In this post, I reviewed CryptoPunks, a collection of NFTs hosted on the Ethereum blockchain.
When it first launched in 2017, users could get a Punk for free but today (11/01/2022), the cheapest one goes for 60.69 ETH ($188,943.14).
As of December 1, 2021, CryptoPunks were listed for sale at prices ranging from almost $400,000 to $24 billion.
Interestingly, several Punk owners flaunt them as avatars on their social media handles.
Hmm…What is the big deal about CryptoPunks and why are they so expensive?
Keep reading and I’ll tell you.
Post Summary
- What Is CryptoPunks?
- Why CryptoPunks Are So Expensive
- How To Buy CryptoPunks
- Is CryptoPunks A Good Investment?
- Conclusion
Click on any item above to read its details immediately.
1. What Is Cryptopunks?
CryptoPunks belong to the category of tokens known as Non-fungible tokens (NFTs).
They are 24×24 pixel art images and are hosted on the Ethereum blockchain.
There are only 10,000 CryptoPunks (Punks for short) characters in existence.
Each image is unique, no two are exactly alike.
Additionally, they are mostly punky-looking guys and girls, and a few rarer types like apes, zombies, and aliens.
Here’s an overview of all the Punks:
On the CryptoPunks marketplace, every punk has its profile page, where its attributes, ownership/for-sale status are displayed.
Larva Labs studio launched CryptoPunks in June 2017.
Canadian software developers Matt Hall and John Watkinson founded the studio.
Their goal was to create a diverse collection of characters that will attract a wide range of collectors.
Furthermore, the project was inspired by the London punk scenes, the Cyberpunk movement, and the electronic music artists Daft Punk.
At the time, there were no price tags, and interested folks quickly claimed all the available punks.
These owners are responsible for the sales that are making news today.
Moving on, let’s see the reasons why CryptoPunks are so expensive.
Keep reading!
2. Why CryptoPunks Are So Expensive
a. Limited supply
As mentioned, the total supply of CryptoPunks is 10,000.
This creates a feeling of scarcity and eventually an increase in value.
Especially since no two punks are exactly the same.
It’s just like there would only ever be 21 million Bitcoin and we can already how the number one crypto is booming.
Suggested read: Bitcoin Halving Is Changing Crypto – This Is The Complete List Of Coins That Halve
Moreover, the authenticity of each CryptoPunk is verifiable through their unique IDs on the chain.
Thus, the fabrication of Punks will be difficult.
b. People value art
The second reason I believe CryptoPunks are so expensive is that people place a high value on art.
These Punks are digital arts with unique features.
Talk about headbands, caps, shades, gold chains, etc.
These several attributes make them rare.
And you know, the rarer an item, the higher its value.
Also, most Punks take the shape of a regular human’s head.
And as such, most buyers go for Punks they can identify with once they can afford it.
Others just buy it because they derive some form of enjoyment from it.
For example, Richerd Chan, a Canadian engineer and entrepreneur, spent $80,000 or 45ETH on a Punk with the claim that “it’s a very natural representation of myself.”
c. Popularity
Thirdly, CryptoPunks are expensive because of increasing popularity.
Already, celebrities like Jay-Z, Snoop Dogg, Gary Vee, and Uniswap’s founder – Hayden Adams, etc. own images from the collection.
Also, in June 2021, CryptoPunk #7523 sold for $11.75 million at Sotheby’s auction house.
Additionally, CryptoPunks has been featured in different press including Mashable, CNBC, Salon, The Outline, BreakerMag, The Financial Times, Bloomberg, and The New York Times.
Superb!
Furthermore, in August 2021, the payment gateway giant Visa revealed that it had bought CryptoPunk #7610 for $150,000.
Looks like everyone wants to identify with a Punk. LOL!
d. Age
Age is another factor that is contributing to the huge price tags on CryptoPunks.
Even in physical art, items that have stayed longer tend to have a socio-cultural significance.
I believe the same attribute is helping the punks collection.
It launched in 2017 and is one of the oldest NFTs.
e. Social capital
This might shock you but ‘social capital’ is a thing in the digital world.
It is measured by the kind of NFT that you own.
The more expensive NFTs you can acquire, the more eligible you are to join an elite group.
That’s why CryptoPunk owners can flaunt their assets all over social media.
Amazing!
f. Attributes
The attributes of CryptoPunks also contribute to their high prices.
Investors are willing to pay up to own attributes like 3D glasses, VR glasses, tiaras, beanies, a cigarette, earrings, a mole, buck teeth, Hoodies, and top hats.
Check out the complete list of attributes here.
As you would expect, some Punks have more than one attribute.
The more attributes a character holds, the more expensive it is.
Therefore, it’s safe to say that not all Punks are created equal.
Again, the 24 apes and 88 zombies in the collection are priced higher than the more typical Punks.
Let’s not get started on the “alien” characters, which are just 9.
Buyers also put ‘skin color’ into consideration.
And because the Whites seem to be more interested in NFTs, the Punks with white skin are costlier.
Furthermore, the male Punks have a larger market following statistics.
So, it’s not surprising that they are more expensive.
Nevertheless, people will buy what they can identify with and what they can afford.
Now that you know why CryptoPunks are so expensive, let me show you how you to get one in the next section.
Tag along!
3. How To Buy CryptoPunks
They are quite easy to buy.
All you need is your Metamask wallet and a lot of ETH.
If you’re ready, take these simple steps:
i. Go to the CryptoPunks marketplace.
ii. Accept the ‘Terms and Conditions’ by the right corner. Then allow access to your Metamask wallet.
Click on [Next] > [Connect] to proceed.
iii. Then select your preferred Punk to see its attributes.
iv. Like what you see? Then hit the ‘Buy’ button
v. Confirm the payment on your wallet and the Punk is yours.
*If you prefer, you can ‘Bid’ rather than ‘Buy’ and claim the item when it is due.
So, should you buy CryptoPunks? I shared my thoughts in the next section.
Keep reading!
4. Is CryptoPunks A Good Investment?
Are you still asking? LOL
I believe it is and the right question should be whether you can afford it (no offense).
CryptoPunks are digital arts and their value will keep increasing over time.
It’s the same with what happens in physical art collections; the longer they’re here, the greater their value.
Also, remember that the supply of CryptoPunks is limited.
This increases its scarcity and eventually its value.
Besides, the project inspired the modern CryptoArt movement including the creation of the ERC-721 standard.
*ERC-721 is an Ethereum standard developed for the creation of non-fungible tokens
And considering the press attention, it has gained so far, the future is bright for CryptoPunks.
Moreover, it is obvious that many folks are interested in the project.
In August 2021, CryptoPunks recorded almost $680 million worth of transaction volume.
As of 13/01/2022, over 12,000 sales have been completed in the past 12 months.
Plus, the general NFT market hit a total sales volume of close to $14 billion in 2021.
But don’t take my word for it.
Do due diligence before investing in a Punk.
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You can also join our Telegram community at https://t.me/ctmastery
5. Conclusion
This is where we’ll draw the drapes in our discussion on CryptoPunks. I hope you enjoyed the read.
Now, over to you; what’s your take on this project? Do you think it is worth the buzz?
Will you buy a Punk? Perhaps you already did, what’s your Punk’s number?
Tell me in the comments, let’s engage!
Also, share this article with your friends, thank you!
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