A CryptoPunk non-fungible token (NFT) reportedly sold for a staggering $56.2 million, raising eyebrows across the NFT space. However, industry insiders believe the transaction may be nothing more than an elaborate marketing stunt designed to promote a new memecoin.
A Record-Breaking Sale—Or Not?
The sale of CryptoPunk #1563, which reportedly fetched more than double the highest price paid for a CryptoPunk during the NFT boom in February 2022, has attracted widespread attention. However, on-chain data tells a different story. It appears the sale may not be what it seems, casting doubt on the legitimacy of the $56 million price tag.
Flash Loan Trickery
A deeper investigation into the transaction reveals that the “buyer” used a 24,000 ETH flash loan from the automated market maker (AMM) protocol Balancer to acquire the NFT. Flash loans are essentially instant, uncollateralized loans that must be repaid in the same transaction, commonly used in complex DeFi maneuvers.
In this case, after the purchase was executed, the “seller” sent the 24,000 ETH right back to Balancer. Despite the NFT changing hands, the buyer only spent around $54 in gas fees, raising questions about whether this sale was a legitimate purchase or simply a ploy to attract attention.
Marketing Stunt for a Memecoin?
Pseudonymous crypto commentator 0xQuit has pointed out that this transaction may be a publicity stunt designed to promote a new memecoin dubbed “Kamala Harris Punk.” In an Oct. 3 post on X (formerly Twitter), 0xQuit explained that Punk #1563 will be put up for auction in seven days, with the highest bidder taking home the NFT. The developer behind the stunt is expected to receive 10% of the token supply, along with 10% of the funds raised from the presale and sale of the NFT.
According to 0xQuit, the massive ETH figure involved in the sale was likely a “psyop” to generate buzz around the presale. The punk will be auctioned with a minimum bid equivalent to the amount raised during the presale.
“Also, maybe a political statement given the name and the clown makeup,” 0xQuit added, alluding to the punk’s distinctive appearance.
This isn’t the first time flash loans have been used to create eye-popping NFT sales. In 2021, an investor utilized a $532 million flash loan to “buy” CryptoPunk #9998, only to quickly repay the loan. While this maneuver initially made headlines, CryptoPunks creator Larva Labs did not recognize the sale as legitimate—a position that has since been adopted by other major NFT platforms.
