Did someone really buy this Cryptopunk #9998 for 124,457 ETH? Or there's more to the story than this? Welcome to wash trading!
First of all, let's start with: What is wash trading? Wash trading occurs when the same individual or entity buys the same assets multiple times to artificially inflate its value without any actual sales!
Wash trading as such has been around in all forms of markets, Stocks, Crypto and beyond for other goods and assets! In most cases, the buyer purchases an item from themselves for an exorbitant amount and then trying to sell it for a lower price while still making profits!
But Crypto makes everything a bit more interesting! In this case for Cryptopunk #9998 the buyer used what's called a Flash loan to: - Take a HUGE Loan from DeFi protocols - Buy the Cryptopunk from one wallet to the other - Return the loaned funds - All of it in the same block!
So at the end of the day, as much as we would love to see it, NO, Cryptopunk #9998 didn't actually sell for 124,457 eth!