What Is Cryptopunks? Why is it so expensive in 2022 ?

What Is Cryptopunks? Why Is It So Expensive In 2022 - CoveMarkets

According to the Decrypt website, in the first six months of 2021, the transaction volume for crypto assets in the form of non-fungible tokens (NFTs) increased to 2.5 billion USD. Traders will discover more about one of the long-running NFT projects today. It is regarded as the most expensive and well-known product available. CoveMarkets, of course, referring to CryptoPunk. So, What is CryptoPunks?

What is CryptoPunks?

What is CryptoPunk

One of the earliest NFT collections on the Ethereum blockchain was called CryptoPunks. Consider the 10,000 avatars as a group of computer-generated characters. Each CryptoPunk is unique.

Therefore no two personalities are precisely the same, which helped to inspire the current trend in CryptoArt.

When did Cryptopunks Come Out?

In 2017, the group created 10,000 original characters and stored them on the Ethereum blockchain. A CryptoPunk was available for a free claim to anyone interested.

Before NFTs and DeFi took off, the cost of computing energy was much lower. Thus they would need to pay the gas fee to cover it.

Larva Labs preserved 1,000 portraits for personal use, but the others were immediately taken. Today, buying a CryptoPunk straight from its owner is the only way to get one.

Who is the creator of CryptoPunk?

The American Larva Labs studio created this NFT project. Matt Hall and John Watkinson, two software developers from Canada, formed Larva Labs.

The intriguing aspect is that this effort was motivated by Punk London, a cyberpunk subculture that included writers of the Neuromancer novel by William Gibson, Blade Runner, and Daft Punk.

Why is Cryptopunk so expensive?

Why is Cryptopunk so expensive

The fact that it is regarded as one of the first projects on the Ethereum network is one of the main elements boosting its popularity.

In other words, the project is the forerunner of NFT and has served as an example for numerous other works of art that share a similar aesthetic, like Bored Ape Yacht Club and Pudgy Penguins.

The collection’s endearing distinctiveness, such as Alien Avatar, which is the rarest and has grown to be the most expensive its NFT ever sold, is another factor that makes it worthwhile.

How much is CryptoPunk?

How much is CryptoPunk

  • The cost of CryptoPunk varies. The floor price for purchasing its NFTs on the secondary market is below 80 ETH, which is the lowest price for CryptoPunk.
  • Lava Labs revealed that CryptoPunk #1417, a piece of the art form, sold for 79.99 ETH. One of the lowest rates to buy a CryptoPunk was at 0.9 ETH in early 2020, when the price was substantially lower.
  • In the first week of 2020, numerous pricey its NFTs were sold. For instance, “CryptoPunk #8857” was offered 2,000 ETH on September 12th.
  • A unique piece with a clown nose called “CryptoPunk #5169” had also been auctioned for 205 ETH.
  • The case of CryptoPunk #9998 is another illustration to explain the price of CryptoPunk. According to a report from Bloomberg in October 2021, its NFT that can be seen below was purchased for 124,457.07 ETH.

What is The Most Expensive CryptoPunk NFT Ever Sold?

What is The Most Expensive CryptoPunk NFT Ever Sold

During an auction held by Sotheby’s, one of the shareholders from a sports company and a member of parliament named Shalom Mackenzie purchased the most expensive its NFT for 11.8 million USD.

The sale of a piece of artwork has surpassed the previous record, held by the alien CryptoPunk #7804, which was sold in March 2021 for a price of 7.7 million US dollars.

In addition to these two works of art, the credit card industry titan Visa has recently made a stunning acquisition by purchasing CryptoPunk for the sum of 150,000 US Dollars.

However, it wasn’t the end of it. For a total of 380,832 US dollars, CryptoPunk returned its sales to a Chinese investor who had paid the highest price.

Where do I buy CryptoPunks?

The best place to buy CryptoPunks is on the Ethereum blockchain. Several decentralized exchanges allow investors to trade CryptoPunks, including Uniswap, Kyber Network, and Bancor.

OpenSea is also the most prominent NFT marketplace that supports users to buy and sell, and NFT mints on Ethereum; it is also the NFT marketplace with the highest trading volume.

Read more: What are Difference of Pancake Swap vs Uniswap: Which Is Better 2022?

How to Buy CryptoPunk NFTs?

How to Buy CryptoPunk NFTs

  • Create a login for use with OpenSea. The most extensive marketplace for trading NFTs is known as the Open sea. On this platform, over 2 million NFTs have been registered and are ready to be traded as of March 2022.
  • After that, traders will need to link their wallet to their computer. Metamask is the most popular choice for a cryptocurrency wallet in OpenSea.
  • With the help of an extension for Google Chrome, you can easily communicate with the Metamask website and conduct cryptocurrency transactions.
  • If users want to ensure that their NFTs are kept secure, the Ethereum wallet is the most likely place for users to retain them.
  • After the initial setup, users can quickly purchase any piece of CryptoPunk art investors wish. The Ethereum blockchain now contains all 10,000 CryptoPunk arts that have been generated.
  • To get one of the CryptoPunks, investors must purchase from a seller with collections available.

OpenSea currently offers a large number of registered CryptoPunk available for purchase. The price range for a collection ranges from around 1 Ether to several dozen Ether.

Read more: Best Crypto Wallets For Storing Coins In 2022: Hot Wallets & Cold Wallets

How to Sell Cryptopunks

How to Sell Cryptopunks

If traders are looking to sell their Cryptopunk, the best place to start is on a dedicated cryptocurrency exchange.

  1. To sell their Cryptopunk on OpenSea, investors must create an account and verify their identity. Once traders’ve done that, they can list their Cryptopunk for sale.
  2. When listing their Cryptopunk for sale, investors’ll need to set a price and write a description. they can also choose to add pictures and videos to their listing.
  3. Once their listing is live, anyone interested in buying their Cryptopunk will be able to do so. When someone buys their Cryptopunk, users’ll receive the payment in cryptocurrency.

How to Make a CryptoPunk NFT?

How to Make a CryptoPunk NFT

Creating a its NFT will vary depending on their platform to create and mint their NFT. However, in general, creating a CryptoPunk NFT will involve the following steps:

  1. Choose a platform: Users can use various platforms to create their CryptoPunk NFT, each with its advantages and disadvantages. Some popular options include Ethereum, EOS, and Tron.
  2. Select a template: Once traders have chosen a platform, they will need to select a template for their CryptoPunk NFT. This will determine the basic appearance of their NFT, and they will typically have a wide range of options to choose from.
  3. Customize investors’ NFT: Once they have selected a template, they can customize their CryptoPunk NFT to make it unique. This may involve adding text, images, or even 3D models.
  4. Mint traders’ NFT: Once they are happy with their CryptoPunk NFT, they will need to mint it. This is the process of creating the actual NFT token, which will be stored on the blockchain.
  5. Market users’ NFT: Once their NFT has been minted, they will need to market it to sell it. There are various ways to do this, such as listing it on an exchange or marketplace or promoting it through social media.

5 of the Most Valuable CryptoPunks on the Market

CryptoPunks are being sold for astronomical amounts. These are the five CryptoPunks that are the most valuable according to Ethereum price at the time of purchase.

CRYPTOPUNK TYPE VALUE
CryptoPunk 5822 Alien $23.7 million
CryptoPunk 4156 Ape $10.26 million
CryptoPunk 5577 Ape $7.7 million
CryptoPunk 3100 Alien $7.58 million
CryptoPunk 7804 Alien $7.57 million

What does the future look like for CryptoPunks ?

What the future looks like for CryptoPunks

CryptoPunks profited from the explosion in the market for collectors’ goods in the COVID-19 pandemic, coupled with the increasing interest in blockchain and cryptocurrency projects. It was the perfect storm that sent prices up.

The final fee charged for CryptoPunks portraits is affected by demand and supply. If supply is fixed, the only issue that investors in NFT should be asking themselves is whether they believe that the market will continue to rise or when we’ve reached the peak.

There’s a chance that CryptoPunks could go from collectors’ objects to mainstream art because many of them have been auctioned at Christie’s or Sotheby’s. It could also attract new buyers for well-known NFTs.

However, CryptoPunks with particular merits can hold or increase in value even though the market overall may not be as lucrative as it was at its maximum.

FAQs

FAQs

Should you invest in CryptoPunk?

Cryptocurrencies are very volatile and can rise and fall in value rapidly. Traders should always do their research before investing in any cryptocurrency or NFT projects.

How many CryptoPunk are there?

There are around 10,000 CryptoPunks in total. Their NFTs were generated using a computer-generated algorithm when it was first announced in 2017.

How much were crypto punks originally?

The original CryptoPunks were each sold for 0.00001 ETH (approximately $0.02 at the time of sale).

Some people were attracted to the DIY and punk aesthetic of the crypto punks, while others were drawn to the political and social message that the crypto punks were conveying.

Additionally, the crypto punks were able to tap into a growing interest in digital currencies and blockchain technology, which helped to boost their popularity.

Read more: TOP 10 Best Blockchain Solutions & Its Use Cases In 2022: What Are The Benefits

Conclusion

It’s impossible to predict how important cryptocurrencies will be to the common individual in future years.

While the excitement surrounding NFTs may have peaked, cryptocurrencies are undoubtedly here to stay. Thinking about the potential future developments in the fascinating crypto world is exciting.

Disclaimer: The information provided in this article is not investment advice from Cove Markets. Cryptocurrency investment activities are yet to be recognized and protected by the laws in some countries. Cryptocurrencies always contain financial risks.

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