The NFT asset class is performing at a stellar pace. Once provocateurs’ of crypto are now purveyors, hodlers, and proponents of this highly sought out class of asset. The CryptoPunks set the tone and pace of NFT adoption.
CryptoPunks are the most ancient NFT collection minted in 2017.
Non-fungible tokens (NFTs) started to jettison as a huge trend in the crypto industry throughout 2021. The demand for unique, rare, and scarce tokenized items continues to shoot through the roof at the time of this writing in January 2022. Artists, celebrities, and creators are launching different NFT projects to satisfy the insatiable cravings for the new asset class.
But while there are now hundreds if not thousands of non-fungible tokens (NFTs) flying around, with each aiming to become the next megahit, the whole NFT craze started with one project – CryptoPunks. And fun fact – it was back in 2017. Yes, you might guess what was their price back then.
Today, CryptoPunks are some of the most popular and expensive NFT collections in the world, with some Punks selling for tens of millions of dollars. But what exactly are these crypto arts, and why are they so popular and expensive?
What Are CryptoPunks?
CryptoPunks is a well-known pioneer in the world of NFTs, as it is one of the earliest series developed on the Ethereum blockchain.
Created by the New York-based software firm Larva Labs in 2017, CryptoPunks is a collection of 10,000 algorithmically generated 24×24, 8-bit-style tokenized and pixelated art images.
Each CryptoPunk NFT is randomly generated from several different attributes, effectively allowing them to be unique as no two CryptoPunks are exactly alike.
Types of CryptoPunks
The CryptoPunk collection consists of a vast array of designs featuring humans, zombies, aliens, and apes. The more unique their combination of distinctive features are, the rarer the CryptoPunk NFT.
There are nine aliens, 24 apes, 88 zombies, 3,840 females, and 6,039 male Punks, with each possessing some distinctive features, including mutton chops, 3D glasses, rosy cheeks, pigtails, buck teeth, lipstick, beanies, and many more.
The first 1,000 CryptoPunks were reserved for the project’s developers and are known as the Dev Punks. About eight Punks have no distinctive features, and they are often referred to as the Genesis Punks while one CryptoPunk, #8348, has the seven basic attributes and is one of the most coveted art pieces in the CryptoPunk collection.
The First Punks Were Given for Free
Interestingly, the idea behind the world’s most popular NFT project started as an experiment.
In 2017, Matt Hall and John Watkinson, the founders of Larva Labs, developed a software program that would create thousands of different pixelated images of misfits and non-conformists.
The idea was to use the program and the avatars in a smartphone app or game and had been inspired by the London Punk movement of the 1970s.
But little did they know that their small project would pioneer the massive NFT industry as we know it today.
Subsequently, the collection of 10,000 CryptoPunks was launched on the Ethereum blockchain at a time when the ERC-721 token standard was not even a thing.
CryptoPunks were initially issued for free, with every Ethereum wallet holder having access to the NFT collection. Shortly after, the 9,000 available Punks were snatched up, leaving the rest for the developers.
Fast forward to 2020, the NFT market exploded. Demand for digital images with ownership rights on the blockchain soared, and CryptoPunks became the most sought-after.
Their values on secondary NFT marketplaces such as OpenSea shot through the roof resulting in multi-million-dollar sales, auctions at some of the top auction houses in the world, including Christie’s and Sotheby’s, and attracting several high-profile investors, including Jay-Z, Gary Vaynerchuk, and more.
As of January 2022, CryptoPunks have generated over $2.5 billion in total traded volume on OpenSea alone, with the popularity and market value still increasing as the NFT space reaches mainstream users.
But why are these tokenized images so popular? Let’s find out.
CryptoPunks: The Most Ancient NFT Series
When there’s high demand for a commodity with limited supply, the price will jump sky-high. And that’s the case with the revered CryptoPunks. In fact, the NFT is so popular that Visa had to join the craze by purchasing a Punk for $160,000.
But the big question is – what really drives the demand for something critics would call a bunch of pixelated images?
While there are several reasons for the increasing demand for CryptoPunks, two factors stand outage and scarcity.
The CryptoPunk collection is revered as one of the oldest NFT projects around. An aged NFT, such as CryptoPunk, is valued as much as a famous old painting like Picasso’s “Femme nue couchée au collier” of 1932 that was purchased and tokenized by TRON’s Justin Sun.
So, the age of CryptoPunks on the blockchain adds to their desirability. Most investors simply buy Punks to get their hands on one of the oldest NFT artworks still around.
Scarcity: Jay-Z, Serena Williams, and More
NFTs, in general, derive much of their value and popularity from the rarity and scarcity of tokens. CryptoPunks are also not left out.
The limited supply of CryptoPunks available for purchase adds to the thrill and pushes demand to the moon and beyond. The rarity of most CryptoPunks makes them highly coveted.
The plain-looking Punks are valued less than the rare Punks. For instance, alien CryptoPunks are among the rarest in the entire collection. As a result, they are super expensive.
Other demand drivers for the NFT collection include its popularity among high-profile individuals, including Jay-Z, Serena Williams, and many more. The images have been used as profile pictures on social platforms, which really clicked with the crypto community, further boosting the demand for them.
Now, let’s take a look at some of the most expensive CryptoPunks sold to date.
A Sampling of the Most Expensive CryptoPunks Ever Sold
Below is a sampling of the most extravagant amounts that investors and avid digital art collectors have paid to get their hands on rare CryptoPunks.
CryptoPunk #7523 is an alien Punk, and there are only nine of them in the collection. This makes it one of the rarest art in the collection. It depicts an alien wearing a surgical mask, and someone paid a jaw-dropping $11.75 million for the NFT at the popular London auction house Sotheby’s.
The Punk was purchased by Shalom Meckenzie, a major shareholder in the daily fantasy and sports betting firm Draftkings.
With only 24 ape Punks in the collection, an investor spent a hefty $10.26 million to acquire CryptoPunk #4156 in December 2021, making it the second most-expensive Punk ever sold to date.
The CryptoPunk rage continues with the Bored Apes currently leading the frenzy as a new additions to the NFT asset class. A plethora of newly minted collections are being unveiled daily such as Pug Life shown below.
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