What are CryptoPunks?

“CryptoPunks” are collectible digital art pieces presented as NFTs (Non-Fungible Tokens) on the Ethereum blockchain. The entire series consists of 10,000 unique 8-bit pixel art characters, each with its own distinct attributes. As one of the first notable NFT projects, CryptoPunks have inspired many digital artists and even contributed to the development of the ERC-721 token standard for digital collectibles. The project gained significant popularity in 2021 when several CryptoPunks sold for millions of dollars, making them some of the most expensive NFTs.

Introduction

At first glance, these small square pixel faces may not seem special. Some characters are smoking pipes, some wear hats, and there are even aliens. However, in the NFT world, appearances can be deceiving.

These quirky pixel characters hold significant value, capable of turning dreams of buying a modest apartment or a grand mansion into reality. With only 10,000 of these 8-bit CryptoPunks in existence, they have become highly sought-after collectibles. They don’t engage in battles or perform any tasks; they simply exist as silent pranksters. As one of the pioneering NFT projects, CryptoPunks have left a lasting impact on the digital art world.

Who Created CryptoPunks?

“CryptoPunks” were created by Larva Labs, a New York-based studio co-founded by Matt Hall and John Watkinson. The project began in 2017 as a bold experiment to highlight the value of NFTs and digital art. It ultimately played a significant role in promoting digital art, which has now gained widespread recognition.

The 10,000 unique punk characters, including 3,840 male and 6,039 female punks, as well as a few apes, aliens, and zombies, are all NFTs on the Ethereum blockchain. The creators used a combination of different attributes to generate each unique punk character.

Initial Distribution and Market Impact

Initially, these punk characters were given away for free, with users only needing to pay the Ethereum transaction fee to claim one. Since then, the artworks and the entire NFT market have skyrocketed in popularity, becoming hot commodities. Notably, Christie’s auction house has sold collections of CryptoPunks for millions of dollars.

In March 2021, an alien punk with pale skin and a headband sold for 4,200 Ethereum (approximately $7.58 million), setting a record for the highest CryptoPunk sale. Another, CryptoPunk #7804, sold for a similar amount (about $7.57 million at the time). The price difference was due to the fluctuation in Ethereum’s value.

How Do CryptoPunks Work?

When the project was launched, the ERC-721 token standard did not exist. Larva Labs used the ERC-20 standard with modifications to create these non-fungible items, which later inspired the development of ERC-721.

Each CryptoPunk’s authenticity can be verified by hashing its reference image and comparing it with the specific image hash in the token contract. Due to storage limitations on the blockchain, Larva Labs created a composite image containing all 10,000 punks and recorded its hash in the CryptoPunks token contract.

Where Can I Buy CryptoPunks?

Larva Labs has an exclusive marketplace on the CryptoPunks website where users can bid, buy, and sell CryptoPunks. By installing and connecting MetaMask, users can interact with this marketplace.

CryptoPunks are also available on OpenSea, a leading NFT marketplace on the Ethereum blockchain. On OpenSea, these pixel characters are slightly different; they are wrapped into ERC-721 tokens for trading on the NFT market. These wrapped ERC-721 CryptoPunks can be easily converted back to their original ERC-20 format through the Wrapped PUNKS interface, using a MetaMask wallet.

Summary

In the rapidly evolving NFT market, “CryptoPunks” remain iconic as pioneers showcasing pure artistic value, leaving a lasting mark on the blockchain. Unlike CryptoKitties, which incorporate gameplay elements, CryptoPunks are simple images. Their influence continues as new projects inspired by “CryptoPunks” regularly emerge, reflecting their enduring popularity in the market.

From OpenMark