CryptoPunks is one of the first famous NFT projects, which have collectible pieces of crypto art, backed by NFTs. These NFTs are on the Ethereum blockchain. There are 8-Bit-style, 10000 small punks with unique features. This crypto has attracted many crypto artists. For digital collectibles, it has also inspired the development of the ERC-721 token standard. When some punks earned millions of dollars, the popularity of some CryptoPunks has increased by 2021.
What is CryptoPunks NFT?
CryptoPunks are 24×24 pixel images, denoted as art. These images are mostly punky-looking females and males, with the rare types mixed within.
Some of them are even Aliens, Apes, and Zombies. The most fascinating fact is that each punk has unique features, which is the reason for its high valuation in the market. It is a new and innovative form of asset tokenization.
Investors can check their website for traits or characteristics of every single punk and its price at that moment. Another trait about these CryptoPunks is that there are only 10,000 and developers are not making more or controlling punk’s circulation.
Before becoming famous, the company gave the punks for free. So, any investor with an Ethereum wallet can get the punks.
Background behind CryptoPunks
In 2017, CryptoPunks were released as the first non-fungible token (NFT). With nothing serious in mind, Matt Hall and John Watkinson from Larva Labs have started this project as an experiment.
This project has developed completely differently than planned. The inspiration behind this project is the novel Neuromancer, and the movie Blade Runner. They developed this project as a fun for entertainment purpose. In reality, ERC-721 inspired the punks that are close to the ERC-20 token.
What does Dev Punk mean?
When the company offered the 10000 punks, the blockchain developers claimed the first 1000 punks. They offered the Remaining 9000 punks to random people. The developers can buy or sell these CryptoPunks. Every CryptoPunk between 1-1000 is termed as Dev Punk.
Types of CryptoPunks NFT
There are 5 primary types of CryptoPunks NFT, namely female, male, zombie, ape, and alien. Various attributes or accessories characterize these types of punks. These punks have value based on their type, irrespective of their accessories. As there are 6039 punks, they are not rare as compared with other types of punks.
Whereas, alien punks are really rare, as there are only 9 punks, out of which they sold punk 3100 at a price of $10.67M. In the similar manner, there are only 88 zombie punks and 24 ape punks. More so, 3840 punks. This scenario has resulted in a rise in the value of female punks with rare accessories.
Trading CryptoPunks
Investors can trade the punks at two places, namely Larva Labs and OpenSea. If investors want to buy or sell the punks on OpenSea, they need to wrap these punks, as OpenSea can’t process the ERC-20, and works with ERC-721 tokens. Wrapped punks are also available in other NFT marketplaces. Due to low maintenance, investors may end in purchasing a fake punk.
Let us see what Wrapping is?
Wrapping process involves specific wallet and contracts support beneficial to wrap the punks. The first step is that the investor needs to send the punk to a wrapped contract, which will be stored in an escrow. Investors will get ERC721 token, specifying the CryptoPunk. They can use this token in buying or selling the punks. Investors can unwrap the token conveniently and can get the punk back stored in escrow. This method offers many decentralized finance applications to use these punks and increases the liquidity of the token.
Now, we will see step by step how to buy CryptoPunk.
First, you need to buy Ether necessary for buying a punk. A cryptocurrency exchange can convert the cash into Ether and store it in the wallet. It is advisable to buy Ether from the big and trusted crypto exchanges.
Industry experts regard CryptoPunks as a revolutionary addition to the NFT spectrum. As this project will grow, these punks would also give returns for the long term. Investors are giving preference to these alternative forms of collectibles based on the blockchain-technology, transforming it into an industry. If you have further queries about CryptoPunks, team Blockchain Shiksha would love to solve your queries.
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