NFTs are all the rage in the cryptocurrency industry, and everyone appears to be obsessed with them. The presence of celebrities frequently adds to the buzz. This time, though, a simple NFT sale is grabbing everyone’s attention on the internet. Why? The NFT was sold for a mind-boggling $500,000,000.00.
The NFT’s sale was just announced on Twitter. A Twitter bot that records sales of CryptoPunks, an Ethereum-based NFT project that began in 2017, initially caught the information in a tweet. On Friday, the Twitter bot announced that an NFT dubbed Punk #9998 had been sold for 124,457.07 ether (ETH), or $532.414 million.
As you can expect, the tweet rapidly became the talk of Twitter-town, with everyone going insane about it. An NFT for $500 million would have made the digital asset ownership paradigm the most talked-about thing on the planet. It turned out that what a lot of people desired wasn’t going to happen.
The NFT sale was shortly shown to be nothing more than a publicity stunt to get people’s attention online. It’s not as if the sale never took place. Instead, it was more like ordering something online and returning it if it didn’t suit you. The account that purchased the NFT quickly sold it back and received a full refund.
The half-billion-dollar reimbursement
Although this isn’t precisely how things work in the NFT universe, it’s the gist of what happened. According to Twitter user Robert Miller, the NFT offered for sale by contract A was purchased by contract B for the stated quantity of ether. Contract A immediately returned all of the ether to contract B.
One issue to keep in mind is how contract B came to hold such a large sum of ether (essentially money) in the first place. For this transaction, the account holder appears to have taken out a short-term loan. In the realm of cryptocurrencies, a flash loan is a useful tool that allows a user to borrow an unsecured loan from a lender. This loan does not require the use of a third-party middleman since it is managed by a smart contract that automatically reverses the loan if the borrower fails to repay it.
Contract B paid out its flash loan during the transaction since it received the whole money back from contract A right away. There was no ether displacement in total.
The identities of the persons engaged in the viral transaction are still unknown, however it is thought that it was the work of a single individual. Regardless, the transaction has once again brought attention to NFTs, something many crypto enthusiasts welcome.