#MILLION DOLLAR PYRAMID WII SALES CODE#

вЂњSome recent large bids were done the same way,вЂќ Larva Labs said. вЂњIn a nutshell, someone bought this punk from themself with borrowed money and repaid the loan in the same transaction.вЂќДЄpparently, this wasnвЂ™t the first time people have used flash loans to try and purchase CryptoPunks. вЂњPSA: This transaction (and a number of others) are not a bug or an exploit, they are being done with вЂFlash Loans,вЂ™ Larva Labs said in a Tweet Thursday night.

The owner didnвЂ™t make any money off the trade, although it did cost them about $800 in transaction fees. Without knowing who controls those addresses, weвЂ™ll never know the real motivation behind the stunt. You could call it performance art if youвЂ™re feeling indulgent. Once that was done, the buyer returned the NFT back to where it all started, and the NFT was put back up for sale again-for double the amount of the wash trade! The selling address then immediately sent the 124,457 Ether back to the buyer, who paid off the loans. (You can see its flash loan contract here.) Where did the buying address get the money from? It flash borrowed a massive amount of crypto from three sources, but most of it (87,000 Ether) came from Compound. Here is how the wash trade went down with Punk 9998: On Thursday, the person in charge of the Ethereum address beginning with вЂњ0xef76вЂќ sent the CryptoPunk NFT to another Ethereum address starting with вЂњ0x8e39.вЂќ You can see that transaction here.ДЄ short time later, вЂњ0x8e39вЂќ sold the NFT to an address starting with вЂњ0x9b5aвЂќ for 124,457 Ether, worth $532 million. вЂњThe primary usage is to provide enough money to launch an exploit, but doing wash-trading seems like a perfectly cromulent use as well.вЂќ вЂњFlash loans only exist for manipulative purposes,вЂќ Nicholas Weaver, a researcher at the International Computer Science Institute in Berkeley who has followed crypto since 2011, told Artnet News. Just last week, hackers made off with $130 million from DeFi protocol Cream Finance using a large flash loan transaction. It all sounds like a low-risk proposition for lenders and borrowers, but the truth is flash loans are commonly used by hackers to exploit loopholes in poorly written contracts and steal millions of dollars.

If it hasnвЂ™t, the transaction is reversed, as if it never happened, and the funds are returned to the lender. The contract checks whether the вЂњloanвЂќ has been paid back. The idea is this: You borrow the funds, construct a complex transaction doing whatever you want using the funds, and pay it back at the end of the transaction.

#MILLION DOLLAR PYRAMID WII SALES CODE#

Flash loans use smart contracts (bits of computer code uploaded onto a blockchain) to set out the conditions and terms of the loan. Photo courtesy ChristieвЂ™s.Д®thereum-based DeFi exchanges, such as Compound and Uniswap, make available a ton of their liquidity which anyone can вЂњloanвЂќ for the duration of a single transaction. Second, the funds for the wash trade came via a вЂњflash loan.вЂќ If youвЂ™re not familiar what a flash loan is-and why would you be?-it is a type of unsecured lending that has become hugely popular in the world of decentralized finance, or DeFi for short. In traditional finance, this is known as a wash trade-a type of illegal market manipulation meant to make an item appear more valuable than it actually is. So what exactly happened? For starters, the seller and the buyer in this translation are one and the same. In other words, the transaction was a prank.Д®ven Larva Labs, the creator of the pixelated alien creatures, crossed out the sale, meaning it doesnвЂ™t actually count. The owner of Punk 9998 was having a little fun with crypto derivatives.

It was simply crypto traders trading as they do. It wasnвЂ™t money laundering or an exploit either. If this were a real art sale, it would have made CryptoPunk 9998 the most expensive NFT ever, far surpassing Punk 7523, which sold for $11.8 million in June, and leaving the Beeple NFT that sold for $69 million in March in the dust.Д«ut this wasnвЂ™t a real art sale. Was this massive money laundering, or what? E.S.T., sending crypto Twitter abuzz and making people wonder what the heck just happened. On Thursday night, a CryptoPunk with wild hair and black lipstick, traits that arenвЂ™t particularly rare as far as the pixelated NFT characters go, sold for an eye-popping half a billion dollars-in crypto, of course.ДЄ Twitter bot that tracks CryptoPunk sales announced the news shortly before 8 p.m.

Million dollar pyramid wii sales