DraftKings Billionaire: Why I Compensated $11. 8 Million for any CryptoPunk NFT

Fantasy sports and wagering company DraftKings’ largest aktionär Shalom Meckenzie, who is the board member, bought a CryptoPunk NFT for $11. 6 million worth of Ethereum (ETH) on Thursday in the Sotheby’s auction.
“I actually wanted this particular CryptoPunk, ” Meckenzie told Decrypt. “It is part of the alien selection, which is the rarest from the punks, and the only strange that has a mask. I thought it had been symbolic of Covid as well as the popularization of NFTs. ”

NFTs or non-fungible bridal party are blockchain-based crypto bridal party that show proof of possession of a digital or physical resource; NFT sales exploded within February but have considering that cooled. CryptoPunk #7523, or even “Covid Alien” as the press has taken to calling this, is the only one in the ten, 000-strong CryptoPunk collection—a 2017 NFT project of pixelated portraits named after Uk punk rock culture from the 70s—with accidental Covid-19 significance, which sent its worth through the roof. Last night’s sale surpassed the previous selection record held by the pipe-smoking alien CryptoPunk #7804, which usually sold for $7. 5 mil worth of ETH within 2018.
The mask-wearing CryptoPunk was last sold in Come july 1st 2017 for only 7 ETH, which was $1, 650 then. Sillytuna, the private NFT collector behind yesterday’s sale, acquired it within March at a price he or she declined to disclose to Decrypt—the purchase was over-the-counter (OTC), not on-chain, so there is no price record within the public ledger.

So long my pal. Don’t be a stranger. picture. twitter. com/xnWMemwey8
— Sillytuna (@sillytuna) June 10, 2021

“I had the opportunity to get it at a time I felt NFTs were in a great spot to do fun things, and am wanted to do something interesting, ” sillytuna told Decrypt. “Sotheby’s counted as interesting. ”
The same Sotheby’s auction furthermore included the first NFT actually created, artist Kevin McCoy’s 2014 animation “Quantum. ” Sillytuna snapped it up meant for $1. 4 million, contributing to his collection of more than one, 000 NFTs. “In a couple of years we’ll know the true condition of NFTs, ” he or she said. “We need a full-range of pricing rather than simply ‘expensive. ’”
He programs to donate 5% from the proceeds from his $11. eight sale to Covid-19 charitable organizations and 5% to Larva Labs, the creator associated with CryptoPunks. Last month, Larva Labs auctioned off the nine CryptoPunk NFTs in Christie’s for $16. nine million in total.
At the Nasdaq opening-bell ceremony on Fri, Meckenzie and DraftKings TOP DOG Jason Robins sported tee shirts with a print of Meckenzie’s new CryptoPunk purchase.

DraftKings CEO @JasonDRobins is wearing the CryptoPunk t-shirt to band the opening bell in the Nasdaq this morning. he’s along with board member Shalom Meckenzie, who bought the “Covid Alien” CryptoPunk for $11. 7m in Sotheby’s public sale this week. pic. twitter. com/AKx0VzIy2r
— Daniel Roberts (@readDanwrite) June 11, 2021

DraftKings warms up to crypto
“I’m a big fan of NFTs, ” Meckenzie said. “I did a lot of research within the value and I have no question that NFTs will be a disruptor in the art industry. ”
Covid Alien is Meckenzie’s first personal NFT buy, but DraftKings is no unfamiliar person to NFTs or CryptoPunks.
In April, the company bought a rare NFT, CryptoPunk #1871, for $70, 400 really worth of ETH, and put up as the first-place prize in a single of its daily fantasy sports activities (DFS) golf contests. Final month, its rival FanDuel offered a free-to-play fable NBA contest with NBA Top Shot NFTs since prizes.
DraftKings is trimming closer to crypto, but it isn’t really just there yet.
The organization has yet to accept crypto payments. Two days ago, DraftKings CEO Jason Robins reported the strict regulations within online betting as a main barrier for the company.
Fortunately, there’s no regulation avoiding it from acquiring CryptoPunks—or promoting them on their clothing at the Nasdaq, for that matter.