It looks like the NFT market is getting heated up as CyptoPunk gets acquired in a flash for over $750K. It has just proven that the market-wide bull run for NFT’s is not a show stopper.
CryptoPunk often referred to as an ultra-rare alien, is considered the original NFT project. It is said to be released before cryptokitties, which are blockchain-based collectibles that pushed NFT to the light. According to Larva Labs CryptoPunk developers, Punks have a total sales of $26 million in their native marketplace and its average sale price in the past year is $6199.
Each Punk is uniquely made with different colour, accessories and rare features such as an alien appearance. There are only nine allied punks that exist in the cryptopunks universe since 2017. So far, it is one out of nine punks that have been sold at an auction, and it was sold for 605 ETH which is an equivalent of approximately $761,888.57.
Survival for the fittest
The auction was very competitive and took only 25 minutes. The Punk sold at that price was last sold in July 2017 for 8 ETH meaning the owner had a high return on investment.
Flamingo DAO, an NFT collective that supports and collects premium NFTS, were the winners at 605 ETH, which was higher than the second-highest bid of 500ETH.
Aliens are believed to be valuable since they are the rarest Cryptopunk. Flamingo believes that the Aline will grow in value with time and prized by collectors progressively making it an iconic digital art piece in future.
According to FlamingoDAO community representative, the Punk they bought is the most expensive piece the collective has ever had.
Flamingo is a collective fund with about 40 members and a total of 4800 ETH in pooled capital. It has invested in hundreds of NFTs.
The future of NFTs
Even though there are still many people who are sceptical about NFTs, they have a bright future. They are quickly being taken up as the future of the digital property. This is evident from the bid.
A major decentralized finance personality @0X_b1, who was one of the bidders indicated that we were willing to pay 825 ETH to get the piece of art.
The over 75x return on investment shows that the NFT is highly valued.
There is a fellow Alien Punk 3100 that is rumoured to be listed for sale and so far has a bid of 666 ETH, which is even higher than Punk 2890. The value of NFTs is expected to increase with time.