What started as an experiment in art, scarcity and demand is now the most expensive NFT collection of digital assets in the world – with a collective value of over $770,000,000 USD. These NFTs are called CryptoPunks.
This cohort of 10,000 on-chain pixel avatars have transcended their artistic value, becoming cultural icons, status symbols, and a landmark piece of internet history – but what exactly are they, what should you know about them, and why exactly are they so expensive?
Master the topic, as we explain the past, present and future of CryptoPunks in 2024.
What are CryptoPunks?
CryptoPunks is one of the earliest and most influential NFT projects on the Ethereum blockchain.
Created by Canadian developers Matt Hall and John Watkinson of Larva Labs in June 2017, the collection contains 10,000 unique pixel art avatars known as “Punks.” Each Punk is algorithmically generated, possessing its own distinct set of attributes, making each one of them one-of-a-kind.
The Punks are primarily human characters, divided into 6,039 males and 3,840 females, each with various accessories like hats, sunglasses, or earrings, for example. Aside from humans, there are a number of rare types that have become highly coveted:
- Zombies: 88 Zombie Punks have green skin and zombie-like features
- Apes: 24 Ape Punks have brown fur and ape-like faces
- Aliens: 9 ultra-rare Alien Punks have light-blue skin, and are the most coveted in the collection
The aesthetic draws inspiration from the 1970s punk movement, giving the collection a raw and edgy vibe that resonates with many in the crypto community. With 87 possible attributes, and a single Punk having anywhere from zero to seven traits, the uniqueness and rarity of each Punk has greatly contributed to their appeal.
Why are CryptoPunks the most expensive NFT collection?
When CryptoPunks were minted in 2017, NFTs were far from mainstream attention.
Matt Hall and John Watkinson wanted to experiment with how blockchain technology could impact the scarcity and demand of digital art. CryptoPunks were totally free to claim to anyone with an Ethereum-supported wallet.
Initially, interest was modest, with only 800 to 1,000 claims in the first week, but after coverage from Mashable, all 10,000 CryptoPunks were soon claimed – and from then on, interest only grew.
Some notable early collectors include many names that will be familiar to NFT fans – Pranksy, 6529, and seedphrase – and their involvement helped attract a larger community to CryptoPunks.
When NFTs began to reach larger audiences in late 2020 and entering 2021, CryptoPunks were heralded as the gold-standard of the medium – and soon, CryptoPunks became the world’s most valuable NFT collection (a title it holds to this day), with individual Punks selling for eye-watering prices.
CryptoPunks hold 6 of the top 10 most expensive NFT sales of all time, including CryptoPunk #5822 – an Alien variant – selling for $23.7M USD (8,000 ETH) in February 2022, and CryptoPunk #7523 – known as the COVID Punk, owing to its face mask – selling for $11.7M USD (4,700 ETH) in June 2021 at a Sotherby’s auction.
Despite this success, CryptoPunks have faced their fair share of challenges.
V1 Punks – the original NFT collection for CryptoPunks – contained a bug in its smart contract, leading to the adoption of V2 Punks as the main CryptoPunks collection you see today. V1 Punks lives on, despite Larva Labs distancing themselves from the collection.
There has also been uncertainty regarding the intellectual property rights of holders, leaving many unsure about how they could use their Punks – which was resolved when Yuga Labs acquired the management of the CryptoPunks collection in March 2022, and subsequently gave the IP rights to the holders.
What’s next for CryptoPunks?
Since the acquisition of CryptoPunks by Yuga Labs – creators of the popular Bored Ape Yacht Club NFT collection – in March 2022, CryptoPunks have largely remained untouched – with one notable exception.
In February 2023, Yuga Labs announced their “Punks in Residence” program, partnering with mainstream artists to create derivative works based on the CryptoPunks brand – though it all went up in smoke at the first attempt.
Nina Chanel Abney is a celebrated artist, with her work featured in multiple high-profile galleries across the world – but online backlash to her “Super Punk World” collection was so strong that Yuga cancelled the auction, gave all 500 NFTs away via a random airdrop, and hit pause on the Punks in Residence program altogether.
Despite this, CryptoPunks continues to be – by far and away – the most expensive NFT collection and Yuga’s largely hands-off approach has helped to enshrine the collection’s status, prominence and recognition.
Whilst the NFT market sees its fair share of volatility, the historical significance of CryptoPunks makes its future as a top collection largely secure, and combined with its dedicated community – with dedicated creators, influencers, and celebrities alike – the Punks will surely be a noteworthy project for a long time to come.
Riding crypto waves since 2012, bridging digital and physical worlds through prose.