Is it Critical to Create a v1/v2 CryptoPunks Pair?
Hello, this is my second and final CryptoPunk story (no promises!). The first one received a lot of positive feedback, so why not expand on it?
We’re at it again…
What is a v1 CryptoPunk?
V1 Punks are not the same as the ones I described in the previous story. Or are they?
V1s are the CryptoPunks, released on June 9, 2017 by Larva Labs. This was the original ERC-20 token and is now tradable via a modern ERC-721 wrapper. Still lost? Let’s dive into one of the greatest NFT stories!
In 2017, Larva Labs distributed 10,000 CryptoPunks (v1). The governing smart contract, however, had a fatal flaw. It enabled the buyer, not the seller, to withdraw funds following a transaction.
So, what do you do in such a case?
If you are Larva, you reject the original series and begin from scratch.
On June 23, 2017, they distributed another 10,000 CryptoPunks (v2). Everything else is history.
Those original Punks have recently reappeared. After being banned from trading and rejected by Larva, the community developed a wrapper that made v1 Punks ERC-721 compatible, allowing them to trade on any marketplace.
The v1 CryptoPunks quickly established a community that coexists with the v2 Punks. With the exception of the background colour (V1’s is soft lavender as seen in my Tweet above), the traits are identical in both collections.
To summarise: Bug in the CryptoPunks code -> Larva rejects it (v1) and creates a new one (v2) -> a team of enthusiasts does not abandon the V1 and creates a wrapper -> I buy it because it has a story and a strong community!
Why did I purchase it?
I came across CryptoPunks in 2017, but it did not pique my interest. Moving on and speaking with the community shifted my vision and made me realise this was the right place to be. And, compared to early minters, I paid a very high premium. However, I always think in the long run and am confident that this movement will thrive. I recently acquired a CryptoPunk (v2) and wanted to complete the so-called “v1/v2 pair” for the following reasons:
- Both v1 and v2 are based on the same concept and mechanics (I hope this is clear as of now);
- This bear demonstrates that CryptoPunks are a very stable and long-term hold regardless of market conditions;
- Being a rebel at heart, I have an easy bond with this community;
- They are relatively inexpensive (floor at 6.5 ETH at the time of writing) because not many people are aware of them;
- The story of v1 CryptoPunks will go into the history books, and I simply want to be a part of it.
How did the transaction go?
Unlike v2, which can be purchased through OTC deals or from the official website, v1s are available on multiple marketplaces. I bought it on OpenSea.
If you pay attention, you’ll notice that this is not my Punk.
So, what motivated me to make the move?
One of the OGs owned “my v1”. We agreed to buy a Punk with similar traits and then swap after getting in touch through a mutual friend.
PS. Thank you, Hemba, for being the driving force behind this community and for your compassion toward those attempting to create v1/v2 token pairs.
The swap occurred on Kiwi, which worked flawlessly in our case.
I hope I don’t have to emphasise the importance of using cold storage, people.
First impressions…
The community is highly supportive and genuinely believes in the v1 movement. They claim that v1 will eventually flip v2. I received a lot of engagement and messages after I shared it on Twitter.
I’ll leave “opposition” to v2, copyrights, and other issues for another story because they’re irrelevant to this one.
Does this transaction change my mind about the v2?
A resounding no!
V1 and V2 are both identical and dissimilar.
As a firm believer in free markets, I always value market rewards for specific items. As a result, v2s are more valuable at the moment (floor at 65 ETH), while v1s serve as a safety net in case something changes.
V1s are also a smaller community with more influence and power in specific cases. However, I believe that as more people join in, this will change.
“He who predicts the future lies, even if he tells the truth”
Both v1 and v2 are significant in the NFT space and will be extremely valuable in the long run. Punks are being displayed in museums worldwide, as evidenced by our recent visit to the ICA Miami during Art Basel.
Who knows what will happen in ten or twenty years? In any case, the v1/v2 story will go down in history as a pivotal point. We will see an increase in the number of museums and auction houses interested in CryptoPunks (v1 in particular).
Finally, I don’t rule out the possibility of v1 flipping v2, so I wanted both.
In any case, CryptoPunks are blue chip NFTs and have been compared to the greatest works of art in real life. I am extremely grateful for the opportunity to have them both.
This is not a financial advice. All views are my own.
