Early this morning, CryptoPunk numbered#2386completed a transaction on the chain, with the transaction price being only 10 ETH.
Author: Azuma (@azuma_eth), Odaily Planet Daily. Ported by: Bosen Quantitative Consultant Xiao Sun (bosen0722)
It’s 10 ETH, not cheap.
This price is far below market expectations, especially for the rare "Ape" CryptoPunk. The current floor price of the series is still 30.45 ETH. CryptoPunk#2386is one of the 24 rare "Ape" models, which are usually out of stock.
Shockingly, during the NFT boom in 2022, CryptoPunk#2386received an offer of 1,800 ETH. Within a few hours after the change of hands, the market's offer for it quickly rose to 600 ETH, and the buyer could get up to 60 times the profit just by changing hands. This sparked heated discussions in the industry, and many people called the transaction a "big robbery."
Background of the event and Niftex’s “fragmented” model
The origin of the matter can be traced back to 2020, when the NFT market was booming and liquidity issues became the focus. A protocol called Niftex increased the liquidity of NFTs by splitting them into ERC-20 tokens. CryptoPunk#2386was then divided into 10,000 "fragments" at a valuation of 450 ETH and held by 257 users.
As the NFT market cooled, Niftex stopped operating, but its smart contracts are still running, and CryptoPunk#2386is also hosted there. According to Niftex's rules, users can redeem NFTs in two ways: one is to collect all fragments, and the other is to initiate a "forced purchase" offer. If no other fragment holders object within 14 days, the initiator can purchase the NFT at the offer.
"Forced purchase" of low-price purchases
On August 28, a user with an address starting with 0x282 made a "forced purchase" offer to the Niftex contract for a total of 10 ETH (0.001 ETH per shard). Since Niftex was no longer in operation, most shard holders did not notice the offer. But at least two holders noticed the development, one of whom did not take action, and the other holder, @gmoneyNFT, tried to object.
According to the rules, the objector must purchase the fragment at a price higher than the original offer, but the price proposed by @gmoneyNFT did not exceed the original offer, and the objection failed. In the end, 0x282's offer was successfully passed, and the rare CryptoPunk#2386was successfully purchased for 10 ETH, which was about 70% lower than the market floor price.
Conclusion and subsequent impact
At present, the identity of 0x282 has not been made public, and it is uncertain whether it will accept the market offer of 600 ETH. This transaction highlights some loopholes in the NFT market, and also reflects the potential risks and opportunities of fragmented assets.
What should ordinary people do?
[No investment and financial advice, the cryptocurrency world is risky, so be careful when investing! ]
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