Someone Just Bought a Crypto Punk for 10 ETH: Are NFTs Back on the Menu?

CryptoPunk 2386, prized for its Ape feature , was snapped up at a massive 99% discount in a sketchy new NFT loophole.

It’s not a good look for the NFT space, a sector that is already on its deathbed. Let’s dive into how this happened.

The Sneaky NFT Loophole: A Costly Oversight

I knew a rich person who made it in crypto. He said money doesn’t matter: “I’d rather learn a foreign language than have money, etc.” He went all into NFTs and held them until they were worthless. He went mad and clearly didn’t believe whatever nonsense he was saying before.

That leads us to CryptoPunk 2386.

CryptoPunk 2386, once tagged at $3.2 million, shockingly changed hands for a mere $23,000. This eyebrow-raising deal hinged on a loophole in the fractional NFT system tied to the defunct NIFTEX platform.

Split into 10,000 parts in 2020; the Punk sat in escrow after NIFTEX went under. The loophole allowed a single buyer to swoop in if a buyout proposal sailed through a 14-day challenge-free period.

Pretty much anyone who’s anyone realized how bad of a look this is.

“Life isn’t fair, but this ape selling for 10 ETH out from under the co-owners feels exploitative,” commented Justin Trimble, founder of Braindrops. “Multiple reasons to be cautious about participating in fractionalized assets now.”

The Rise of Rare Punk Sales and Broader Trends

CryptoPunk 2386’s sale underscores a surge in noteworthy Punk transactions.

A “hoodie-zombie” Punk raked in $1.3 million just days ago, while other rare gems command steep prices.  It’s the fourth high-profile Punk exchange in three days.

Investors are probing the cracks in fractional ownership, questioning the security and fairness as loopholes emerge.

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BlackRock Predicts Recession. Is It Over For NFTs?

If you were hoping for your bags to pump, BlackRock has news for you: NOT YET.

From the helm of the largest asset manager and bitcoin ETF issuer, BlackRock’s analysts caution that more “volatility flare-ups” are on the horizon. They predict the Fed won’t slash rates as swiftly as the market anticipates.

“We see multiple factors driving market volatility: resurgent recession fears due to some softer economic data, pre-U.S. election jitters and profit-taking as investors make room for new stock issues,” BlackRock Investment Institute strategists led by Jean Boivin wrote in a  note , adding: “We don’t see the Federal Reserve cutting policy rates as sharply as markets expect.”

Do you actually think BlackRock would give people real investing advice? They clearly have ulterior motives here.

Many people seem to think they are the asset managers who would let your mother die for a %0.000001 gain on their portfolio.

Take it with a grain of salt, but any further volatility for crypto could put NFTs six feet under.

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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.