The Market Value and high cost of Crypto Punk NFTs
Crypto Punk NFTs have recently seen increasing interest from both retail and whale investors. The high cost of acquiring or owning these NFTs speaks volumes of the value placed on them by NFT traders and investors alike.
Most often they are auctioned and very rich investors participate in the purchase of these NFTs but recently there had been moves for fractionalization, which allows for the production of fractions of the whole NFT. Simply put, by fractionalization, anyone can own a fraction of a digital asset (Crypto Punk’s NFTs) at a minimal cost and make profits from the sale, and this guarantees the steady supply of highly needed liquidity for the NFT markets and other Cryptocurrency transactions.
This article seeks to explain what NFTs are and why Crypto Punk’s NFTs are of high value among crypto traders and investors.
What are NFTs?
Non-Fungible Tokens (NFTs) are unique digital assets that are mostly created and issued on the Ethereum blockchain using ERC standards, such as ERC-20, ERC-721, or most recently ERC- 1155. Also, Binance Smart Chain has its unique standards for the creation and issuance of NFTs similar to Ethereum, that is BSC — 721, and BSC — 1155, and offers a better alternative to Ethereum because of the lower minting/transaction fee.
Other blockchains are creating and issuing NFTs. Examples include Solana, Avalanche, etc. After minting, these items are turned into digital assets (NFTs) and are unique, uninterchangeable, distinguishable, and represent true ownership of an asset on the blockchain.
NFTs are termed non-fungible and are entirely different from cryptocurrencies, such as Bitcoin or BNB because they are unique, distinct, non-interchangeable, limited in quantity, and offer proof of authenticity and ownership. They guarantee the security of a digital asset and also indicate true ownership of a real-world asset like Jpegs(pictures), fine art, videos, music, gaming, certificates, etc.
CryptoPunks are a set of 10,000 digital collectible characters living on the Ethereum blockchain. As one of the first NFT projects, CryptoPunks forged the way for subsequent NFT projects, like Bored Apes Yacht Club and Art Blocks.
CryptoPunk’s NFTs were created by two software developers, Mark Hall and John Watkinson on June 23, 2017, and are among the leading NFTs in the NFT marketplace because of the high market value of these NFTs and their high costs.
In a recent publication by Binance Academy, titled, “The 10 Most Expensive NFTs Ever sold.” The article carefully outlined the most expensive NFTs and CryptoPunk’s NFTs dominated with six unique NFTs.
The first Crypto Punk’s NFT on the list was sold at $23.7 million and the last for $7.57 million.
Moreover, CryptoPunk 6965, a fedora-wearing ape Punk, sold for 800 ether ($1.5 million), and on 11 March 2021, Crypto Punk 7804, a pipe-smoking ‘wise alien,’ was sold for the equivalent of $7.5 million — the highest amount ever paid for a Punk at the time.
These NFTs sold for huge sums which is the reason for the attention that it is getting at the moment, but what distinguishes them from other NFTs in the market? What characteristic features do they possess that other projects don’t have?
Characteristics and Unique Features of Crypto Punk’s NFTs
First, The CryptoPunks are a collection of 24x24, 8-bit-style pixel art images of misfits and eccentrics, with ostensible personalities and a unique combination of outstanding, randomly generated features, some wear sunglasses, caps, hot lipstick, have mutton chops, hat, hoodies, etc.
“There are also eight Punks with no distinctive features at all — occasionally referred to as Genesis Punks — and only one with seven attributes: for example, CryptoPunk 8348 a big bearded, bucktoothed, cigarette-smoking Punk with an earring and a mole, wearing classic shades and a top hat.”
Each pixelated CryptoPunk has a unique set of attributes differentiating it from others. All the attributes were randomly assigned by a generator.
Furthermore, buying the works of Hall and Watkinson can be compared to owning a work of physical art that’s permanently in a public museum. It also inspired the now widely accepted ERC-721 standard for NFTs, laying the groundwork for today’s NFT market.
Some of these collections are aliens showcasing human attributes, for example, one is seen smoking a pipe, popularly referred to as a ‘wise alien.’
The creators regard each work as individual pieces of generative art and allude that the entire project might be thought of as a larger conceptual piece.
Above all, crypto punks art is inspired by a community of collectors and connoisseurs creating digital arts that runs on the Ethereum blockchain which are has unique features and rare.
Reasons for Crypto Punk’s Popularity
CrytpoPunk is among the earliest NFTs in the crypto world and had attracted strong attention with their collections, making indelible impression as a pioneer in the NFT world.
The respective Crypto Punk’s NFTs have a strong use case and appeal to a wide section of both NFTs and crypto enthusiasts who see in them more than just a piece of art or digital work. Some are rarer than others and offer more distinct features.
Also, its unique creation different from what was obtainable from other NFT projects is partly why it is valued and bought at an exorbitant price (the value of NFTs is determined by market supply and demand and also based on a shared belief).
With high creativity and uniqueness, CryptoPunk NFTs continue to dominate the NFT market and offer traders and investors high rarity and features for each NFT purchased.