CryptoPunks Explained – Why Pixelated Artwork Is Selling For Millions of Dollars

CryptoPunks Network Review

CryptoPunks are an interesting concept and for many a rather unbelievable one. In short, they are pixelated digital characters that live on the Ethereum blockchain, meaning they cannot be replicated, stolen or forged. What makes CryptoPunks so mind-blowing is the price; just last week CryptoPunk #5822 sold for 8,000 ETH (about $23.7 million).

But why are people investing so much in these? The artwork isn’t exactly groundbreaking as all the CryptoPunks are pixelated, so what makes them worth so much?

Well, the price comes from their desirability as collectables. There were only ever 10,000 CryptoPunk NFTs minted, and there will be no more. Furthermore, every single Punk is one-of-a-kind, so, unlike other NFT collectable projects, you can guarantee there is no other Punk out there like yours.

As the original NFT Art project started back in 2017, CryptoPunks has inspired creators from around the world and helped demonstrate the usefulness of the ERC-721 standard, the current standard token format for NFTs on the Ethereum blockchain.

The innovation of the project also helped to boost CryptoPunks into the limelight and further raise the value of the NFTs. As of today, many celebrities including Jay Z and Jason Derulo have purchased CryptoPunk NFTs and are using them as their Twitter profile pictures.

How Does CryptoPunks Work?

The concept of CryptoPunks is simple, and that was what captured the public’s imagination. Showcasing the power of NFTs for the first time, CryptoPunks captivated its audience by appealing to human nature and people’s love of collecting.

There is no game involved, the project is simply about the Punks. Some people simply buy and collect, others buy as an investment so they can resell for a profit. This showed the world what can be achieved with this technology and paved the way for other NFT collectable projects. 

CryptoPunks come in many different themes including zombies, aliens and pirates, and some themes have much fewer NFTs in the set, making them much more valuable to collectors. For example, out of 10,000 Punks, there are only 9 in the alien set. As all CryptoPunks are now owned by someone, the price, in theory, is continually rising amongst collectors.

Even in amongst the themes, every Punk has unique features, with some features adding more value.

What Are They Used For?

Although CryptoPunks don’t actually have much use within themselves, they can be used for a variety of purposes.

Many people who own Punks use them as a sort of online persona or ID. As each CryptoPunk is unique, you can set yours as your social media profile picture and showcase your one-of-a-kind digital asset; they are especially used as a status symbol amongst cryptocurrency circles.

With the introduction of Metaverse titles, your Punks can also be displayed within your personal space in full 3D. As the world slowly transitions into Web 3.0, CryptoPunks will gain retro appeal as a culturally significant piece of history.

Punks have also been purchased simply as an investment. We have already seen the prices of Punks skyrocket over the last 5 years, and if this trend continues then investments could see huge profits in the future.

What Makes Them So Expensive?

Hype is the biggest contributing factor to CryptoPunk’s success. As the first project to utilise NFTs in this way, it will go down in history with the likes of Super Mario as a truly world-changing innovation, and the Punks will eventually become antiques.

Of course, desirability amongst collectors has a huge part to play too. Humans have a natural love of collecting. In fact, archaeologists have discovered that even as far back as 100,000 BC humans have been collecting crystals.

As each Punk is unique, collectors revel in claiming as many as they can, especially the rarer ones such as the alien set.

Are There Any Risks?

It depends entirely on what you’re buying your Punk for. All investments come with risks, and so if you’re purchasing a Punk with hopes to resell for a profit you might need to consider that it may lose its value. As CryptoPunks lives on the Ethereum chain, if the price of Ether crashes, your Punk will also lose value.

And remember, even if the price does theoretically rise, you’ll still need to find someone to buy it for that price. 

But buying for simple ownership comes with risks too. At the start of the month, CryptoPunks realised that, due to a fault in the original coding, all Punks could – surprisingly indeed – be stolen. The issue was soon fixed and everyone who had a faulty Punk has been reimbursed with a new version.

This highlights the fact that the technology is still new and is being built upon every day, meaning getting involved now may still carry some risks, even if it doesn’t seem like it.

Should I Get A CryptoPunk?

Well, if you want to get one, it’s going to cost you a lot of money. The current lowest-priced Punk is going for 70 ETH, or about $220,000. There are no more to buy directly from the company and they must be purchased from an owner who sets their own price.

If you are buying a Punk intending to resell it for a profit then remember that there are many risks involved with NFTs, especially ones such as these that don’t have many other uses as we go forward into the next generation of the internet.

The best reason to purchase a CryptoPunk is to showcase it and keep it as a piece of history; maybe to display it in your metaverse space to show you got into the blockchain revolution early.

Potentially, in the future, these Punks will be as symbolic as figures such as Che Guevara and Sonic the Hedgehog and owning one means you own a real part of history. But for this, only time will tell.

Further CryptoPunks Information

  • unicly-cryptopunks-collection
  • Unicly CryptoPunks Collection
  • Price
  • Market Cap
    $5.38 M
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