CryptoPunk sale nets seller $2m profit after “diamond-handing” for four years

A savvy NFT collector has made an incredible $2m in profit from one sale after their CryptoPunk sold for 500 ETH ($2m) today.

The seller originally bought the Punk back in August 2017 for 0.25 ETH, which was approximately $73 based on Ethereum’s price of $297 on that day.

Following their purchase, the seller then “diamond-handed” – a popular saying which means to hold and never consider selling – their CryptoPunk for over four years before today deciding to sell the rare ‘Hoodie’ CryptoPunk #1422 today.

The sale netted the NFT collector a life-changing 2.7m% return on their investment – an astonishing ROI even by crypto standards. The collector has also made similar returns on five other punks, which were all bought at around the same time.

The CryptoPunk warranted such a high price tag due to it having the ‘Hoodie’ trait – a desirable and highly sought-after trait for CryptoPunk collectors. The floor price – the lowest an NFT can be purchased for – of a ‘Hoodie’ punk now sits at 320 ETH ($1.28m).

Interestingly, the buyer of the CryptoPunk was funded by 2000 ETH ($8m) worth of funds via a fresh wallet made today – indicating that the buyer may be in the market for more CryptoPunk purchases and looking to continue their NFT spending spree.

CryptoPunks continue to dominate every volume metric on OpenSea and has retained its number one spot despite increasing competition from projects like Bored Ape Yacht Club and Genesis CyberKongz – mainly due to the collectable nature and the status that comes with owning a punk.

Recently, the collection has seen Jordan Belfort – ‘The Wolf Of Wall Street” – become an owner alongside another user turn down an incredible $9m bid on their CryptoPunk.

CryptoPunks also featured in Sotheby’s recent ‘Metaverse’ auction, where the ‘Queen Bandit’ Punk sold for $867k.

Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.

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