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Crypto News Updates

CryptoPunks NFTs Get $6M in Bids From a Single Account

NFTs are here to stay.
CryptoArt is hotter than ever.
CryptoPunks keep breaking records.

As Christie’s auction approaches, the demand for the original NFTs rises. Today, an anonymous and recently created account placed bids worth 3,034 ETH for 16 CryptoPunks. At the current price, that’s $6,309,476.33. This fact makes the story even more interesting: so far, none of the bids have been accepted.

Widely regarded as the original NFTs, the CryptoPunks contract was created on June 22nd, 2017. The project consists of 10.000 units. Each one is a 24×24 pixels, 8-bit image. The creators describe them as: “distinctly digital work, comprising both the image of the characters and the blockchain mechanisms for ownership and auction.

John Watkinson and Matt Hall built the mostly automated pixelated character generator that created them. At the very beginning, they were free. To claim a CryptoPunk all you had to do was pay the necessary Ethereum gas to power the transaction.

In the first week, only 20 or 30 found new homes. Nevertheless, Mashable wrote a story about the project and within hours every single one was gone. Except for the 1.000 the creators set aside for themselves, that is. 

Fast forward four short years and the biggest auction house in the world is selling nine of those pieces for $7.000.000. Not only the biggest, one of the most respected. A household name in the art world. What does this mean for the NFT market as a whole?

Christie’s 21st Century Evening Sale will take place in New York on May 13th.

Analysis of today’s $6M bids

Even though they might seem like vanity bids or even drunken bids, there’s something strategical about them. This recently created account got high praise on Twitter for its CryptoPunks selection, “great taste” a few people said. But the thing is, this anonymous person seems to know the market.

Of course, $6M is a lot, but if you check the prices of those that were up for sale another story emerges. The anonymous buyer offered less than the asking price each and every time. And to the ones that were not for sale, the person’s offers were certainly higher than previous bids, but not by a crazy amount. The anonymous buyer knows what it’s doing.

And so do the CryptoPunk holders, because they’re not selling.

ETH to USD, TradingView chart for 09/04/2021

ETH price chart on Kraken. Source: ETH/USD on TradingView.com

Cut to the Artchick.eth Twitter account, reporting live from the CryptoPunks Discord, “200 punks just got bought up for several millions of dollars in the past 2 hours since Christie’s announced a punk sale.” According to her, a rare zombie punk sold for around $800K. That makes it one of the all-time high sales in CryptoPunk’s history.

In a blog post from 2019 titled “CryptoPunks Two Year Anniversary,” the project’s creators said “We’re so happy to see the CryptoPunks still going strong two years after their introduction. We can’t wait to see what happens in year three and beyond!

Nowadays, we know what happened. And things are just getting started.

 

 

Photo by Viktor Forgacs on Unsplash

Source: Bitcoinist News

Categories
Crypto News Updates

Is Bitcoin Following S2F Model? How a $200K Top Could be in Sight

Is Bitcoin a commodity? It is, according to most regulatory agencies including the CFTC.

But is Bitcoin a store of value (SoV) commodity? That seems to be the current consensus. Most of the investors are treating it as so, and calling it “Gold 2.0.”

Well, if that’s the case, then Bitcoin should follow the stock-to-flow model. At least to a degree. The model gauges the total amount of “stock” – Bitcoin, in this case – available at the moment against the “flow” of new production to get the stock-to-flow ratio. That ratio quantifies scarcity. 

According to the creator of the model, famed analyst PlanB, “we are nowhere near the top of this bull market, according to both the S2FX model and on-chain signals.” And the stock-to-flow model predicts that, in the near future, Bitcoin will hit at least $100K. And the model’s still intact. It still holds. (or should we say… hodls)

bitcoin stock to flow creator btc

Some people are worried about the recent few months of relative stability, and what that does to their price projections. Others are celebrating that Bitcoin’s been above $50K for a whole month and everything that implicates. 

Is the market going through a healthy period of consolidation or is a downward trend looming on the horizon? That’s the question. According to our very own Tony Spilotro, tonight’s daily candle close is crucial, as Bitcoin could lose the uptrend line that started in March 2020. “Losing such a line, however, could lead to the first extended return to prices previously traded at, requiring a stronger bounce before the Bitcoin bull run resumes,” he claims.

TradingView chart, BTCUSD for April 8, 2021

BTC price chart on Bitstamp. Source: BTC/USD on TradingView.com

Back to PlanB’s models, notice that he said “s2fX” in his tweet. The analyst offers two models. The “s2f” model is a time series and only considers Bitcoin’s stock-to-flow. The “s2fX” model is newer, it’s not a time series, and considers BTC, gold, silver, diamonds, and real estate data. The first one forecasts $100K at the end of this cycle, the second one goes up to $288K. 

Now, even though the data seems to correlate with it, the stock-to-flow model is not proven, much less universally accepted. Last year, economist Alex Kruger told Forbes, “The whole model rests on the wrong assumption that there is cointegration between price and scarcity.

Fund manager Nico Cordeiro also chipped in, saying in his company’s blog, “From a theoretical point of view, the model is based on the rather strong assertion that the USD market capitalization of a monetary good (e.g. gold and silver) is derived directly from their rate of new supply. No evidence or research is provided to support this idea.” 

Cordeiro also claims that gold’s price hasn’t been subject to the stock-to-flow model for more than 100 years. As a counterpoint, in PlanB’s original post about the model, the analyst claims, “Gold and silver, which are totally different markets, are in line with the bitcoin model values for SF.

So, who’s right and who’s wrong? Only time will tell.
And only you can determine what all of this means for your portfolio.

Photo by Jungwoo Hong on Unsplash

Source: Bitcoinist News