NFT Trader Suffers $10M Loss After Sale of Rare Alien CryptoPunk

An anonymous $NFT collector has suffered a $10 million loss after selling one of the rarest CryptoPunks on Thursday.

On-chain data shows that Punk #3100 changed hands for 4,000 $ETH, translating to approximately $6.07 million via a private transaction on the official CryptoPunks marketplace.

The $NFT is one of just nine Alien Punks in the original 10,000-piece CryptoPunks collection created by Larva Labs in 2017. Recognized for its distinctive blue skin and bandana, the Alien Punk is part of the most sought-after group in the $NFT space.

The $10M Loss

Blockchain data from Arkham Intelligence shows that this particular $NFT previously sold in March of last year for 4,500 $ETH, then valued at more than $16 million. The sale ranks as the third most expensive single $NFT transaction by dollar value. Just days after that transaction, Punk #7804 exchanged for 4,850 $ETH worth roughly $16.42 million at the time, marking the second-largest deal in the collection’s history.

However, due to Ethereum’s price drop over the past year, Thursday’s 4,000 $ETH sale amounted to just over $6 million, resulting in the seller making a $10 million loss from the transaction.

While the parties in the exchange remain unidentified, Etherscan records show that the purchasing wallet received 4,001 $ETH from an account labeled “Coinbase Prime 2” shortly before the sale.

Alien CryptoPunks continue to dominate the top end of the $NFT market. They are the rarest type in the collection, even more than the 88 Zombie Punks or the 24 Ape Punks. The top seven of the highest-value on-chain CryptoPunk sales involve these variants.

CryptoPunks Hit by Market Downturn

Despite their status, CryptoPunks have not been immune to the broader downturn in the $NFT market. Data from $NFT Price Floor shows that their asking price has dropped nearly 43% in the last three months, currently sitting at $71,031. This figure marks a notable decline from the collection’s peak in November 2021, when the figure exceeded $400,000.

Originally offered for free in 2017, the digital assets have evolved into cultural symbols of the early $NFT era. In 2022, the intellectual property rights were acquired by Yuga Labs, creator of the Bored Ape Yacht Club.

Earlier this year, speculation swirled about a possible sale of the product’s IP. However, Yuga Labs co-founder Greg Solano dismissed the rumors, stating that while many parties had approached the company, there were no plans to divest any time soon.