Deepak Thapliyal’s $23.7M NFT Investment
CryptoPunk #5822, one of the most expensive pieces in the CryptoPunks non-fungible token (NFT) collection, was recently transferred to a new owner. The transaction details, including the exact sale amount, remain undisclosed.
The transfer comes when interest in digital collectibles is waning, fueling speculation about the financial implications for the seller. Deepak Thapliyal, a prominent NFT investor, made headlines two years ago by acquiring CryptoPunk #5822.
This particular NFT is notable for its rarity, and Thapliyal paid 8,000 Ether (ETH) for the piece, which was valued at $23.7 million at the time. This purchase was celebrated as the highest winning bid for such an NFT and ranked as the fourth most expensive NFT sale in history.
However, Thapliyal announced the transfer of CryptoPunk #5822 this week via a farewell message on X, where he wished the NFT well in its new home. The blockchain data confirmed the transfer to a new, unlabeled address, but Thapliyal did not disclose the sale amount. This lack of transparency has led to widespread speculation within the NFT community.
45% Decrease in NFT Sales Volumes Fuel Community Concerns
Many community members believe that the NFT was sold at a significant loss, given the current state of the NFT market. Moreover, the official CryptoPunks site shows that only one alien Punk is currently listed for sale, and it’s priced at 5,000 ETH, or approximately $13.36 million.
If CryptoPunk #5822 were sold similarly, Thapliyal would lose 43.6%. The broader context of the NFT market supports these concerns. Data from the second quarter of 2024 indicates a 45% decline in NFT sales volumes compared to the previous quarter. As of July 2024, the market has experienced its lowest monthly sales volume since November 2023, underscoring the declining interest in digital collectibles.
Shaquille O’Neal Faces Legal Battle Over Astral NFTs
Meanwhile, Shaquille O’Neal, the former NBA star, is facing legal challenges related to his involvement in the Astral NFT project. A Miami federal judge has allowed parts of a class-action lawsuit against him to move forward.
The lawsuit, which has persisted for over a year, alleges that the NFTs promoted by O’Neal could be considered unregistered securities under U.S. law. It names O’Neal as a defendant, accusing him of acting as a “seller” for the Astrals NFT project.
Last week, Judge Federico Moreno ruled that the plaintiffs had sufficiently argued their case to suggest that O’Neal was indeed selling these NFTs rather than endorsing them. This decision means that O’Neal will now have to respond to these specific allegations.
However, not all of the claims against O’Neal were upheld. The judge dismissed the assertion that O’Neal had a controlling interest or significant influence over the Astrals project.
This aspect of the lawsuit had aimed to portray O’Neal as more than just a promoter, suggesting he played a crucial role in the project’s management. Despite this dismissal, the core accusation that O’Neal acted as a seller remains a legal issue for the former basketball player.
Controversy Over O’Neal’s Promotion of Astrals NFTs
The origins of the lawsuit can be traced back to O’Neal’s promotion of the Astrals NFTs. The lawsuit highlights one instance where O’Neal allegedly urged investors to “hop on the wave before it’s too late,” implying that early investment would lead to substantial returns.
Additionally, he assured potential buyers that the project team would continue to develop the NFT collection until it reached a particular value, creating further incentive to invest. The controversy surrounding O’Neal’s involvement intensified when he distanced himself from the project after the collapse of FTX, a prominent cryptocurrency exchange.
O’Neal’s legal team has until September 12 to respond to the ongoing claims. The lawsuit continues to pose serious questions about the role of celebrities in promoting digital assets and their liability under securities law. Currently, the Astrals collection has a floor price of approximately $15.50.
