How this CrypToadz NFT owner earned 1,000x profit
The wallet paid 1,055 Wrapped Ethereum (WETH) for CrypToadz non fungible token (NFT) which was worth 0.950 Ethereum (ETH) two weeks ago. Is it just a mistake or a scam?
While some say NFTs are dead, someone made a 1,000x return on CrypToadz #4030 NFT. According to the collection's OpenSea page:
“CrypToadz are a group of 6969 small amphibious creatures trying to escape the oppressive rule of an evil king.”
Possible reasons behind the sale of CrypToadz NFT
According to OpenSea data, wallet 0xe1a0 bought CrypToadz #4030 NFT for 1,055 WETH (around $1.4 million) on October 9th. But 0xe1a0 paid more than 1,000 times the average price.
The wallet paid around $41,500 to NFT marketplace OpenSea.
Read more: Top 9 offshore options in 2023
Some members of the community speculated that the deal was more likely to be a wash trade. Previously, BeenCrypto explained:
“Wash trading is a form of market manipulation in which one party buys and sells the same asset. This deceptive practice creates market movements while the beneficial ownership of the asset remains unchanged.”
Monitoring the flow of funds on the chain, it can be seen that 0xe1ao received 1,115.90 ETH from another wallet – 0x8Da4. However, 0x8Da4 received the money from crypt mixer Tornado Cash for around 99.5 ETH.
Because of this on-chain behavior, some community members suspect money laundering activities. User X (Twitter) wrote the following.
“NFT, a carpetbagger who pretends to be a fat finger and buys another bag.”
Read more: Top 7 Tornado Cash Options in 2023
However, some consider it to be a fat finger error (a typo). In fact, the wallet address made several offers of 1.055 ETH to other NFTs from the CrypToadz collection. So, for CrypToadz #4030, the guy spent 1,000 times longer than he intended typing commas instead of periods.
What's your idea?
Meanwhile, the NFT market is going through a challenging phase. Data from Dapradar showed that the transaction volume fell to the lowest level since the first quarter of last year.
Amid the decline in NFT trading, the top NFT developer, Yuga Labs, announced on October 6 that it will reduce its workforce.
Read more: 10 Best NFT Marketing Agencies to Promote Your Digital Art
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