A CryptoPunk non-fungible token (NFT) that was initially bought for $16 million U.S. has been sold at a $10 million U.S. loss.
A non-fungible token, or NFT, is a unique digital identifier that is recorded on a blockchain and is used to certify ownership and authenticity.
Often referred to as “digital art,” NFTs were all the rage among crypto investors and advocates in recent years, with CryptoPunks and Bored Ape Yacht Club collectibles selling for millions of dollars.
But now, the market for NFTs appears to have crashed, resulting in owners losing millions of dollars on their investments.
Some NFTs that sold for as much as $50 million U.S. are now being resold for pennies on the dollar.
The top five most expensive NFTs continue to belong to the CryptoPunk collection, according to data from NFT analytics firm CryptoSlam.
But holders now seem willing to sell their NFTs at a loss after the market collapsed.
The digital wallet behind CryptoPunks #3100, the third-highest NFT ever sold, just resold for 4,000 Ethereum (ETH), a $10 million U.S. loss compared to its initial price.
Other CryptoPunk collectibles that were bought for more than $1 million U.S. are now listed for sale online for as little as $65,000 U.S.
Crypto analysts say that the NFT market has been on a general decline since it peaked in 2021 despite the collectibles relative scarcity and unique digital features.
