What Are CryptoPunks?

What are Cryptpunks

CryptoPunks are unique digital art pieces that spawn algorithmically, with individually distinct characteristics and peculiarities. There are 10,000 CryptoPunks in total. And each of them is absolutely distinct. In addition, because some of these characteristics are common to a small number of other punks, some are more valuable than others. 

CryptoPunks began as a test of the value of non-fungible tokens (NFTs) and digital art. Could indeed just a few rows of computer algorithm sequences, more importantly, convert into a sense of significant ownership?

The Creation of Crytopunks

CryptoPunks debuted in 2017, well before the NFT frenzy. Initially, anyone having an Ethereum wallet got them for free. The quirky set gradually gained prominence seeing auction sales hitting $7.58 million in 2021.

READ ALSO: How to Buy CryptoPunks NFT

Matt Hall and John Watkinson of NY-based Larva labs created CryptoPunks. They got their motivation from the defiant punk rock culture that mimicked the blockchain revolution that was upcoming during that moment. In a tweet on April 8, 2021, Larva Labs discloses that they created them “four years ago.” They admit that they had no idea it would become the success it is today. 

After setting forth a pioneering NFT project, larva labs influenced more digital artists to create art and offer it as  NFTs. This put Crypto Punks on the Front Lines of the movement of digital art. 

Why is CryptoPunks Selling for $ Millions?

Photo Credits: Larva Labs

Initially, these 8-bit pixels appear quite unremarkable. Additionally, these CryptoPunks are free to access, copy, and save. This begs the question, why, then are they worth millions? This is because they all have distinctive IDs in the form of NFTs. 

Attaching such an NFT to a CryptoPunk is something made possible through a  procedure called minting. Each coin is given a unique key that can be kept on the Ethereum blockchain during minting.

In other words, just one individual can own these CryptoPunks, because only one person can be in possession of the key code that accesses blockchain ownership data. Obviously, CryptoPunk copies lack this Identifier. 

So, by purchasing this NFT, you are purchasing the one and only authentic edition of the digital asset.

Unique Attributes

By virtue of algorithms creating each CryptoPunk, you can rest assured that no two CryptoPunks are alike. Furthermore, not all qualities and features are made equal. While most resemble punk rockers, there are a few oddities that include apes, zombies, and aliens.

Notably, 10,000 CryptoPunks exist. With 6,039 male characters and 3,840 female characters. In addition, 406 punks have headbands, and 961 smoke cigarettes. Every single punk has its own page that showcases its attributes as well as identifies its status of ownership.

The Top Three CryptoPunks Auctions

In 2020, CryptoPunks sold for a record $489 million, with every single punk averaging a selling price of $53,000. While all punks are very unique, there are some that have an uncommon combination of traits that only a few others possess. Crypto investors specifically seek out these particular types of punks to invest in.

  • The most expensive collection ever sold is the #7523. Bought by billionaire Shalom Meckenzie for $11.7 million.
  • The second most expensive one sold for a whopping $7.58 million for Crypto Punk #3100. Only 8 other similar alien CryptoPunks exist. Making it extremely unique.
  • In third place is CryptoPunk #7804, which auctioned for $7.57 million. It was a blue-colored CryptoPunk. Some of the unique features he possesses are a pipe and forward cap.