MICHAEL CRICHTON SPHERE SIMILAR SERIES

Flash loans are usually risk-free for lenders as well if there is no contract executed to return the amount loaned, the initial loan will never be made. Flash loans represent essentially risk-free opportunities for arbitrage for example, if a cryptocurrency is being traded for $1 on one exchange and for $2 on another, a savvy trader can use smart contracts to take out a flash loan of $100 worth of the cryptocurrency on the first exchange, sell it for $200 on the second exchange, repay the loan, and pocket the extra $100 as profit as part of a single instantaneous transaction.

MICHAEL CRICHTON SPHERE SIMILAR SERIES

A subset of these smart contracts are called 'flash loans,' where uncollateralized loans are made to a buyer and re-paid in the same series of transactions.

Because of the instantaneous nature of digital transactions, cryptocurrency transactions frequently utilize 'smart contracts,' where no part of a series of transactions executes until all parts of the transaction do, similar to a traditional escrow closing. In short, the buyer and seller likely colluded (or perhaps, were the same individual operating from different addresses) to artificially inflate the value of the NFT using a series of cryptocurrency-specific opportunities. Finally, the 'Punk' was sent back to the original owner, who quicklyВ listed itВ for sale again at nearly double the original price, 250,000 Ethereum (over $1 billion). However, as part of the same transaction, the seller then sent the Ethereum back to the buyer, who repaid his loans. As expected, the buyer, who used 'flash loans' to acquire the funds to purchase the NFT, sent the Ethereum to the seller, who in turn sent the NFT memorializing the ownership of CryptoPunk 9998 to the buyer. On October 28, 2021, a bot that tracks sales of CryptoPunks, a set of NFT avatars traded via the Ethereum cryptocurrency,В reportedВ that CryptoPunk 9998, an 8-bit figure with shaggy white hair, had sold for $532,414,877.01. Concerns regarding the application of securities laws, such as those banning 'wash trading,' are increasing given the popularity ofВ Non-Fungible Tokens (NFTs)В andВ cryptocurrencyВ transactions, andВ Chairman Gensler's recent remarksВ on the regulation of these assets.

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