“What was its purpose?” A strange incident happened. A green-eyed and white-haired pixel character known as CryptoPunk 9998 sold for more than half a billion US dollars—or rather, it looked like it had been sold.
However, it later turned out that this was not the case at all. The Ethereum blockchain showed that the money sent to purchase CryptoPunk 9998 is back where it came from.
Measures will be taken to prevent the same incident from recurring.
In the strange event that happened last Thursday, at 18:13 New York time, a person starting with the Ethereum address Oxef76; transferred CryptoPunk to someone whose address starts with 0x8e39. About an hour later, 0x8e39; He sold NFT to an address starting with 0x9b56, 124,457 Ether, or $532 million, all borrowed from three different sources, mainly Compound. To pay for the trade, the buyer also sent these Ether tokens CryptoPunks’ smart contract, thus transferring the money to the seller as it should be in a normal trading transaction. However, later, the seller sent 124,457 Ether back to the buyer, and the buyer paid back the amount he borrowed to buy the NFT. Then NFT; It was sent back to its original address, 0xef76, and NFT was resold for 250,000 Ether ($1 billion).
This phenomenon is called “wash trading” in traditional, regulated securities markets; however, this is a prohibited practice on the grounds that trading with yourself could artificially inflate prices and suggest more demand than there actually is. Larva Labs, the creator of CyptoPunks, said that “someone bought this punk from him with borrowed money and repaid the debt in the same transaction.” Stating that this is not the first event, similar offers have been made before, Larva Labs said; stated that they will add filtering so that the same thing does not happen in the future.
Tyler Gellasch, who helped write the revision of the US financial regulator known as Dodd-Frank, said that a price of more than $500 million “seemed a bit high” and said the US Treasury and Justice Department might want to take a look at the event.
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