A Rare CryptoPunk NFT Valued at Millions of Dollars Was 'Heisted' for a Mere $23,000

A rare non-fungible token (NFT) from the CryptoPunk collection was recently acquired for a fraction of its true value, sparking mixed reactions within the NFT community.

The incident occurred when a trader managed to purchase the valuable Ape-themed NFT, complete with a headband and small shades, for a mere 10 ETH (around $23,000) through an ingenious exploitation of smart contract mechanisms. The NFT in question had been earlier fractionalized into 10,000 parts on the now-defunct platform Niftex.

Despite the platform's closure, the underlying smart contracts remained active on the blockchain. These contracts notably included a “shotgun” mechanism, which allowed any shareholder to propose a buyout at a specified price.

If no one countered the bid within a set timeframe, the NFT would be transferred to the proposer. Utilizing this mechanism, a trader was able to acquire the NFT for a price that was a fraction of its true value. The NFT is now being bid on for 600 ETH, which, if sold at that price, would net the seller a profit of around 590 ETH in an hour.

NFT collector gmoneyNFT attempted to block the sale by placing a counterbid, but his bid was ultimately rendered invalid due to a technical oversight, allowing the buyout to proceed.

The incident has sparked a debate within the NFT community, with some arguing that the smart contracts should be adjusted in light of the occurrence. Others, including gmoneyNFT, maintain that the smart contracts “worked as intended.”