CryptoPunks are Ethereum-based Crypto Collectibles. Unlike some other crypto-collectibles, CryptoPunks do not live on the blockchain, but rather on the Ethereum network. They are a valuable and interesting new addition to crypto-collectibles and digital assets.
A Crypto Punk is an ERC-721 nonfungible token on the Ethereum blockchain. The Crypto Punk lives on the Ethereum network they are not stored in a smart contract or even directly on the blockchain. This gives you different features than other crypto collectibles.
CryptoPunks act more like a digital good than a crypto-collectible because they do not replicate the original CryptoPunk artwork in physical form, nor will they ever become rare due to a market crash.
The value of a Crypto Punk is directly related to the user knowing that it is a part of what makes up the Crypto Punk blockchain. The more people own them, the better it is for everyone else. Although there is no rarity, there are only a certain amount of 21 million CryptoPunks available in existence.
The Crypto Punk exists in different individual states. You can view each state as different versions or versions of one token.
What Are CryptoPunks?
CryptoPunks are digital assets that exist on the Ethereum blockchain. The Crypto Punk is an ERC721 token, a non-fungible token. There can only ever be 21 million blockchains CryptoPunks in existence at one time.
Unlike many other crypto collectibles, the Punk is not stored within a contract on the blockchain but is instead represented by its contract address, this allows them not to reside on a smart contract and gives you different features as opposed to other crypto-collectibles like CryptoKitties.
The CryptoPunks are unique avatars that are non-fungible token (NFT) images. They have a size of 24 by 24 pixels and an 8-bit aesthetic. On the NFT market, they are regarded as works of art and represent a new form of asset tokenization. As a result, their value is quite high, and they can fetch prices of up to several million dollars.
There are 10,000 of these photographs, all of which have a pixelated, punkish appearance and represent either male or female characters, in addition to some that look like zombies, apes, or aliens.
Each punk is a one-of-a-kind piece that may be purchased either directly from its owner or at one of the world’s most renowned auction houses, such as Christie’s or Sotheby’s, for astronomically expensive sums.
The most expensive coin ever sold was CryptoPunk 5822, which was purchased by Deepak Thapliyal, the chief executive officer (CEO) of Chain, a business that develops cloud-based blockchain infrastructure. He spent roughly 24 million dollars (at the time), which was equivalent to 8,000 ether (ETH). In September 2022, the price of one ETH equivalent to almost $4.5 million was paid for CryptoPunk 2924.
When all of the sales are accounted for, the total value of the trades created by the Ethereum NFT collection is greater than $2.4 billion.
On the Ethereum network, only one person can claim ownership of a CryptoPunk at any given time. The developers, who referred to them as “punks,” initially distributed free copies of the game’s currency before it gained widespread popularity and significant value.
History of CryptoPunks
In October 2017, they were developed. Before this, they were a part of the popular trading game CryptoKitties. While many thought CryptoKitties was an interesting experiment, their lack of functionality made them barely useful in practice.
The team behind the game had to sell digital assets to fund a very rapidly growing project. While it’s unclear if there will be any future developments on the CryptoPunk front, this is unlikely considering that the team has since shifted its focus onto other projects altogether.
In 2017, two programmers working for the New York City-based mobile software company Larva Labs, which creates applications for both iOS and Android smartphones, were responsible for the introduction of CryptoPunks.
The initial distribution of blockchain tokens saw the developers hand out 9,000 free tokens while the network itself kept 1,000. The possession of an Ethereum blockchain was initially the only prerequisite for ownership.
The developers started the project as an experiment with the goal of entertaining other people, but it rapidly evolved into something far larger and more important than they had anticipated.
Larva Labs, the company that developed CryptoPunks, generates revenue by selling the NFTs that they hold. Larva Labs, on the other hand, does not wish to reveal how many CryptoPunk NFTs it currently holds.
The creators of the game took cues for the punks’ unconventional style from the London punk scene of the mid-1970s, the science fiction novel Neuromancer written by William Gibson in 1984, the science fiction film Blade Runner directed by Ridley Scott in 1982, and the cyberpunk movement influenced by the French electronic music pairing Daft Punk.
What’s so special about them?
CryptoPunks act more like a digital good than a cryptocurrency and will not become rare due to an event like the recent crypto crash. The CryptoPunk is stored on the Ethereum network, though it does not reside in a smart contract, making it a non-fungible token (NFT).
Since there is no way to clone the skin color of punks or replicate their facial expression, they have value because of their rarity and exclusive nature of them.
The fact that CryptoPunks is one of the oldest NFT projects currently in existence and the first set of completely random profile pictures really to click with the cryptocurrency community is one of the primary factors that contribute to the high demand for these images.
They have sparked the creation of an increasing number of profile image NFT sets, such as Bored Ape Yacht Club, Doodles, and a great many others; each of these sets only serves to bolster the influence and legacy of the original initiative.
There are a few well-known people that hold CryptoPunks as well, like the artist Jay-Z, the YouTube star Logan Paul, and the tennis champion Serena Williams.
In addition to this, there are distinct identifiers that set particular CryptoPunks apart from others, making them more expensive and desired by collectors.
Since alien avatars are the most uncommon of the randomized images, CryptoPunks with alien designs is among the most expensive NFTs that have been sold up to this point. In addition to that, there is a desire for zombie and ape designs.
However, the vast majority of CryptoPunks simply resemble people, albeit with a variety of features and accessories, and the plainer-looking ones may be purchased for prices that are relatively close to the market floor on NFT marketplaces.
The community that has formed around this project has planted the seeds for the growth of a thriving ecosystem that is built upon the backbone of Ethereum’s NFTs.
CryptoPunks not only provide several benefits over other blockchain projects but also have an appeal regardless of your level of investment, making them extremely attractive to more than just crypto enthusiasts and non-investors alike.
The future of CryptoPunks:
Even though CryptoPunks is a very old project, it still has many fans. Many people invested in this project, so they are likely to see the value of their CryptoPunks grow over time.
In addition to this, if you have a CryptoPunk that you feel represents your personality or defines your interests, someone else may want to buy it from you eventually; as the value of this token increases alongside the overall popularity of blockchain assets and collectibles in general.
This ensures that the popularity of CryptoPunks won’t be confined to its specific blockchain and instead will continue into other projects, where it has already begun to take root in a new and more diverse ecosystem.
The future of CryptoPunks looks bright, but we still don’t know who is going to be the next big investor. We don’t know who is going to be the new CryptoPunk owners. Maybe you will be the next owner of a unique personality CryptoPunk!
Conclusion:
The goal of this article was to provide you with a basic overview of CryptoKitties and NFTs in general. We hope that you feel fully informed after reading this article and can continue to learn more about the NFT phenomenon in general.
Now, if you are planning to start using CryptoPunks and other non-fungible tokens, then please make sure to read the terms & conditions of every DApp you plan to use before you start playing. The fact that NFTs can be lost forever due to scams and hacks is an incessant worry for most people who are new to blockchain technology.
In conclusion, we recommend that you stay safe and only purchase a few NFTs until you get the hang of things.
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