An NFT sale which can be considered as a wash sale, was recently observed on the CryptoPunks NFT platform. A user exchanged a digital art (CryptoPunk #9998) to another user who sold it to a third user for around 124458 eth using loans from the compound network. A little while later, the seller gave back the payment to the purchaser to repay his loan. Eventually, they returned digital art to its original owner, who then listed it for sale at 251,000 ETH.
Similar Transactions Will No Longer Be Shown Publicly
The Larva labs-owned platform has since announced that such transactions would no longer be displayed publicly. According to the firm, “even though the transaction is valid, there is only one transaction for the offer and end of the offer, which makes it impossible for anyone else to bid on the digital works.”
Before the CryptoPunk #9998 NFT sale of over half a billion dollars, Mike Winkelmann’s NFT remains the costliest. Other costly NFTs sold on the platform were CryptoPunks #7523, #7804, and #3100 in that order.
Wash Trading With NFTs?
Anyone that performs transactions on an asset to mislead the public or market is said to engage in wash trading. A trader and an exchanger might collude to perform wash trading in a traditional securities world. In some instances, one investor can act as the seller and buyer to perform wash trading.
However, the main reason for performing wash trading in this sector isn’t solely for the money but to tweak the available data of that sector. Hence, projects would need to start sorting their data to know which stats are real or fake. This wash trading has caused several disadvantages for the NFT industry.
It compromises investors’ due diligence process, which makes available statistics almost useless. Also, collectors can’t know the actual worth of what they want to purchase or sell, making them unable to rely on the available knowledge. Nansen, an on-chain analytics company, has opined that some buyers and sellers perform various sharp practices in the NFT space. The firm further alleged that some token founders now specialize in buying or selling a single NFT.
Various Artists Contribute To The Mona Lisa De Histore NFT Series
Digital creators from various parts of the world have contributed 60 Mona Lisa-themed NFTs, now available for sale on OpenSea. The theme of the NFT series was to celebrate famous female figures (from several sectors) with emphasis on the perception of women by the world as the centuries progressed. Blockchain technology’s adoption has grown significantly over the last few years, thanks to the rising interest in the NFT space.
The instant payment option is why digital creators are now opting for NFTs ahead of the traditional incentivization strategy currently in use. This has given them enough motivation to explore and bring out their creativity, knowing fully well that payments won’t be an issue. The team behind this Mona Lisa De Histore NFT series gave creators the freedom to express themselves so long it aligned with the series’ theme.
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