CryptoPunk #2386 Sold for $23K Despite $1.5M Valuation in NFT Shockwave

WhatsApp Group Join Now
Telegram Group Join Now

The jaw-dropping sale of CryptoPunk #2386. This story has it all—NFTs, forgotten websites, and a sale price that shocked the entire crypto community. So, how did a $1.5 million CryptoPunk end up selling for just over $23,000?

CryptoPunks, as most of you probably know, are some of the most valuable NFTs in the Ethereum world. These iconic 24×24 pixel avatars have taken the market by storm over the years. And CryptoPunk #2386?

Well, it’s one of only 24 ape-themed Punks out of the entire collection of 10,000. So, you can imagine how prized this little pixelated ape is! Just last week, a similar Punk sold for nearly $1.5 million.

But here’s where it gets interesting. Punk #2386 had been fractionalized on a platform called Niftex. For those new to this, fractionalizing an NFT means breaking its ownership into smaller parts—so more people can buy shares and have a piece of the action. Pretty cool, right?

Now, back in 2020, the owner of this Punk split it into 10,000 shares. That’s right—10,000 individual ERC-20 tokens. But here’s the kicker: Niftex, the platform that hosted these shares, went defunct. And with it gone, the fractional shares became stuck in limbo.

But because this is the blockchain, nothing’s ever truly gone. The contract remained live. And here’s where the story takes a turn. Someone spotted an opportunity—a loophole of sorts—and triggered a buyout feature embedded in the smart contract. This buyout process is known as a ‘shotgun’ mechanism.

Here’s how it works: any shareholder can propose a buyout price. If no one counters the bid within 14 days, the buyer gets the NFT. In this case, someone proposed a buyout price of just 0.001 ETH per share—that’s 10 ETH for all 10,000 shares—about $23,000 in total.

Now, some shareholders like pseudonymous NFT investor and 9dcc founder Gmoney saw this coming and tried to stop it. But unfortunately, his counterbid fell short. He thought he had blocked the deal, but in the end, the buyer won.

And just like that, the buyer acquired a $1.5 million Punk for a fraction of its value! The NFT community was stunned. @0xquit, a smart contract developer, called it ‘the steal of the century.’ And with good reason—shortly after, Punk #2386 received a bid for 600 ETH, which is roughly $1.5 million. A potential 60x return on investment.

Many on Twitter framed this as a ‘heist.’ But Gmoney, one of the shareholders who tried to stop the sale, didn’t see it that way. He said, and I quote, ‘If you want decentralized systems, you have to take the good with the bad. It’s part of the game.

And he’s not wrong. Decentralized systems are designed to work without intermediaries, and in this case, the blockchain worked exactly as it was supposed to.”

So, what do you think? Was this a brilliant strategic move or a flaw in the system? Either way, it’s a fascinating reminder of the immutable nature of blockchain—once something is set in motion, it’s almost impossible to stop.

Let us know your thoughts in the comments below.

______________________________________________________________________
You can follow our news on Google NewsTelegramTwitter, Facebook  & Coinmarketcap .

Disclaimer: Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before investing in any cryptocurrency.

Follow us on our profiles

Stay updated with us across all our channels!

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your research before investing in any cryptocurrency.

Related Posts

Hiren is a SEO Expert and content writer with a passion for all things cryptocurrency. With two years of experience in the Crypto industry, He has a wealth of knowledge about blockchain technology and the crypto market. He is always on the lookout for new and exciting blockchain projects to work on and is dedicated to helping these projects succeed in the ever-evolving crypto landscape.