CryptoPunks NFTs: Still Relevant? 🤷
The most celebrated NFTs are in the news for all wrong reasons - a 1.5M heist (Punk #2386), $56M sale publicity stunt (Punk #1563) and the most expensive NFT (Punk #5822) sold at a huge discount.
Hello, y'all. The music quiz game that you want to play. Over 1.7 million plays and music fandom to flex. Who are you playing with then 👇
NFT’s are living through the diminished shadow of their super stardom.
Few years ago they were a vogue, and now scattered remains of the big party.
Read: NFTs Story - From Boom to Bust 🚨
CryptoPunks have been most celebrated and also shrouded in controversies.
Biggest CryptoPunks sales
When the most expensive Punk was sold at a discount in August 2024.
We knew it was end of an era indeed.
Created by Larva Labs in 2017. Pixelated 24x24 images with only 10,000 unique characters.
Each CryptoPunk is unique, with randomly generated attributes like hairstyles, cool accessories (headbands - our favourite), and skin tones.
Read: What Are CryptoPunks?
CryptoPunks, the OGs of the NFT universe are activated again? Maybe not in a desirable way.
Someone is going shotgun, someone is doing flash loan scam.
Back in the headlines. That counts.
CryptoPunk $1.5M heist - The steal of the century
Punk #2386 is a rare ape-themed CryptoPunk with a headband and small shades. A highly sought-after trait among CryptoPunk collectors.
Someone bought this super-rare punk for just 10 ETH. A mere $23,000 for something that is worth around $1.5 million.
Punk #2386 was one of only 24 in the 10,000-piece collection that depicted an ape.
NFT's owner fractionalized Punk #2386 through a now defunct platform called Niftex in 2020.
According to the pseudonymous developer 0xQuit, the NFT ownership was split into 10,000 ERC-20 tokens, allowing 257 investors to hold shares in the asset.
The NFT itself was locked on the Ethereum blockchain.
After Niftex ceased operations, trading these fractional shares became difficult.
A savvy buyer recognised that despite Niftex's shutdown, the smart contract governing Punk #2386 was still functional. They took advantage of the contract's built-in buyout feature to acquire the entire NFT for a fraction of its worth.
The buyer initiated a "shotgun" offer on August 28, proposing a price of 0.001 ETH per share, or 10 ETH for all 10,000 shares.
With almost no one aware of the bid, the 14-day countdown began. If no one countered the offer within a specified period, the proposer could purchase the asset.
Just like that the forgotten Punk was snagged for a mere $23,000. Punk’d.
One of the fractional shareholders, pseudonymous NFT investor Gmoney, attempted to counter the offer but failed due to a miscalculation. Despite seeking assistance from trusted blockchain experts, his efforts were ultimately unsuccessful.
“I reached out to the two blockchain chads I know and trust the most for help with it … I thought we had blocked it.”
The identity of the new owner of Punk #2386 remains unknown, and the NFT is currently not listed for sale. However, it has already received a bid of 600 ETH from an interested buyer.
If the sale goes through at this price, the new owner would see a 60x return on their investment.
The whole thing has sparked a debate: Was it a clever heist, or just a lucky break?
We agree with Gmoney.
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It provides an interactive experience through quizzes and exploration tools. For artists it’s a powerful tool for artists to connect with their fans.
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The platform offers a direct line to fans, fostering a sense of connection that goes beyond mere listening.
CryptoPunk sold for $56M: A publicity stunt
On October 3, reports on social media suggested that someone bought Punk 1563 for 24,000 ETH, worth $56.2 million at current prices — which is also shown on OpenSea data.
The $56.2 million sale is more than double the highest amount ever paid for a CryptoPunk during the end of the NFT mania in February 2022.
Turns out, It’s not all true.
CryptoPunk #1563 did indeed change wallets, but it wasn't exactly a regular sale.
The buyer - seller flash loan game = no one profited.
A failed game so far.
First off, this Punk is a "floor Punk," meaning it doesn't have any special features and usually sells for around the starting price.
It was last sold for about $69,000 in September 2024.
So, a sudden jump to $56.3 million - 81,000% price increase?
Turns out, the buyer used a "flash loan." It's basically borrowing a massive amount of crypto (in this case, 24,000 ETH) with the agreement to pay it back right away.
The "buyer" used the loan to buy the Punk, then used the Punk itself to pay back the loan.
No money actually changed hands, just a lot of internet smoke and mirrors.
So, why bother?
This kind of thing has happened before, and it's usually a publicity stunt.
In this case, it seems the whole thing might be tied to a new meme coin with a ... questionable name - “Kamala Harris Punk.”
The sale appears to be a strategy to generate interest in the token's pre-sale. After a week-long pre-sale, the NFT will be sold to the highest bidder, potentially exceeding its current floor price of about $63,400.
The seller might be hoping this whole thing will drum up interest in their coin. But now that we know the intentions, do we care? Nah mission failed.
Most expensive CryptoPunk sold at massive discount
CryptoPunk #5822, once purchased for around $24 million, has changed hands in a rather quiet sale.
Deepak Thapliyal, a prominent figure in the NFT space, originally acquired CryptoPunk #5822 for 8,000 ETH, equivalent to approximately $23.2 million in 2022.
When Thapliyal recently announced its transfer to an unmarked wallet, he didn’t disclose the sale price, prompting whispers that he might have sold it at a loss.
With interest in NFTs cooling off, many fans are wondering if this was indeed a bad investment.
Given that the current floor price for CryptoPunks is around 29.45 ETH (approximately $76,000), some speculate that Thapliyal might have sold it for about 5,000 ETH, which would mean a 43.6% loss.
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Are CryptoPunks still loved?
They are still top of the NFT charts by a good margin.
NFTs and luxury brands always tried to find a connection.
They have successfully integrated into the luxury market, with notable collaborations including Tiffany & Co.
On September 26, a hoodie collection inspired by CryptoPunks was launched by luxury brand mmERCH in collaboration with Swarovski.
The collection features 322 unique hoodies, each paired with NFTs, and was auctioned at Christie’s.
The hoodies are algorithmically designed and include NFC chips.
The team behind this project is who's who of crypto cool kids.
We've got Colby Mugrabi from mmERCH, Daniel Maegaard (aka Seedphrase), and the AI art wizard Claire Silver.
Nicole Sales Giles, the head of Christie’s digital art team
“It's respected … Even some of [crypto’s] more historical projects haven't really had the brand continuity or longevity that Punks has.”
Daniel Maegaard, aka Seedphrase
“People choose Punks for the right reasons … That is a more genuine and organic message than what other collections have tried to imitate.”
While other NFT projects have faded into obscurity, CryptoPunks are still holding strong.
CryptoPunks are referred to as the "quiet luxury brand" of the Web3 space, maintaining a strong reputation compared to other NFT collections.
Week That Was 📆
Saturday: NFTs Story - From Boom to Bust 🚨
Thursday: Who's Betting on Solana? 🎲
Wednesday: Will Bitcoin Act as a Safe Haven? 🤔
Tuesday: It's Uptober baby 🍁
Monday: Crypto’s Best September Yet? 🫵
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Deepak Thapliyal's silent exit from Punk #5822 signals a significant moment in the NFT world. With high-profile figures seemingly losing confidence, it’s worth questioning how much of NFT value was driven by hype versus real belief in the tech and culture behind these assets.
It's interesting how CryptoPunks are compared to a 'quiet luxury brand.' Despite the controversies, they still have a lasting presence, and collaborations with luxury brands like Tiffany & Co. help keep them relevant. It shows that NFTs, when positioned well, can bridge the gap between digital culture and the luxury market.