An art heist usually brings to mind images of masked figures scaling walls and outsmarting security systems. However, in the world of NFTs, a multimillion-dollar art theft can occur simply by understanding the decentralized system’s rules.
This was the case with CryptoPunk #2386, which was acquired by an unknown individual on September 11 for 10 ETH ($23,500), significantly below its market value. Just days earlier, on September 6, CryptoPunk #6915 sold for $1.5 million.
The story dates back to 2020 when CryptoPunks, a collection of 10,000 pixelated images, became highly valuable NFTs. As their value soared, fractionalized NFTs emerged, allowing investors to own shares of these collectibles. One platform, Niftex, enabled the buying and selling of these shares via a smart contract on the blockchain. In 2020, the owner of CryptoPunk #2386 fractionalized it into 10,000 shares, resulting in 257 fractional holders.
Niftex closed after the NFT market downturn in 2022, making it hard for fractional holders to trade their shares. However, the smart contract remained valid on the blockchain. On August 28, one of CryptoPunk #2386’s fractional holders triggered the shotgun clause on the smart contract, proposing to buy all shares at 0.001 ETH ($2.35) each, giving other shareholders 14 days to counter the offer.
Without Niftex’s notification system, most shareholders were unaware of the ticking clock. NFT collector Gmoney attempted to block the bid with a counteroffer but failed, allowing the sale to proceed.
The stealthy acquisition led many in the crypto community to label it a heist. CryptoPunk #2386, featuring a two-tone headband and sunglasses, is particularly valuable as it depicts an ape, a rare and beloved figure in NFT circles.
Despite the loss, Gmoney accepted the outcome, stating, “If you want decentralized systems, you have to take the good with the bad. It’s part of the game. If you don’t like those rules, you probably shouldn’t be playing.” As of September 12, the new owner of CryptoPunk #2386 had received a bid of $1.43 million.
Sayart / Sharon Jung guhuijeong784@gmail.com
