How Smart Contract Logic Could Make You a Millionaire
Smart contracts have the potential to unlock unprecedented opportunities in the world of NFTs. A recent example highlights just how powerful these digital agreements can be. Consider the case of CryptoPunk #2386, a highly sought-after NFT, valued between $1.5M and $2M, which was acquired for just $23K. Here’s how smart contract mechanics played a crucial role.
The CryptoPunk Opportunity
CryptoPunks, known for their rarity and high value, often trade between 30ETH and 550ETH. Punk #2386, which features a rare ape attribute, was fractionalized in 2020 by Nitfex, a protocol that divided ownership into 10,000 ERC-20 tokens. Despite Nitfex’s shutdown, the smart contract governing these tokens remained active, creating a unique opportunity for savvy investors.
Exploiting Smart Contract Functions
One function, "lockShardsAndClaim," allowed token holders to propose a "Shotgun" offer to buy out other shareholders. If no counteroffers were made within 14 days, the NFT would be transferred to the proposer. On August 28, address 0x282a offered 10 ETH for Punk #2386, about 0.001 ETH per share. The minimum counteroffer was 1,000,000,010,000 Wei, but only 1,000,000,000,000 Wei was countered. A mere 100,000 Wei (worth about $0.00000000000001) could have blocked the offer, but it was insufficient, allowing the sale to proceed.
Key Takeaway
This scenario demonstrates the immense potential of understanding and interacting with smart contracts. Even after platforms shut down, smart contracts remain accessible on the blockchain, offering unique investment opportunities. This case emphasizes the importance of grasping smart contract logic and acting swiftly to capitalize on such opportunities.
