s wallet.

Robert Miller, manager at research organization Flashbots, tweeted a more detailed description of what happened. The first contract put CryptoPunk up for sale, then the second took out a huge amount of money through a quick loan and bought it. At this point, the first contract sends the money back to the second contract, and then the loan is paid back.

Exactly why It looks like someone is transferring a range of cryptocurrencies and a relatively low transaction fee of around $ 800. In fact, if you take a closer look, Etherscan will see a note in the entry field of the transaction if you view it with the UTF-8 display option. Larva Labs tweeted that filters will be added to the transaction notifications so that such invalid, rushed credit transactions are no longer shared. And CryptoSlam, a popular NFT analytics platform, says it will remove trades from its record.

In other words, it’s almost like the $ 532 million sale of CryptoPunk never happened. But it’s sure to get people talking.

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mango

After decryption

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