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.