There’s nothing quite like owning a CryptoPunk, NFTs. CryptoPunks may be the most critical NFT project ever, serving as a status symbol, a piece of internet history, and an incalculably valuable asset.
The growth of the Ethereum blockchain is entwined with the CryptoPunks’ road to non-fungible prominence. Likewise, the creation of multibillion-dollar enterprises like the Bored Ape Yacht Club can also be linked back to the CryptoPunk model.
So, if you’re thinking about buying a CryptoPunk- or if you’re just curious about what these strange pictures are and why they cost millions of dollars – this article is where you’ll find all your answers. You can read about top 10 crypto news sites in Nigeria in one of our articles.
History of CryptoPunks
The CryptoPunks project was begun in June 2017 by Larva Labs, a two-person team consisting of creative technologies Matt Hall and John Watkinson, and has been dubbed the “alpha and omega” of the crypto art movement by British auction house Christie’s.
CryptoPunks was published as an experiment to study the dynamics of scarcity and demand as an antithesis to the changeable and centralized nature of mainstream collectibles like Pokémon cards.
The final design of each 24*24 8-bit-style pixel art image, inspired by the 1970s London punk scene and the dystopian grit of cyberpunk, was randomly created and unalterable after it went live on the Ethereum network, using a series of algorithmic templates.
Because of this unusual process, the collection’s variations are classified according to rarity, which is determined by features like beards, caps, and pipes, and by types, the most uncommon of which are nine light-blue-skinned alien Punks.
There are 6,039 male punks, 3,840 female Punks, and various pop culture archetypes, including 88 green-skinned zombie punks and the ethereal aliens. There are also eight Punks with no distinguishing traits and are sometimes called Genesis Punks.
Each character, which can be viewed as individual pieces of generative art that exist as part of a larger conceptual work, has a profile page that details its specific qualities and transaction history, as demonstrated by CryptoPunk 8348, which is notable for being that only Punk with seven attributes.
Larva Labs gave away 9,000 Punks for free to anyone with an Ethereum wallet, less the cost of gas, which was 11 cents at that time. In addition, Larva Labs preserved 1,000 Punks. Despite being sluggish to gain popularity, the collection eventually sold out after being featured on media sites such as Mashable. Read on top 10 crypto currency exchange platforms in Nigeria
How to buy a CryptoPunk NFT?
CryptoPunks will almost certainly run into people who are fresh to the NFT environment at some point, and when they do, they’ll realize one thing: punks are in short supply.
Let’s look at the pricing in context:
Allen Punk #3100 was sold for 8 ETH on July 6th, 2017. At the time, that was around $2,000. This would have looked like an absurdly high amount to pay for JPEG. That same Punk sold for an astounding 4,200 ETH over four years later, 2021. This works out to $7.58 million.
Although this is the largest Punk sale to date (at least for the time being), such sales were far from rare during the 2021 CryptoPunk bull run. Punks went from selling for as little as 7ETH at the beginning of the year to skyrocketing in the fall.
Even the cheapest available Punks were around 60-100 ETH each. The most valuable CryptoPunks can fetch up to 150ETH, but values have largely stabilized.
You can purchase one on OpenSea if you have the necessary coins in your wallet.
Punks are also being sold in auction houses. So if you keep a lookout, you might be able to find one on sale. In reality, Christie’s deserves a lot of credit for helping to grow the Punk market by exposing Punks to people in more traditional art environments.
In May, Christie’s offered a collection of nine CryptoPunks as a follow-up to the prominent auction house’s $69 million Beeple sales in March, which sold for a stunning $16.9 million.
Why are CryptoPunks so expensive and worth so much?
CryptoPunks have evolved into a status symbol and investment over time. CryptoPunks’ owners are viewed as builders and visionaries in the NFT community. They are rightly or wrongly considered people who recognized where NFTs were headed and jumped ahead of the curve. As a result, they are presumed trustworthy and of high standing.
Furthermore, others believe that owning a Punk is like betting on the relevant NFTs and the Ethereum blockchain, given their history and expansion alongside the Ethereum blockchain from the beginning. Most Punks’ early supporters didn’t come upon the initiative by chance.
In short, the project is highly appreciated because of its historical relevance and the way it embodies an Ethereum belief. Regardless of the social-to-financial value ratio, celebrities, venture capitalists, and even hedge funds have been flocking to join the CryptoPunks race.
At the end of the day, it becomes difficult to dismiss an enterprise that turned collectors into millionaires almost overnight. Because of the achievement that early collectors were able to achieve, the collection continues to be valued. Everybody is looking for a repeat performance.
CryptoPunks controversies
While Punks is one of the most popular NFTs of all time, the crew behind it is not without controversy. When one of Larva Labs’ co-founders, John Watkinson, sold off his stock of V1 CryptoPunks NFTs in February 2022. The company received backlash.
Larva Labs attempted to ban the burgeoning project and have it removed from NFT marketplaces just days after selling the V1 Punks. This condemnation could drive down the price of V1 Punks, resulting in a financial loss for anyone who purchased NFTs from Watkinson.
On the other hand, Watkinson pocketed all of the money from his sales and would suffer no losses due to the price drop, which was triggered by a business entity he and one other person owned.
The general public was divided on whether or not Larva Labs’ actions were correct. Some argued that the company didn’t deserve criticism because the team had already stated that they didn’t approve of the idea and planned to sell it.
Others criticized the company for only condemning the idea and announcing it two days after the cofounder Watkinson had already sold…which isn’t exactly forthright.
And it wasn’t the first time the NFT community chastised the corporation. Larva Labs has also come under fire for allegedly assaulting legitimate projects that aren’t to defraud people and for neglecting to explain what intellectual property (IP) rights customers have regarding the CryptoPunk NFT they hold.
CryptoPunks Acquisition by Yuga Labs
Yuga Labs began transferring IP, commercial, and exclusive license rights to individual NFT holders, as they did with their BASIC collection. As with BASIC owners, CryptoPunks and Meebits owners will be able to produce artwork and goods based on their NFTs.
One of the primary controversies was eventually addressed with this transaction since customers were officially informed of their rights in relation to their CryptoPunk NFT. The CryptoPunk developers said they went forward with the acquisition because they believed Yuga Labs would better steward their products.
Given their hostility when they controlled CryptoPunks, Hall and Watkinson may be correct. However, Yuga Labs also received 423 CryptoPunks and 1711 Meebits as part of the deal. “We’re not in a hurry to do anything but give people their IP, watch what they develop, and listen,” Yuga Labs stated when asked what they plan to do with them.
The Future of CryptoPunks
CryptoPunks, which is only a few years old, is already a legacy project in the NFT field. All information necessary about the project has been available for a long period. Punks were created. And that they will continue to exist on the Ethereum blockchain in perpetuity.
GMoney observes that, despite the rapid growth of the NFT area, Punks will not be lost in the shuffle or forgotten. Why? Because they are the origins of everything. “CryptoPunks will remain a vital part of the NFT community.
They do not need to evolve, and nothing needs to occur to secure their place in history,” he explained.
Punks, however, will almost certainly experience some adjustments with a new owner. For example, Yuga Labs now receives a commission on every resale of a Bored Ape. On the other hand, Larva Labs did not do so with CryptoPunks and Meebits.
Yuga Labs states that they have no plans to change that, but they make no indication of how they plan to use the money collections.
And it is still too early in the NFT game to make complete sense of the ecosystem or its potential trajectory. Nevertheless, the world’s financial architecture is being disrupted by blockchain technology, and NFTs are reshaping how we think about art, culture, community, and even the broader concept of consumer ownership.
However, regardless of what occurs, given the NFT community’s frequent dismissal as a marginal subculture and passing trend, it seems only appropriate that the space’s mascot is a punk. And if the future is to be ruled by crypto degenerates, beig dubbed a Punk may be the highest accolade possible. Further read on Crypto mining for beginners
