On hearing the word ‘CryptoPunk’, one might think of it as informal and strange, and might not be able to trust their finances with crypto punk NFTs, but it is completely the opposite. CryptoPunks started as an experiment.
Matt Hall and John Watkinson, the creators of the New York-based software business Larva Labs, built a software program in 2017 that generated hundreds of varied, strange-looking figures. They first felt they had the makings of a smartphone app or game. They came up with a paradigm-shifting strategy for the digital art market as well as a challenge to the idea of 'ownership' itself. It was a coincidence, and none of the designers expected it to transform the realm of digital art and eventually emerge as a milestone in the Blockchain technology world.
In this article, we will learn everything about CryptoPunk NFT, which is the new ethereum NFT sensation on this date.
What is CryptoPunk NFT?
CryptoPunks is a 2017 Ethereum-based NFT project that was one of the first examples of crypto collectibles. Prices rose as the larger NFT market expanded in 2021, resulting in multiple transactions for more than $1 million each, according to decrypt.
As non-fungible tokens (NFTs) hit the mainstream, the market for crypto collectibles boomed in 2021, with $2.5 billion in transaction volume in the first six months. The rise has also resulted in NFT fans finding some of the early non-fungible tokens, pushing the value of these crypto collectibles to previously unheard-of heights.
CryptoPunks was made available for free in 2017. At the time, Ethereum's ERC-721 non-fungible token standard didn't even exist, so the two-person team at Larva Labs issued them as an experiment. Ethereum wallet users scooped up the 9,000 CryptoPunks made available to the public, while Larva Labs kept the remainder.
NFT volume progressively increased over the following three years, but it wasn't until late 2020, and especially early 2021, that demand for these allegedly scarce digital treasures surged. The secondary market value of CryptoPunks skyrocketed, resulting in multi-million dollar NFT sales, Christie's and Sotheby's auctions, and a plethora of CryptoPunks used as Twitter profile images.
Let us first understand what crypto punks are.
What are CryptoPunks?
An NFT is essentially a digital item ownership deed. CryptoPunks, developed by Larva Labs, is a collection of 10,000 artworks tokenized as NFTs on the Ethereum blockchain. One who buys the NFT is the only owner of a one-of-a-kind pixel avatar with CryptoPunks NFT.
Each CryptoPunk is created at random from a list of hundreds of features, resulting in a diverse range of designs such as people, zombies, apes, and even aliens. The gathering of 10,000 CryptoPunks is final and irreversible
Because of the nature of blockchain, even if Larva Labs wanted to, they couldn't change the existing series after the product was live. The makers treat each work as a separate piece of generative art while enabling the project as a whole to be viewed as a bigger conceptual piece.
(Related read: What is the Future of Cryptocurrency?)
The Punks are believed to have seven distinct characteristics – and just one Number 8348 possesses all of them: a bucktooth, a large beard, a mole, and a cigarette. It also has vintage sunglasses, jewelry, and a top hat on. It is still a coveted emblem among collectors.
The Punks are classified into five types: male, female, ape, extraterrestrial, and zombie.
The first 1000 CryptoPunks, also known as Dev Punks, are held by the founders. The remaining 9000 are held by random collectors all around the world, many of whom are now millionaires. Alien and zombie avatars are among the most popular, commanding some of the highest sale prices to date.
Examples of CryptoPunks:
Some of the top expensive NFTs are given below, sourced from outlook India:
CryptoPunk 7523 was last auctioned for $11.8 million: This is the priciest CryptoPunk 7523 and one of nine alien Punks. What makes it unique? Because it is the only one who is dressed in a surgical mask.
CryptoPunk 7804 was last sold for $7.56 million: This CryptoPunk differs from others in that it wears a hood, goggles, and hose. It is also the only one equipped with a pipe and a cap. It is owned by Dylan Field, the CEO of Figma.
CryptoPunk 3100 was last sold for $7.51 million: This sold for $7.51 million in March 2021, ranking second only to CryptoPunk 7804. Its uniqueness stems from the flag it wears, which other CryptoPunks do not.
CryptoPunk 5217 was last sold for $5.44 million: This one features a red knitted headgear and a gold chain, giving it a distinct appearance from other CryptoPunks. After 3100, it is the fourth most costly Punk.
(Recommended read: Top 10 NFT Platforms)
How to buy CryptoPunks?
While all of the CryptoPunks may be viewed on OpenSea, the main secondary market for NFTs, they can only be purchased through Larva Labs' website. One must first log in using an Ethereum crypto wallet, such as MetaMask before they can purchase, bid on, and sell CryptoPunks on the official site. Larva Labs offers a helpful tracker that shows all of the listed Punks in order of pricing, from cheap to expensive.
The arrangement Hall and Watkinson devised has been likened to owning a piece of real art that is perpetually on loan to a public museum. It also influenced the now widely adopted ERC-721 NFT standard, establishing the framework for today's NFT industry.
For people who are new enthusiasts and want to invest in crypto punks, some essential knowledge must be acquired by them. The Punk is not for sale if it has a blue backdrop. The owner of the ones with a red backdrop is selling them. Those with a purple backdrop are participating in a running bid. Ape Punks and Zombie Punks have 24 and 88 members, respectively.
In addition, zombies are green, aliens are bright blue, and apes have hair. There are 6,039 male Punks and 3,840 female Punks, making them less desired in the Punk market. Female Punks are the most sought-after among human Punks. CryptoPunk 8888 is the only human Punk among the top 10.
(Also read: Why should we invest in Semi Fungible Crypto Token?)
Advantages of CryptoPunks:
The arrangement established by Hall and Watkinson has been compared to owning a piece of actual art that is continuously on loan to a public museum. It also had an impact on the now widely used ERC-721 NFT standard, laying the groundwork for today's NFT business.
They've spawned a flood of profile image NFT sets, from Bored Ape Yacht Club to Pudgy Penguins and many more, each of which merely adds to the source project's influence and history. CryptoPunks also has several well-known shareholders, like rapper Jay-Z and influencer and investor Gary Vaynerchuk.
Certain CryptoPunks have certain characteristics that make them more desired and expensive to collectors. Alien avatars are the most unusual of the randomized pictures, and as a result, alien CryptoPunks are among the most costly NFTs ever sold. Designs for apes and zombies are also popular.
The majority of CryptoPunks resemble people with varied characteristics and accessories, and the plainer-looking ones are nearer to the market floor in terms of asking price on NFT markets.
(Must check: 10 Top NFT Games to Explore)
It's impossible to predict if the present level of demand will last, but the entry-level price for Punks continues to grow. The price floor reached $100,000 in early August 2021 and quickly surpassed $150,000 a few days later. As of this writing, it has risen too far over $200,000 in value.
(Suggested blog: What is Cryptojacking and How to Prevent it?)
It is doubtful that Larva Labs would release additional CryptoPunks, considering that they are restricted in availability and are among the oldest NFTs available. It is doubtful that Larva Labs would release additional CryptoPunks, considering that they are restricted in availability and are among the oldest NFTs available.