NFTs Not Dead Yet: CryptoPunk Sells For Surprising $16 Million

Non-fungible tokens (NFTs) continue to be a hot commodity. CryptoPunk 3100, one of only nine alien punks, sold for $16 million on Monday.

It’s the second-highest CryptoPunk ever sold. According to Crypto News, CryptoPunk 5822, another alien punk, was bought for nearly $24 million in early 2022, during the height of NFTs.

This is the third time CryptoPunk 3100 was sold. The first time occurred in July 2017 when it was bought for only $2,127. Just under four years later, in March 2021, CryptoPunk 3100 was sold for a whopping $7.58 million.

“CryptoPunks are one of the earliest and most iconic examples of ‘Non-Fungible Tokens’ minted on Ethereum, and were the inspiration for the ERC-721 standard which powers most digital art and collectibles on-chain,” CryptoPunks website reads.

Crypto News reports that CryptoPunk was created by Larva Labs in 2017 and purchased by the creator of Bored Ape Yacht Club in 2022.

This multi-million dollar sale comes on the heels of a report last September that revealed 95 percent of over 73,000 NFT collections were essentially worthless.

“This daunting reality should serve as a sobering check on the euphoria that has often surrounded the NFT space,” writes dappGambl in its report. “Amid stories of digital art pieces selling for millions and overnight success stories, it is easy to overlook the fact that the market is fraught with pitfalls and potential losses.”

In August 2021, NFTs recorded $2.8 billion in monthly trading volume. However, in July 2023, weekly traded value was at $80 million, only 3 percent of its peak.

“It is a stark reminder that, while the NFT space has introduced a revolutionary new model for ownership and the monetization of digital assets, it remains a highly speculative and volatile market,” says dappGambl. “As such, both creators and investors should approach with caution, a clear strategy, and a thorough understanding of the risks involved.”

The most expensive NFT belongs to digital artist Mike “Beeple” Winkelmann, where his “Everydays: The First 5,000 Days” sold for a staggering $69.3 million at a Christie’s auction in March 2021.

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