In 2017 two software developers launched CryptoPunks – 10,000 pixelated faces in tiny squares and are often credited as being one of the first NFTs (non-fungible token) on the Ethereum blockchain.
But what are they and why are they so valuable?
What are CryptoPunks?
CryptoPunks are pieces of art in the form of NFTs on the Ethereum blockchain. There are 10,000 different small, 8-bit-style punks. CryptoPunks was one of the first NFTS projects and first became popular in 2021 after some CryptoPunks started selling for millions of dollars.
They are a type of cryptocurrency but quite different from Bitcoin. All 10,000 of the punks are unique NFTs on the Ethereum blockchain. 3840 are female, 6039 are male. There are also apes, aliens, and zombies too. Each one of the 10,000 is entirely unique.
Who created CryptoPunks?
CryptoPunks was started by New York-based Larva Labs founders Matt Hall and John Watkinson.
It began in 2017 as an experiment into the value of NFTs and art.
How can I buy CryptoPunks?
They were initially available and distributed for free. You just had to pay the Ethereum transaction fee.
But the popularity of these artworks has rapidly increased since then, alongside the NFT market in general.
The most expensive is CryptoPunk #3100 owned by address 0x7b8961. It was bought for 4200ETH, roughly $7.58 million at the time of purchase on March, 11, 2021. The punk is currently for sale by owner for 35KETH, roughly $90M.
The second most expensive CryptoPunk is #7804, which was sold for the same amount of Ethereum but roughly $7.57 million at the time of purchase. The difference was due to the rising Ethereum prices.
In terms of NFTs, these two are the second and third most expensive non-fungible tokens ever sold to date.
Beeple’s EVERYDAYS: THE FIRST 5000 DAYS sold for $69,346,250.
How do CryptoPunks work?
CryptoPunks are stored on Ethereum which allows for computer code to be used on the blockchain and can be stored forever. Code normally is run on a server somewhere and you need to trust the person running that server.
CrypoPunks have written code which lives on the blockchain that anyone can use to buy and sell Punks with anyone else in the world. CryptoPunks founders no longer have any control over the code running.
After they released it onto the blockchain it became permanently embedded there and can no longer be modified by anyone.
This allows a user verify that there are only 10,000 punks, check that they can’t be stolen and make sure that everything you’ve been told about the code is true.
How do I buy CryptoPunks?
1) Download and install a Chrome browser plugin called MetaMask
To use CryptoPunks which is on the Ethereum blockchain, you need an Ethereum wallet address.
– One Ethereum wallet is the MetaMask wallet extension.
-To install it click “Add to Chrome” to install MetaMask as a Google Chrome extension.
-Click “Add Extension” to confirm and MetaMask will be added.
-Click on the MetaMask logo and create a new vault.
-Make your password.
2) Buy some Ethereum
Cryptopunks are bought and sold in Ether (ETH), the cryptocurrency of the Ethereum Blockchain.
– You can buy ETH through a number of ways but the easiest is through Coinbase.
3) Connect your wallet to CryptoPunks
– Get on the Larva Labs CryptoPunks website, there will be a MetaMask pop-up.
– Click “Connect” and it will be done.
4) Buy your CryptoPunk
After connecting your wallet, you can now buy a CryptoPunk.
– Find the ‘for sale’ part on the website and click through to see all the CryptoPunks for sale.
– Select the one you want, click it, and you’ll be directed to its detail page.
– Click the ‘buy’ button.
– A MetaMask pop-up will appear for you to complete the transaction, and you need to pay both the price and Ethereum gas fee.
-Click ‘confirm’ and the CryptoPunk is yours.
What are the most expensive CryptoPunks?
- CryptoPunk #3100
CryptoPunk #3100 is currently the most valuable CryptoPunk with a current value of $11.1 million.
It was sold on March 11, 2021 for 4,200 Ether, which then had a value of $7.58 million.
This CryptoPunk is one of nine Alien punks and features a headband, which only 405 other punks have.
Prior to the sale in March, CryptoPunk #3100 had only been sold one other time in 2017 for 8 Ether or $2,127 at the time.
2) CryptoPunk #7804
On the same day that CryptoPunk #3100 was sold, Dylan Field, CEO of software startup Figma, also sold CryptoPunk #7804 for 4,200 Ether valued at $7.57 million at the time.
Field bought the CryptoPunk in 2018 from its original owner for only 12 Ether ($14,988 at the time).
CryptoPunk #7804 now belongs to an anonymous investor known on Twitter as “Peruggia.”
3) CryptoPunk #6965
The Ape punk was sold on February 19, 2021 for 800 Ether – $1.54 million at the time.
This was a record sale for CryptoPunks before it was topped a month later.
Currently, CryptoPunk #6965 is one sale by its owner for 2,100 Ether – about $5.5 million.
So far, one offer was made for 2,100 Ether back on March 14th when it was worth $3.9 million but the owner didn’t accept.
4) CryptoPunk #2140
CryptoPunk #2140 hadn’t been sold since it was claimed for free in 2017 until late February 2021.
The Ape punk with knitted cap and small shades was sold to Twitter user Pranksy for 400 Ether – 731,604 at the time.
One week later, Pranksy sold CryptoPunk #2140 for 750 Ether, about $1.18 million.
5) CryptoPunk #3011
CryptoPunk #3011 sold for 667 Ether on April 27, roughly $1.76 million at the time.
CryptoPunk #3011 is a male punk. – the most common type of CryptoPunk – but does have a number of rare accessories, which explains its high value.
Only 11 CryptoPunks have six attributes. This punk has hair, a frown, an earring, a beard, shades, and is smoking a pipe.
CryptoPunk #3011 has been sold several times since 2017.
It was actually sold on March 12, 2021 for 400 Ether – $726,460 at the time.
