CryptoPunks

CryptoPunks is regarded as one of the earliest NFT projects developed on Ethereum. It consists of a fixed supply of 10,000 algorithmically generated 24x24 pixel portraits with random attributes. The project was created by Larva Labs, a development team of two working on different projects, including games, utilities, digital art and design, and web infrastructure. Larva Labs kept the first 1,000 CryptoPunks, called DevPunks. They gave the other 9,000 Punks to those with Ethereum wallets at no charge, excluding the cost of gas fees (11 cents at the time).Sales were slow to start, but CryptoPunks sold out after getting exposure from different media outlets like Mashable. Larva Labs created a pixelated character generator, drawing inspiration from the punk scene in London and from cyberpunk films and novels.

CryptoPunks pixelated characters were created by a character generator and exhibit a mix of eighty-seven unique attributes referred to as traits. The designs drew inspiration from the punk scene in London and from cyberpunk films and novels. They include features like rosy cheeks, beanies, mutton chops, 3D glasses, pigtails, lipstick, necklaces, hats, pipes, earrings, and eye patches. The total number of traits one CryptoPunk can possess is seven. However, only one CryptoPunk with seven traits exists, #Punk 8348. It possesses buck teeth, a cigarette, a top hat, an earring, a mole, classic shades, and a big beard. Eight CryptoPunks have no traits; these are called Genesis Punks. Most of them possess two or three attibutes. In the collection are nine aliens, twenty-four apes, eighty-eight zombies, 3,840 females, and 6,039 male Punks. The number of traits affects both the value and the scarcity of a CryptoPunk.

CryptoPunks derive value and popularity from token rarity and scarcity. Plain-looking Punks are of lesser value compared to the rare Punks. Alien CryptoPunks are rare and expensive.

Other CryptoPunks' demand drivers include the collection's popularity among public figures, including rapper Jay-Z, tennis champion Serena Williams, and YouTuber Logan Paul. The NFTs are utilized as profile pictures on different social platforms, further boosting their demand.

Investors and digital art enthusiasts pay extravagant amounts to own rare CryptoPunks.

• CryptoPunk #7523 is regarded as an alien Punk and portrays an alien wearing a surgical mask. It was purchased for $11.75 million at the London auction house Sotheby’s. The NFT was bought by Shalom Meckenzie, a major shareholder in DraftKings.
• Just twenty-four ape Punks exist in the collection, and an investor paid $10.26 million to purchase ape CryptoPunk #4156 in December 2021.
• CryptoPunk #7804 depicts a pipe-smoking alien putting on a hat and sunglasses. Figma's CEO, Dylan Field, bought it for $7.56 million.
• In March 2021, CryptoPunk #3100 was sold for $7.51 million. CryptoPunk #5217, an ape Punk with red knitted headgear plus a gold chain, was sold for $5.44 million.

CryptoPunk #7523

In 2022, Larva Labs was criticized after the sale of V1 CryptoPunks, an earlier iteration of Cryptopunks that was abandoned following a glitch uncovered in the smart contract. Larva Labs was accused of issuing mixed statements, since the company previously said that the V1 Punks weren't regarded as real CryptoPunks. Larva Lab's cofounder, Matt Hall, made a statement on the Larva Labs Discord, apologizing for the sale of the V1 Punks. Additionally, some CryptoPunks holders complained about the project's state, specifically the unclear extent to which owners are able to commercialize their owned images.

Other complaints surround Larva Labs’ hands-off approach, which is different than other well-known profile picture (PFP) projects. In December 2021, popular NFT collector and Nouns project co-creator known as 4156 sold his CryptoPunks NFT for the sum of $10.26 million worth of ETH. 4156 decided to exit the project as a result of Larva Labs’ IP rights situation handling, as well as the attempted removal of unofficial derivative projects through DMCA takedown requests, like the reverse-facing CryptoPhunks.

On March, 11, 2022, Yuga Labs, the creators of the Bored Ape Yacht Club (BAYC), confirmed the acquisition of the intellectual property (IP) of the CryptoPunks and Meebits collections from Larva Labs.

Nicole Muniz, Yuga Labs' CEO said:

"When we set out to create within the NFT space, we did so with a deep admiration for CryptoPunks and the visionary work of Matt and John. We’re honored to take on the stewardship of these brands and the communities behind them, and are very excited to build alongside CryptoPunks and Meebits holders as we step into this new world. That said, we want to make it abundantly clear to Yuga’s existing community that the BAYC ecosystem will always stay at the center of our universe."