A CryptoPunk NFT has made headlines for being sold for $56.3 million.

This comes amid claims that it was a carefully orchestrated promotional tactic for an upcoming meme coin called “Kamala Harris Punk.”

The NFT Sale

Punk 1563, depicting a pixelated woman with dark hair and blue eyes, was recently sold for 24,000 ether (ETH), worth around $56.3 million. However, several red flags raise questions about the legitimacy of the sale.

Punk 1563 bought for 24,000 ETH ($56,292,000.00 USD) by 0x9cbb3d from 0xba1349. https://t.co/FqDvGZvg05 #cryptopunks #ethereum pic.twitter.com/hWimHKYb0x

— CryptoPunks Bot (@cryptopunksbot) October 3, 2024

Just last month, the NFT was sold for under 30 ETH, roughly $69,000, indicating that this latest transaction represents a markup of nearly 81,000% compared to previous listings. Punk 1563 also lacks any rare features, typically placing it at the lower end of the price range for the collection.

On-chain data also reveals that this sale was facilitated through flash loans, which are uncollateralized crypto loans that must be repaid within the same transaction. In this case, the buyer borrowed 24,000 ETH from the DeFi protocol Balancer, which was then repaid by the seller. Although the NFT was transferred to a different wallet, no actual profit was realized, and the transaction only incurred network fees.

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