What are CryptoPunks?
CryptoPunks are the first non-fungible token (NFT) collection to achieve mainstream popularity: 10,000 NFTs issued on the Ethereum blockchain in 2017.
The frenzy around CryptoPunks helped drive the wider rise of NFTs.
Each work is pixel art, a portrait of a human, ape, zombie or alien.
As of early May 2022, a single NFT from the collection cost at least 61 ETH (about $173,000), and cumulative trading volume in CryptoPunks reached $1.96bn.
Who created CryptoPunks?
The collection was created by Larva Labs, founded by Matthew Hall and John Watkins. The authors were initially working on a program to auto-generate avatars. In the summer of 2017 they spontaneously decided to use it to create digital objects on the blockchain.
The aesthetic of the 1970s British punk movement and cyberpunk works such as the film “Blade Runner” and the novel “Neuromancer” inspired CryptoPunks.
They were not the first NFTs, but they became a cultural phenomenon and truly popular. After launch, the company opened a marketplace on its website for token trading and added analytical tools for the collection.
How were CryptoPunks created?
When the collection was created, the ERC-721 token standard—now common for digital items—did not yet exist. The developers therefore modified the ERC-20 standard to issue non-identical tokens.
Initially, the developers did not plan to store images on-chain because graphics take up a lot of space. Larva Labs posted on its site a composite image containing all avatars.
The authenticity of an NFT can be verified by processing the image and checking that the resulting data match the hash stored in the NFT’s smart contract.
Each portrait has a serial number corresponding to its position on the 100-by-100 master image. For example, avatar #7610 is the tenth image in the 76th row.
At mint the developers effectively gave away 9,000 of the 10,000 tokens—users only had to pay the Ethereum network fee to cover issuance costs.
What distinguishes CryptoPunks images?
All portraits are divided into several types. The first includes images of both male and female humans—the largest group, numbering several thousand tokens. There are far fewer portraits of zombies, apes and aliens; together they total roughly a hundred images.
To generate the portraits, the developers used dozens of traits, making the characters unique. Almost every one has a distinct combination of attributes. There are 87 properties and accessories in all: hairstyles, beards, headgear, glasses, pipes and other features.
A character can have no more than seven attributes. Only one portrait, number 8348, has the maximum. Most images have two or three properties. Avatars with no unique attributes are called Genesis Punks.
The CryptoPunks catalogue, with detailed information on each image and its attributes, and a list of transactions for the associated tokens, is published on the Larva Labs website.
Why are CryptoPunks NFTs so expensive?
The most expensive “cryptopunk” sold in February 2022: avatar #5822 was bought for 8,000 ETH (more than $23m at the time). The buyer was Deepak Thapliyal, head of Chain.
In early May 2022, the cheapest token from the CryptoPunks collection cost over $170,000. Several main factors underpin these high valuations.
First, historical significance: the collection became a genuine cultural phenomenon at the dawn of digital art, and its items are now “classics”.
Second, prestige: each NFT is a recognised, unique art object, giving wealthy buyers a way to stand out.
In addition, tokens confer certain privileges—notably invitations to private groups and chats. Holders of CryptoPunks also received an airdrop of tokens from Meebits, another Larva Labs collection.
Recognition by leading auction houses contributes to value. In May 2021, nine tokens from the collection were sold at Christie’s.
The project has also attracted large investors: in August 2021 Visa bought one avatar. Celebrity owners include the musician Jay-Z and the tennis player Serena Williams.
What drives the price of an individual CryptoPunks NFT?
The value of each avatar is determined by its type and attributes.
The rarest—and therefore most expensive—are aliens. On average, such NFTs sell for more than 100 times the price of a male human avatar. Apes and zombies are also highly valued because there are few of them.
Prices also depend on the number of attributes. Avatars with no distinguishing features at all, or with the maximum (six or seven), tend to be the most valuable. “Accessories” also influence price, as some items are rare in their own right.
Where can you buy “cryptopunks”?
Items from the CryptoPunks collection trade on the Larva Labs marketplace. To transact you need a Web3 wallet that supports Ethereum, such as MetaMask. The site also provides analytics on each character and all related transactions.
Secondary trading of “wrapped” ERC-721 versions of CryptoPunks also takes place on the OpenSea platform.
Can you download CryptoPunks portraits?
Any CryptoPunks image can be downloaded to your device for free, and you do not need the “Save as…” option—just query a dedicated smart contract on Etherscan. Users can pull an unprocessed set of pixels from the blockchain or an SVG image. These are “view” functions and do not require payment.
How is CryptoPunks evolving?
In August 2021, at the request of collectors seeking stronger preservation of NFTs, Larva Labs placed the CryptoPunks images on the Ethereum blockchain.
In spring 2021 Larva Labs released a new collection of 20,000 NFTs called Meebits. The images were also auto-generated with software and rendered in pixel art, but this time built from voxels (3D pixels). Meebits tokens are issued on Ethereum and follow the ERC-721 standard.
In March 2022, Yuga Labs, creator of another popular digital-collectibles series—Bored Ape Yacht Club—acquired the rights to CryptoPunks and Meebits. As part of the deal it received 423 “cryptopunks”.
Art projects based on the legendary collection continue to appear. For example, FlamingoDAO created three-dimensional models of CryptoPunks characters and plans to use them in metaverses.