CryptoPunks is a 10,000 strong collection of 8-bit avatars that are one of the most popular crypto art projects.
Even though CryptoPunks are a 8-bit avatars and are not worth much to the average person because of their digital form, one Punk can fetch well over a million dollars. This means that anyone who bought them for free in 2017 could make a fortune.
In November 2018, a CryptoPunk was purchased by $443. The same Punk was then sold for $4.4 million in August 2021, almost a million percent return.
Each Punk differs in race, gender or several other attributes. There are 6,039 men and 3,840 women, as well as 88 zombies. Zombies tend to be the most expensive because of their scarcity. Just this past August 2021, there was a buying frenzy amongst whale, resulting in Cryptopunks increasing 53% on average in a month.
The average sale price for Cryptopunks is 1,920 Ethereum (ETH) at the time of this article, or about $7.1 Million as of October 2021. Another popular Ethereum based NFT collectible is Bored Ape Yacht Club, with quite a similar idea.
Who Created CryptoPunks?
The creators of Cryptopunks are Larva Labs, a Brooklyn-based art studio, created them in 2017. They are non-fungible tokens (or NFTs) that are Ethereum-based cryptocurrency tokens. CryptoPunks was the third most-sold project as of August 2021. It is followed by NBA Top Shot, and Axie infinity.
Matt Hall and John Watkinson, founders of Larva Labs, created a piece computer code that generated 10,000 characters automatically in 2017. The characters were originally intended to be used in a computer game, but they ended up being released as NFTs. The 70s British punk scene inspired the avatars.
This scene reflected the rebellious nature of the rise in blockchains. Although anyone can download or take a picture of these avatars, only one person can 'own' an avatar. This is why they are so popular. Every Punk can have up to seven different facial characteristics. Some wear fedoras, others wear tassel-hats. Some may be smoking a cigarette, and others are wearing makeup. Only eight punks have any attributes, while one has seven.
Why Are CryptoPunks So Expensive?
NFT art pieces have been sold at auction for millions of dollars. An NFT made by Beeple sold for more than $60 million in March. Other NFTs have also sold for similar high prices. CryptoPunks is also in this situation. Why?
You may be aware that buying art in the NFT form makes you an individual owner with all documentation. CryptoPunks is a smart investment for those who trust the NFT market and see it only growing in the future.
Many wealthy or famous individuals have also began to adding Cryptopunks as their profile pics on various social media platforms. In fact, soon twitter will allow you to verify you own an NFT in order to add it to your profile picture; this is another way to show off your wealth online .. similar to those boarding private jets on instagram. Punk's make an appearance in many trendy places.
Another reason they are so valuable is the fact that people keep buying them. They are put up for sale at Sotheby's and Christie's prestigious auction houses, and appear on billboards throughout New York City. Famous people then buy them.
The Ethereum blockchain makes it easy for everyone to track who has what. Some punks are more rare than others and fetch higher prices. The NFT art space is only growing, with many traditional artists entering the space such as Damien Hirst, Cleon Peterson and more.
They are simple, easily recognizable and easy to identify. CryptoPunk owners also have a social stigma. Many of them replace their Twitter profile photos with CryptoPunks as proof they are wealthy enough to spend money on a picture, or that they were able to obtain them for a reasonable price, or even free. One investor compared it to buying the Mona Lisa two years after it was created.
Are CryptoPunks a Good Investment?
This is possibly the most popular question when it comes to Cryptopunks, and for a good reason. Assuming you can afford one, you're well off already.
Punks seem to be one of the original NFT projects to launch on Ethereum and assuming NFT art continues to grow in the future, Cryptopunks will as well. Because punks are one of the oldest projects in the space and many rich/famous individuals continue to purchase them. This adds to the validity of the Cryptopunks, think of them like blue chip art.
Like Andy Warhol, Banksy or Picasso, all these artists work is considered blue-chip art. Many wealthy individuals collect their work throughout the years and it's paid off because how much they've increased in price. Inflation is definitely a factor into all this because they're considered a commodity, but that's a whole factor in itself.
An NFT's popularity and public perception will generally increase its value. It is possible, however, for an NFT to be worth a lot less than it is now. CryptoPunks' value has risen exponentially.