On October 3, 2024, CryptoPunk 1563 was sold for 24,000 ETH, valued at $56.3 million at the time. However, later analysis revealed that the transaction was likely a maneuver involving flash loans.

Flash Loan Manipulation in NFT Sales

Upon first glance, the sale of CryptoPunk 1563 seemed extraordinary, especially since the NFT lacked unique characteristics. Initially purchased for $69,000, the sudden 81,000% price hike raised suspicions. Closer analysis revealed the use of flash loans, an unorthodox DeFi practice that allows borrowing without collateral and repayment within the same transaction.

Flash Loan Stunts in NFT Markets

This isn't the first time an inflated NFT sale has occurred through flash loans. In October 2021, a similar event saw a CryptoPunk sold for $532 million. The NFT's creator, Larva Labs, later dismissed it as illegitimate, and many NFT data platforms followed suit.

Marketing Stunt or Genuine Sale?

According to the crypto community, such setups are more than manipulation; they're a marketing strategy. Pseudonymous commentator 0xQuit suggested that the transaction aimed to draw attention to a new meme coin, using Punk to hype the associated token. The plan involves selling CryptoPunk 1563 to the highest bidder in seven days for a minimum bid reflecting the pre-sale amount of the new coin.

The sale of CryptoPunk 1563 using flash loans illustrates how manipulations can distort perceptions in the NFT world. These transactions shift the focus from genuine purchases to image games, raising questions about the authenticity and true value of such deals.