NewsAug, 2021

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A Costly blunder -$69,000 CryptoPunk gets sold for less than a cent

On August 4th, a CryptoPunk worth more than $69,000 was sold for less than a cent in what looks to be an expensive error.

The CryptoPunks are a set of 10,000 NFTs with a pixelated human, ape, zombie, and extraterrestrial faces. Punk 3860, a male Punk with a cigarette, huge shades, a shadow beard, and a mohawk, was the CryptoPunk in question. On July 29, it was last sold for $69,369.

The owner meant to sell the Punk in a safelist transaction for under a cent, as opinionated by Jonathan Clark, co-founder of DeFi platform Float Capital but instead made it accessible on the general market. 

This means that anyone keeping a close eye on the market could have spotted the listing going public and snapped up Punk.

In this case, however, someone made sure that they beat everyone to the punch. According to blockchain data, the buyer spent 22 ETH ($57,000) to bribe an Ethereum miner to prioritize their transaction in a block. They did so using the communication protocol Flashbots, which is commonly used to extract MEV.

There have been a few other bids for the NFT, although some of them may have been competing bids trying to buy it before it was sold. The max offer so far is 35 ETH ($91,000).

The buyer has put the NFT for sale for 52 ETH ($131,000). If somebody chooses to buy it at that price, the original buyer will end up with a profit of $74,000.