What's the history of CryptoPunks ?

CryptoPunks started out as an experimental project on the Ethereum blockchain and gradually became a full-fledged phenomenon in the crypto industry.

In 2017, Matt Hall and John Watkinson, founders of the software company Larva Labs, created software that generated 10 000, 24 × 24 pixels characters randomly using an algorithm. They even say that they didn't originally want to create an art collection, but a prototype for games and smartphone applications.

CryptoPunk, inspired by the London punk scene, they wanted their product to reflect the non-conformist spirit of the Web 3.0 movement and unknowingly created a new art movement. The London Punk movement has shaken up the entertainment industry. Its followers' clothing, appearance and accessories strongly inspired the creators of CryptoPunk.

The Craziest ? The collection was available on the Ethereum blockchain and could be claimed for FREE by anyone who owned an Ethereum-compatible wallet ! However, at the beginning and despite the fact that it was completely free, there was very little interest. Nobody wants to pay the Gas Fees to get their free CryptoPunk. We had to wait for an article published in Mashable to see the first acquisitions take place. When the characters were claimed, they were put up for sale on a network-integrated marketplace, allowing people to buy, bid or even sell NFTs (marketplace) !

Something never seen before.

When the crypto market exploded (2020-2021), DeFi and NFTs followed suit. Many celebrities, influencers, venture capitalists, angel investors, thought leaders, poker stars and business leaders joined the movement, which contributed significantly to the price increase.

What is Larva Labs ?

Larva Labs is the company founded in 2005 by Matt Hall and John Watkinson and based in New York. They make applications for iOS and Android devices, and have as customers some of the best companies in the world, like Google and Microsoft (see all the projects), in the space of NFTs we can mention 3 projects they have created :

CryptoPunks
Meebits : 20,000 unique 3D voxel characters, created by a custom generative algorithm, then registered on the Ethereum blockchain.
Autoglyphs : Autoglyphs are the first “on-chain” generative art on the Ethereum blockchain. They are a completely self-contained mechanism for the creation and ownership of an artwork.

What is the advantage of owning a CryptoPunks ?

They have little value or utility outside the collectibles market. However, they have laid the foundation for the NFT market and transformed the way people hold and transfer digital assets. In addition, they have allowed artists to unleash their creativity and monetize it.

If you decide to purchase an NFT from this collection you are buying :

A rare asset
An asset with a history
A popularity
A hedonic value

The major problem of CryptoPunks Intellectual property (IP)

A CC0 (creative commons – no rights reserves) is a form of copyright that enables the creator to allow their NFTs to be owned by others. CC0 means that anyone can use the NFT for commercial purposes in numerous ways without the need to give attribution to the original artist, team, or creator. CC0 NFTs can be seen as open-source IPs.

CryptoPunks are not free of rights because the creators have decided to keep the rights related to the works and are the only ones who can use them in another way or reproduce them.

Holders are complaining about Larva Labs' lack of communication on this topic and its community involvement.

BUT Bored Ape Yacht Club’s Yuga Labs Acquires CryptoPunks (and Meebits) IP From Larva Labs, the March 12, 2022, and they also picked up 423 CryptoPunks and 1,711 Meebits in the deal for an undisclosed amount.

Special details :

There are 8 characters called "Genesis Punks" who have no attributes : CryptoPunk 281 / CryptoPunk 510 / CryptoPunk 641 / CryptoPunk 741 / CryptoPunk 1050 / CryptoPunk 2204 / CryptoPunk 3307 / CryptoPunk 6487
1 single CryptoPunks has 7 attributes : CryptoPunk 8348
There are 9 Alien Punks
There are 24 Ape Punks
The sale of CryptoPunks was limited to the official website of the project until the birth of Wrapped CryptoPunks. In concrete terms, wrapping transforms non-compliant NFTs into ERC-721 tokens. This aims to make CryptoPunks compatible with popular marketplaces like OpenSea.
1,000 NFTs were kept by the creators : " Just in case this becomes a phenomenon " - Mr. Hall.
A lot of 9 Cryptopunks was auctioned by Larva Labs owners on May 11, 2021: 2, 532, 58, 30, 635, 602, 768, 603 and 757. The selling price : $16,962,500.