NFTs are part of the global blockchain ecosystem, gaining popularity every year. One of the most famous NFTs today is the CryptoPunks collection. Some users are just pixelated pictures depicting characters from some game universe. However, for true connoisseurs and crypto-enthusiasts, this is a piece of art worth several hundred million dollars.
The rapid growth of the NFT industry began with the appearance of this unique collection in 2017. Since then, many similar projects have appeared, including bored monkeys and more. It has become a digital art, with many wanting to purchase a picture from the collection.
This article will help you learn more about CryptoPunks NFT, the collection’s value, and its features.
What are CryptoPunks?
CryptoPunks is a collection of pixel avatars with 10,000 images of different heroes. Each avatar has a unique style, so you won’t find a single picture repeating. The whole collection is presented in NFT (non-fungible token) format. So anyone can buy one or more pictures.
The images of the heroes are generated in the Ethereum blockchain by a special program using an algorithm. Once created, users could get the avatars for free or buy them at a meager price. Then they quickly gained popularity, and their price began to grow exponentially. At the moment, a single token from this collection could be worth several million dollars. Owners of CryptoPunks include global celebrities and public figures who use this investment for art.
Who created CryptoPunks?
CryptoPunks was created in 2017 by web developers Matt Hall and John Watkinson. At that time, they were working in their web studio, Larva Labs, creating various software for the gaming industry. They didn’t originally plan to create non-fungible tokens since it wasn’t as popular as it is now.
They needed to create an algorithm for a program that could generate images of characters for computer games. They were able to do that. They tested the algorithm and created 10,000 images of heroes in different styles. Each hero’s appearance, clothing, accessories, gaze, and other details differ. Subsequently, the creators decided to make an NFT for their new collection. Many users liked the idea, so the project quickly became popular worldwide.
At first, Matt Hall and John Watkinson had to work with a modified Ethereum standard ERC-20 because there was no special standard ERC-721 for non-fungible tokens at that time. This became the basis for its subsequent development.
How to buy a CryptoPunk NFT
You can make transactions with CryptoPunks on the official website of the developers of this project — https://www.larvalabs.com/cryptopunks. The site has detailed instructions on how to buy or sell tokens at the market CryptoPunks price:
- Open a MetaMask cryptocurrency wallet account and deposit if you want to buy a token from a unique collection.
- Go to the CryptoPunks search and selection page to find your desired token.
- Go to the punk page and see the buy button (it is active if the MetaMask cryptocurrency wallet plugin is added).
As you can see, the cost of collectible character cards varies. Some are priced at $75,000 and some at $7,500,000. On the page of your chosen punk, you can find out more information about it so you can make your choice and not make a mistake.
All CryptoPunks can only be bought from other users who currently own them. Therefore, you will have to bid and offer a higher price than others to make a deal. Some tokens are unavailable for purchase because the owners do not want to sell them.
Why is CryptoPunks so expensive and worth so much?
At first, collectible cards in this series were given away for free or sold for a few dollars. Over time, however, they have become more popular among collectors. Tokens have collectible value because a unique algorithm generates them, and their number is limited.
Celebrities and public figures, who have made several significant investments in the project on the wave of growing interest in the blockchain industry, have made a unique contribution to the value and popularity of tokens. Celebrities like Snoop Dogg purchased CryptoPunks for their avatars, which attracted a large audience to the project in 2018–2021.
Subsequently, other similar projects emerged. For example, Bored Ape Yacht Club, Doodles, Cool Cats, and World of Women. They have a similar concept, but each collection has a unique design style.
With the growing popularity of NFT, many see such an investment as a way to earn or gain collector status for a unique blockchain item.
CryptoPunks acquisition by Yuga Labs
In March 2022, Yuga Labs, the company behind the Bored Apes Yacht Club (BAYC), announced that it had acquired the intellectual property rights (IP) of CryptoPunks. BAYC is the world’s second most capitalized NFT collection with its ecosystem, extensive community, and many fans. The total value of all tokens of both collections exceeds several tens of billions of dollars.
It is currently unknown why the founders of CryptoPunks agreed to sell the corporate rights to their collection. After all, they were previously competitors with Bored Apes. The developers of punks likely decided to continue working on new projects for which they needed money.
The deal news led to a slight increase in interest and NFT value from both projects.
The future of CryptoPunks
No one doubts that CryptoPunks have a great future. The NFT industry is developing yearly and becoming increasingly popular among collectors, crypto-enthusiasts, and investors. This is the first such limited-issue collection, so its value will grow in the future. However, each time the price of tokens gets higher and higher, so not everyone will be able to afford them.
If you want to become an NFT collector, we recommend paying attention to other similar projects with a similar concept. For example, Art Blocks, Meebits, Cool Cats, and many others. Probably, their value and popularity among users will also increase.
Connected to Ethereum
In 2017, there was no ERC-721 standard for NFT, which is used today for crypto art. Initially, all images were presented on the ERC-20 standard in the Ethereum blockchain. It is this blockchain that is most suitable for the implementation of the NFT concept. In the future, the project’s current owners have no plans to replace the blockchain or change the project’s structure.
What is important is that this collection of tokens became the reason for the development of the ERC-721 standard, on which almost all non-fungible tokens already exist.
The Cult of CryptoPunks
Initially, the idea for such a collection was taken from the cult of London punks. At the time, this theme was very popular, as reflected in the game Cyberpunk 2077, developed at the time. For the first 2 years, NFT CryptoPunks cost between $5,000 and $50,000. Then that number began to rise.
A huge contribution to the cult of crypto punks was made by celebrities and large companies that announced their collectible tokens purchases. For example, VISA purchased $150,000 worth of tokens in 2021. Previously, many of the public figures we mentioned earlier have become collectible token holders.
By 2021, it is safe to say that there will be a global cult of crypto punks, due to which the value of some tokens exceeds $7 million.
The origin of the species
Each CryptoPunks collectible card is a small 24x24 pixel image. There are 10,000 avatars in the collection, with images of men and women styled as punks. They are distinguished by their backgrounds, colors, accessories, and other external elements. Many crypto enthusiasts want to buy NFTs from this collection that looks like them. Indeed, in this extensive collection of avatars, you will find several pictures that look like you or your loved ones.
Conclusion
You can become part of a fantastic community of crypto-enthusiasts who own unique art items in the form of the popular NFT. This will give you privileges and a special status in the community. However, you can also earn from it using tokens as an investment instrument.
Experts, investors, and users are sure that similar token collections will appear in the future. The main thing is not to miss the opportunity and invest in unique NFTs that bring significant money to their owners.
