Why would these seemingly simple images sell for $10s of thousands of dollars?
So in this vid/article I’ll try highlight what makes CP special. (I own 0 at this point).
What are CryptoPunks?
Cryptopunks are these 24×24 pixel randomly generated images of ‘punks’. Only 10,000 were released and none will be added.
“The CryptoPunks are 24×24 pixel art images, generated algorithmically. Most are punky-looking guys and girls, but there are a few rarer types mixed in: Apes, Zombies and even the odd Alien.’
Each Punk has different Attributes algorithmically generated and the combination of these is what makes their valuations different.
The reason why their special is because they were the FIRST NFTs built on Ethereum.
They figured the whole thing out.
In fact, the ERC-721 standard which is the token most NFT’s are today, was inspired by CryptoPunks.
The first page of the NFT history books belongs to them.
They were circulated much differently to ‘Pre-sales’ that you see today in the NFT space. You could claim them for free, (which people did in droves once they were featured in mashable), which gave rise to a community interested in NFT’s on the ETH Blockchain.
Once they were all claimed and the only way to buy them were on the secondary market, that’s when their value as collector items increased.
Why the $10-$20,000 USD sales?
Scarcity plays a big role in valuation.
let’s look at this Punk that sold for 85 ETH.
There’s 7 attributes, (Accessories) on this punk.
Some Punks have just 3, some have 0.
Guess how many there are in the 10,000 collection with 7 Attributes?
And that’s this one that just sold.
You can also drill into certain Attributes like Zombies,
There’s only 88 of these. Out of 10,000!
And the info on the last 24 Most recent sales shows appreciation of value. From 1 ETH to 60 ETH. Crazy.
There are many attributes but it seems what drives value is how rare the attribute combinations are on your CryptoPunk.
Other rare attributes include Beanies, Apes, etc.
Recently we’ve seen these top the charts.
There’s been some collectors buy premium punks a ton of others.
Will They Continue to go up?
NFT’s are a HIGH RISK Investment. We’re still figuring out how all this works and considering we’re connected to ETH and BTC value, the risk on a fiat return is almost impossible to aim for.
All I know is the first pre-ERC721 Standard NFT that is topping the Volume chart 2-3 years later with NO Presale and given out for free says a lot.
A great podcast to listen to, to get a better understanding on the project and story is this one by nonfungerbils.