Ethereum NFT Heist: Shocking Sold for Only 10ETH!
On Wednesday, the NFT community witnessed a noteworthy event: CryptoPunk 2386, an NFT originally worth around 600 ETH (approximately $1.5 million), was acquired for just 10 ETH (over $23,000). This large difference in value highlights the often volatile nature of the NFT market and underscores the importance of liquidity and market exposure.
The impact of fractional ownership on NFT transactions
CryptoPunk 2386’s previous ownership structure played a crucial role in this acquisition. The NFT has been split using a platform called Niftex, which allows ownership to be divided into 10,000 ERC-20 tokens. This approach enables multiple investors to share ownership of high-value NFTs, reflecting a trend during the NFT boom where splitting assets became a favored way to invest. However, as Niftex ceased operations, some holders were left stranded and unable to effectively trade their shares.
A distinctive feature of this acquisition is the activation of the acquisition functionality embedded in the CryptoPunk 2386 smart contract. The mechanism allows any shareholder to make a "shotgun" offer and, if no counterproposal emerges within a specified time frame, the asset can be acquired at the proposed price.
On August 28, an anonymous investor launched such an offer at an attractive price, possibly due to poor visibility of the timer countdown. This decision translated into an opportunity that others failed to take advantage of due to lack of awareness.
