Cryptopunks: A Guide to the Revolutionary NFT Collection
In the world of non-fungible tokens (NFTs), there is perhaps no collection more iconic and revered than Cryptopunks. Launched in 2017 by the product studio Larva Labs, Cryptopunks is widely considered the progenitor of NFTs, and its impact on the NFT ecosystem cannot be overstated.
What Are Cryptopunks?
At its core, Cryptopunks is a collection of 10,000 unique 24x24 pixel art images that depict mostly humans, with 6,039 male and 3,840 female images. There are also several unique types, including zombies (88), apes (24), and aliens (9). Each Cryptopunk can exhibit a combination of 87 unique attributes, known as “traits,” which include hats, cigarettes, necklaces, earrings, eyepatches, and more.
The maximum number of traits a single Cryptopunk can have is seven, but only one, #8348, has seven traits. Most Cryptopunks have two or three traits, and some have zero. The distinctive imagery and traits featured in the Cryptopunks collection were inspired by the London punk movement of the 1970s.
Who Created Cryptopunks?
Cryptopunks was created by two Canadian software developers and Larva Labs founders, Matt Hall and John Watkinson, as an experiment in creating generative characters. The project started out slow, and initially, the Punks NFTs were given away for free to whoever wanted them because a user needed an active Ethereum wallet to collect one.
The early supporters of Cryptopunks, including top-tier NFT influencers like Pranksy, 6529, and Seedphrase, realized early on that digital ownership would become increasingly valuable and that owning and claiming stuff on-chain would be a game-changer. Thus, a community grew around the project, and it became a niche internet fad that later grew into one of the most expansive and well-known NFT projects in the world.
Why Are Cryptopunks So Expensive?
The question on everyone’s mind is: Why are Cryptopunks so expensive? Cryptopunks are not only a lucrative investment but also a status symbol. Many see Cryptopunk owners as visionaries who foresaw the potential of NFTs and got in ahead of the curve. Cryptopunk owners are builders and creators who have built entire personas, projects, communities, and brands around their Cryptopunks.
Moreover, Cryptopunks are considered valuable due to their historical significance and what they represent for Ethereum. The early supporters of Cryptopunks, who mostly got involved with the project in the early days of crypto, bet on the importance of NFTs and the Ethereum blockchain.
Furthermore, several notable figures in the tech industry have expressed interest in the Cryptopunks collection, adding to its cultural significance. In 2021, Twitter CEO Jack Dorsey auctioned off his first-ever tweet as an NFT and used the profile picture of a Cryptopunk. Tesla CEO Elon Musk has also tweeted about the collection and even changed his Twitter profile picture to a Cryptopunk on multiple occasions.
The impact of Cryptopunks on the NFT space has been significant. The project has inspired countless other NFT collections, and its influence can be seen in many of the most successful NFT projects today. Cryptopunks has also helped establish the value of NFTs, as the record-breaking sales of some Punk NFTs have made headlines worldwide.
In terms of financial value, Cryptopunks have sold for astronomical amounts, with the rarest ones selling for millions of dollars. For example, in March 2021, an Alien Cryptopunk #3100 sold for 4,200 ETH, equivalent to $7.58 million at the time.
How to Buy a Cryptopunk NFT
Cryptopunks are available for purchase on the official Cryptopunks website. However, with the explosive growth of NFTs, auction houses have also started selling Cryptopunks. Christie’s, one of the world’s leading auction houses, sold a collection of nine Cryptopunks for $16.9 million in May 2021.
Yuga Labs Bought Cryptopunks and Meebits from Larva Labs
In March 2022, Yuga Labs acquired both Cryptopunks and Meebits from Larva Labs. The acquisition came as a surprise to many in the NFT space and signaled a new chapter for both collections. With the acquisition, Yuga Labs aims to foster a community of builders creating derivative works around the two projects. As they’ve done with their own Bored Ape Yacht Club, Yuga stated that they would transfer IP, commercial, and exclusive licensing rights to the individual NFT holders.
In effect, this acquisition addressed one of the major controversies surrounding Cryptopunks, as users were finally given a clear framework of what rights they would have in relation to their Cryptopunks. Now, owners of Cryptopunks and Meebits are empowered to create artwork and products based on their NFTs in the same way BAYC owners can. This has led to numerous successful derivatives.
As part of the deal, Yuga Labs received 423 Cryptopunks and 1,711 Meebits.
It remains to be seen what impact Yuga Labs’ ownership of Cryptopunks will have on the collection and the NFT space as a whole. However, it’s clear that this acquisition represents a significant moment in the history of the project and will likely lead to new developments and opportunities for collectors and creators.
