• Investor sells CryptoPunk NFT for $6 million, incurring a $9.7 million loss.
  • NFT market sees significant decline in trading volumes and valuations.

What happened: Major NFT loss amid market downturn

An investor recently sold a CryptoPunk non-fungible token (NFT) for 4,000 Ether (ETH), valued at over $6 million at the time of sale. The NFT was originally purchased for 4,500 ETH, approximately $15.7 million, a year prior. This transaction resulted in a realised loss of about $9.7 million.

The sale occurred amidst a broader downturn in the NFT market, with Ethereum-based NFT trading volumes declining by more than 53% over the past month. Despite the loss, this $6 million transaction remains the largest NFT sale in the past 30 days.

Also read: Binance stops bitcoin NFT support to streamline offerings
Also read: BlackRock obtains memecoins, NFTs following $100M USDC deposit

Why it’s important

This significant loss highlights the volatility and risks associated with investing in NFTs. The decline in trading volumes and valuations suggests a cooling interest in the NFT market. Investors and market participants are closely monitoring these trends to assess the future viability and stability of NFT investments.

Rita is an community engagement specialist at BTW Media, having studied Global Fashion Management at University of Leeds. Contact her at r.hu@btw.media.

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