NFTs took the internet by storm in 2021. During the infamous NFT summer, we saw projects like BAYC gain huge traction, with prices jumping through the roof, and big names buying into NFTs left and right. And while it’s great to see NFTs finally taking off, they actually got their start years ago. CryptoPunks is one of the original NFT projects, released back in 2017.
Today they are the most valuable NFT project on the market. And it’s extremely difficult to get your hands on one of these pixelated punks. But what exactly is a CryptoPunk, and how did they become an icon in the growing NFT industry? Read our CryptoPunks review to get educated on this foundational NFT project.
What Is CryptoPunks?
CryptoPunks is an NFT collection containing 10,000 unique images of pixelated people. Each 24×24 pixel image contains traits that are algorithmically generated. The art itself is very simple. At a glance, you wouldn’t guess that one of these images is worth more than $150,000. But if you’re into NFTs, you know that these JPEG images might be one of the best crypto investing decisions you ever make.
Punks vary based on skin color, hairstyle, eye color, and accessories like cigarettes or earrings. The project was launched before anyone knew what NFTs were. No one anticipated that digital collectibles on the blockchain would become what they are today.
CryptoPunks had a modest launch back in 2017. But today they have a cult-like following. Every NFT collector aspires to own a CryptoPunk, even if there are countless new projects launching all the time, at a fraction of the price. Had you bought one or two punks back then, and held them until now, you’d be sitting on some serious gains.
CryptoPunks Rarity
As of January 2022, the lowest you can pay to get your hands on a CrpytoPunk is about 60 ETH or $190,000. But sales of CryptoPunks often stretch into the millions.
Why is that? The collection has a built-in rarity factor. Certain traits within the collection only occur a handful of times, making them rare. With a smaller supply and increasing demand, the price of those naturally increases. For example, most punks are humans. But there are a handful of zombies, apes, and aliens, which are the rarest, and thus, the most valuable. Other examples of rare rates include a gold chain around the neck, a medical mask, virtual reality goggles, and a tassel hat.
The least rare punks in the collection generally don’t have any accessories other than an earring. They have basic hairstyles or a cap. These “common” punks are the ones you can get for the floor price (currently 60 ETH). One of the rarest punks, an ape (of which there are nine) recently sold for $10 million, setting quite a few records.
Benefits of Holding CryptoPunks NFTs
Most of the NFT projects that came out in 2021, and many that are bursting onto the scene in 2022, come with ownership benefits. For example, holders of BAYC get access to digital, collaborative art canvas, along with an online community to connect with other holders (which includes many celebrities and high-profile investors).
They also get intellectual property rights over any NFT image that they own. So BAYC holders can print their ape on shirts or other merchandise and sell it.
So what does CryptoPunks offer? None of that. CryptoPunks was launched at a time when NFT utility wasn’t a huge concern. It’s a collector’s item through and through.
If you owned the Mona Lisa, all you would do is display it. There’s nothing else you would do with such a valuable work of art.
CryptoPunks is similar. It’s the ownership, the holding of one of the original NFT projects that matter.
You do get bragging rights, however. And in the online world, bragging rights are worth a lot.
History of the Punks
The CryptoPunks NFT project came out in the summer of 2017. It was created by a two-person team that ran Larva Labs studio.
Canadian software developers Matt Hall and John Watkinson took inspiration from things like the punk scene in London as well as the science-fiction genre, cyberpunk.
The two developers behind the project have a long history when it comes to software development, having launched countless projects in the past, and working with high-profile clients like Google and Microsoft.
The team also went on to launch the project Meebits in 2021, an NFT collection of 20,000 3D, pixelated characters.
But back to CryptoPunks, the punks were made available for free. All you had to do to collect your punk(s) was pay the Ethereum gas fees.
In 2022, gas fees on Ethereum are often above $100 for a single transaction. But back in 2017, with little network activity on Ethereum, gas fees were almost non-existent.
The team held onto 1,000 CryptoPunks while releasing 9,000 to the public. Contrary to what you might think, the 9,000 NFTs were not picked up right away.
But then the website Mashable published a story about the project and the remaining punks were snatched within 24 hours.
The rest, they say, is history, as eventually the project went viral. Auctions at Christie’s, celebrities using punks as their profile picture, and even major corporations purchasing punks have been common in recent months.
NFTs that Pre-Date ERC-721
While most NFTs minted today are based on the ERC-721 token standard, CryptoPunks came out before it existed. So CryptoPunk is one of the few NFT projects you can buy that isn’t an ERC-721 token.
If you’re a digital collector, that alone might be a selling point for you. It’s kind of like buying the original sketches of a painting.
CryptoPunks, however, was a huge milestone and inspiration for the creation of the ERC-721 token standard, which all of us NFT collectors utilize on a daily basis today.
The Future of CryptoPunks
So what about the future of CryptoPunks? Where is the project going? No one really knows.
It’s common for new NFT projects to include roadmaps, future utility, and plans to carry the brand forward into the future. But CryptoPunks was built before this became the norm.
At the time of writing, the team hasn’t announced any future developments of the CryptoPunks project or brand. However, as the original NFT project, this doesn’t mean CryptoPunks will ever fade away.
It has a loyal collector base and its legacy will last a long time.
Can we expect more from Larva Labs? They’re probably cooking something special up right now. And anything that this team produces is going to be very valuable, so make sure to stay up to date via social media. You can also join their discord server for direct interaction with the team.
CryptoPunks Derivatives
Derivative projects are those that are heavily influenced by a previous project. CryptoPunks has spawned many punk-related derivative projects. Some may be worth collecting, while many aren’t. None are affiliated with CryptoPunks.
One of the most promising is 3D FrankenPunks. Released in January 2022, this is a 3D art project based on CryptoPunks. 10,000 NFTs make up the collection, with more than 90 unique traits.
And the best part? With the funds generated from the NFT sales, the team behind the project is purchasing actual CryptoPunk NFTs and storing them in community wallets.
Purchasing a 3D FrankenPunk provides indirect access to the CryptoPunk legacy.
Dead Fellaz
A collection of 10,000 undead NFTs, Dead Fellaz has built up a strong community. The floor price on the project has been rising steadily, but it’s still very affordable to buy into compared to CryptoPunks.
Robotos
A newer project, Robotos has become very popular thanks to its fresh, yet cute art style. When you buy a Roboto NFT, you get the original GIF files, as well as a PNG file to use as your profile picture.
Alien Frens
Launched in December 2021, Alien Frens has become one of the most popular NFT projects in just a matter of weeks. The project was released for a 0.02 ETH mint price and hit a 3.5 ETH floor price less than four weeks later.
The project has a strong road map ahead, which includes future releases, in-real-life events, and much more. Getting into this project now could be a great opportunity.
Bottom Line
CryptoPunks was not the first NFT ever launched. But everyone agrees that this is the first notable NFT collection launched, which has helped spawn an entire industry of generative NFT projects.
Buying one now is a serious investment. But as a blue-chip NFT, it’s likely your investment will retain its value over the long term, and possibly be worth much more in the coming years.
While we don’t give investing advice, we do provide news and updates for important projects and companies in the NFT space. Check out some of our other recent articles and crypto reviews here, to help you continue your research and figure out which projects are worthy of investment.
