The non-fungible token (NFT) market is blowing the charts after a rudimentary digital collectible sold for more than $750K in Ether.
As the NFT market continues to enjoy a bull-run, the sale of a rare alien digital art for 605 Ether is an indication that the sector is booming.
CryptoPunks are considered to be the original NFT project that was released long before the popular Cryptokitties was known. Cryptokitties is credited for taking NFTs to the mainstream audience.
Each Punk has its own uniques attributes that include background color, accessories, and some rare features such as ‘alien’ or ‘zombie’ appearance. There are only nine Punks in existence.
FlamingoDAO, a decentralized autonomous organization (DAO) that invests in digital collectibles, is the new buyer. Flamingo is a fund consisting of 40 members who pooled in 4,800 Ether.
The fund has hundreds of NFTs and its war chest include Autoglyphs, NBA Top Shot cards, and many more.
Flamingo is optimistic about the future of the NFT market despite many people being skeptical. Critics are questioning why the Punk should be sold for such high prices.
“It’s understandable for folks to be skeptical about NFTs, but in our view, NFTs are the future of not just digital art, but all digital property. It’s the tip of a very large spear.” – Flamingo
A competitive bid
The unknown owner of the Punk put it put for sale early Saturday morning and Flamingo quickly acted to buy CryptoPunk 2890, and own one of the rare digital collectibles.
However, they had to shrug off some serious competition from a prominent DeFi personality who placed a losing bid of 500 ETH.
The Punk was last sold in July 2017 and fetched a price of 8 ETH, equivalent to $2,127 at the time. In ETH terms, the owner’s return on investment is more than 75x. This figure is even higher in USD terms as Ethereum is enjoying a bull run.
CryptoPunks developers Larva Labs claim that the lifetime sales of the Punks have raked in $26 million on their native market place, with each Punk being sold for an average of $6,199 over the past year.