Fast Facts
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An anonymous NFT collector incurred a staggering $10 million loss after selling the rare CryptoPunk #3100 for 4,000 ETH ($6.07 million), after previously purchasing it for 4,500 ETH ($16 million) in March 2022.
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CryptoPunk #3100, one of only nine Alien Punks, is recognized for its distinctive blue skin and bandana, making it highly sought after in the NFT market.
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Despite being iconic, the CryptoPunks collection has faced a significant downturn, with prices dropping nearly 43% in the last three months, currently averaging around $71,031 compared to $400,000 at its peak in November 2021.
- The sale highlights the impact of Ethereum’s price decline on NFTs, as even top-tier digital collectibles like CryptoPunks are not immune to broader market trends.
NFT Trader Suffers $10M Loss After Sale of Rare Alien CryptoPunk
An anonymous NFT collector faced a significant setback after selling a rare CryptoPunk on Thursday. The transaction involved Punk #3100, which changed hands for 4,000 ETH, equal to approximately $6.07 million. This sale occurred on the official CryptoPunks marketplace.
Notably, Punk #3100 is one of just nine Alien Punks in the original collection of 10,000 created by Larva Labs in 2017. Its distinctive blue skin and bandana contribute to its status as one of the most sought-after NFTs.
However, the $10 million loss resulted from a drop in Ethereum’s price over the past year. Blockchain data from Arkham Intelligence reveals that the NFT previously sold for 4,500 ETH in March of last year, valued at more than $16 million at that time. This earlier sale ranks as the third-most expensive single NFT transaction recorded.
Market conditions have impacted all CryptoPunks, including the most coveted Alien variants. Despite their rarity, CryptoPunks have suffered a nearly 43% decline in asking prices over the last three months. Currently, the average price stands at $71,031, down from peaks exceeding $400,000 in November 2021.
The parties involved in the recent sale remain unidentified, though records show that the purchasing wallet received 4,001 ETH from an account labelled "Coinbase Prime 2" just prior to the transaction.
CryptoPunks symbolize early interest in the NFT market. In 2022, Yuga Labs acquired the intellectual property rights to the collection after it originally launched as a free offering. Earlier this year, there was speculation about further sales of the product’s IP, but Yuga Labs co-founder Greg Solano has refuted these claims, stating there are no plans to sell.
As the NFT market continues to evolve, it faces both challenges and opportunities for recovery. The fluctuations in value highlight the complexities of digital assets. Thus, they remain a focal point for innovation in technology development, particularly in how digital ownership and value are perceived.
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