By
Godfrey Benjamin
April 26th, 2024
The reason for the surprise was that the average sale price for CrypToadz is typically under $1,000, making the sudden hundredfold increase in value in a short period of time seem questionable to experts.
On October 9th, an anonymous crypto user bought a CrypToadz NFT on the popular NFT marketplace OpenSea for a shocking price of 1,055 Wrapped Ethereum (wETH), equivalent to around $1.6 million. This expensive purchase of a single non-fungible token representing one of over 6,000 illustrated amphibians raised eyebrows within the NFT community.
The Surprising Price for a CrypToadz NFT
The reason for the surprise was that the average sale price for CrypToadz is typically under $1,000. Just two weeks earlier, this very same NFT had been purchased for only 0.95 ETH, making the sudden hundredfold increase in value in a short period of time seem questionable to experts.
Oh geez this doesn't look good. A Cryptoadz NFT sells for $1,660,000 (1,055 ETH).
There were $41,500 in fees paid to OpenSea which makes me think it was a fat-finger error.
The floor price for the Toadz is 0.5 ETH.
ht @gangnam_eth pic.twitter.com/h8bPTCj2la
— NFTstats.eth (@punk9059) October 9, 2023
Adding to the mystery was the crypto wallet used to make the purchase. The funds were transferred through an Ethereum account that had been involved in a long chain of transactions obscured using a coin mixing service called Tornado Cash. Tornado Cash is a platform designed to anonymize transactions on the Ethereum blockchain by pooling funds from multiple sources before sending them to their destination wallet. This technique makes the original source of funds extremely difficult to trace.
The Anonymity of the Transaction Fuels Speculation
The high price paid anonymously led to speculation amongst NFT traders about what was behind the odd transaction. Some wondered if it was simply a mistake in placing the trade, while others suggested more concerning possibilities like wash trading.
Wash trading refers to the practice of buying and selling an asset to yourself to simulate demand and increase perceived value. Crypto experts wondered if wash trading could be taking place to artificially inflate the NFT’s price for future sales.
The cryptocurrency mixing service known as Tornado Cash, which was used in this NFT purchase, has been involved in a lot of trouble. Just last year, the US government imposed sanctions on Tornado Cash, alleging that it had facilitated money laundering of cybercrime profits, some of which came from crimes against American victims. Tornado Cash has faced accusations of handling more than $7 billion in illegal money since 2019. Additionally, the founders of Tornado Cash have been criminally charged with money laundering and violating sanctions.
In the face of the questionable pricing, Gremplin, the artist responsible for the controversial CrypToadz NFT collection, has decided to distance himself from the situation. At the same time, he is encouraging his fans to stay enthusiastic. Surprisingly, the CrypToadz NFTs, which have been selling for significant sums, have had a remarkable impact on the NFT market. This has led to a substantial increase in global trading volume, despite the ongoing controversy.
if you're gonna wash your tornado'd eth pls don't sully the good vibes of a fresh toad in the process thx pic.twitter.com/jDqqD9sWTr
— 🎃 (@gremplin) October 10, 2023
While the motivation behind the expensive NFT buy is still unclear, the unusual nature of the transaction demonstrates some of the challenges in tracking ownership and evaluating the legitimacy of some crypto trades.