Chapter 1: Understanding CryptoPunks

If you're encountering this pixel art for the first time and questioning the rationale behind such a purchase, let me clarify the situation. In the realm of NFTs, CryptoPunks are regarded as iconic.

This collection is credited with igniting the NFT frenzy of 2021, alongside other early initiatives like the Bored Ape Yacht Club. The project, inspired by London's punk scene, was launched by a duo in 2017.

With a total of 10,000 unique CryptoPunks, no two characters are the same: 6,039 are male while 3,840 are female. The creators utilized algorithmic methods to generate the artwork, ensuring each NFT's individuality.

When the collection was released, they were available for free to anyone with an Ethereum wallet. Certain traits and character types are rarer than others, and compared to other projects, their characteristics are relatively straightforward. Most NFTs in this collection depict humans, with three exceptionally rare categories:

• Zombie Punks (88 in total)
• Ape Punks (24 in total)
• Alien Punks (9 in total)

Additionally, there are 87 unique attributes. The recent sale involved an Ape Punk, and only 24 Apes exist among the 10,000 NFTs. This particular Ape Punk features a hoodie, one of the most sought-after traits among the 87 attributes.

I previously authored an article on the psychology behind collecting — "Uncomfortable Truths NFT Collectors Don’t Want To Hear."

According to Etherscan, the wallet that acquired the CryptoPunk had been inactive for five years. There is some lighthearted speculation within the CryptoPunks community regarding whether the buyer was aware of Ethereum’s current value compared to five years ago. You can check the wallet details on Etherscan.

Despite the seller realizing a substantial profit after acquiring the NFT for $71,403, they previously declined several offers, including one for $17.06 million, which was eventually retracted after four months of no response.

Ultimately, the seller, known as Seedphrase, accepted a sale price of $4.4 million, which is a significant drop of $12.6 million from just two months prior. Here’s the accepted offer:

Seedphrase, who is also a part-time DJ, possesses 20 other CryptoPunks, including the rarest one in the collection, which is ranked number one. You can view his wallet HERE.

One of Seedphrase’s notable CryptoPunks, dubbed Buck Tooth, was listed for a staggering $200 million on Larva Labs’ platform. This NFT is often referred to as the "Mona Lisa of NFTs" and remains in his collection.

For many, these figures may seem absurd. However, enthusiasts believe that NFTs represent technology capable of revolutionizing Cryptocurrency and that they will play a significant role in the future of commerce. Businesses will adopt NFT projects as routinely as they do social media pages.

As we transition into a more digitally immersive landscape, the smart contract potential of NFTs will continue to be leveraged. CryptoPunks were at the forefront of the NFT movement, and high-end collectors view these “fine art NFTs” as artifacts of what could become a digital renaissance.

If this concept still seems perplexing but you’re eager to learn about NFTs, I’ve written a detailed guide titled "Here’s How You Explain NFTs To Your Grandmother." For further insights on Web3, consider becoming a member. Your subscription directly supports writers like me, and I'll earn a small commission if you use my link CLICK HERE.

This article serves as informational content and should not be considered as financial, tax, or legal advice. Please consult with a financial professional before making significant financial decisions.