After Bitcoin – the first-ever cryptocurrency and Ethereum, Non-Fungible-Tokens (NFTs) are also revolutionizing the crypto world. One of the earliest collections of these tokens is known as Cryptopunks. A few years ago, when Cryptopunks appeared as a new initiative, nobody thought that one day it would come this far by becoming an incredible project. Currently, they are one of the biggest crowd-pullers within the Non-Fungible-Token community. It is essential to mention that Cryptopunks were the very-first NFTs on the market. Recently, they are worth millions of dollars. You can click here for a safe and reliable trading platform.
The most surprising news yet is that a conventional auction house will offer a sample of this innovative work. Hence, it is sluggishly making its way into the real-life art sector. In 2021, the demand for NFTs sky-rocketed. In the case you are less familiar with the hype around Non-Fungible-Tokens, comprehending and mastering their worth would surely be a tough task for you. The majority of the population who does not belong to the NFT community is unable to understand the phenomenon behind Cryptopunks. This article will provide you with all the essential things to know about these punks.
What Are Cryptopunks?
Cryptopunks are a sort of collectible NFTs with Proof of Ownership kept at the Ethereum network. The collection contains ten thousand distinctive 24×24 pixels digital art characters. These characters exist in the punk style that leads to their name i.e., Cryptopunks. The collection also features some special zombies, aliens, and ape characters. Each of them contains a profile page that displays its ownership status, features, and properties. Digital images are too big to be kept on the blockchain. That is why; developers came up with the idea of developing a composite image of all ten thousand and got a hash or number of that image which they implanted in Smart Contract.
In the very beginning, anyone with an Ethereum wallet used to receive free Cryptopunks just for holding Ether. Nowadays, if you want to own Cryptopunks, you need to buy them from the marketplace. Cryptopunks fueled the establishment of the ERC-721 standard that permits the development of unique Non-Fungible-Tokens for collectibles and virtual art. The characters of Cryptopunks are rare, which makes them so much value in the NFT market. Cryptopunks is the latest way of asset tokenization.
How Did Cryptopunks Start?
Cryptopunks was launched for the very first time in 2017 and appeared as the first-ever NFT. Moreover, the platform utilizes the Ethereum Network to power the development and infrastructure of the punks. Larva Labs are known as the founders and developers of Cryptopunks. To be honest, this initiative began as an experiment instead of something pre-planned. However, with time, this project has turned into something incredible completely. It was just a fun project with the purpose of entertaining people, and they enjoyed it a lot.
What Makes Cryptopunks Unique?
- Being one of the earliest NFT projects on the Ethereum blockchain declares it a unique and special project and makes it valuable. It was initiateda few months before the release of CryptoKitties – a well-known cat-breeding game and an NFT project.
- There are only 10,000 Cryptopunks, and the number will never-ever increase. This phenomenon builds a scarcity of Cryptopunks among collectors and makes them more valuable.
- Some characters of Cryptopunks are more worthy than others based on their features and properties.
- There is a Cryptopunk with more than one attribute that makes it a lot more valuable than others.
- Scarcity is not the only factor that givesCryptopunks this much value. Sometimes, the collector may fall for the looks of a character.
Pros & Cons of Cryptopunks
- The limited supply of Cryptopunks produces scarcity which raises the prices.
- These are one of the beginning Non-Fungible-Token collections.
- Transactions are safe and secure as you have to use Ether to buy them from your Ethereum wallet.
- Anybody at any time can get himself registered on the NFT marketplace.
- The Ethereum blockchain charges high fees.
- Cryptopunks may lose their worth if the interest of people dwindles in Non-Fungible-Tokens.
- A major drawback of Cryptopunks is that you can only buy them using Ether, and there is no option for traditional payment.
- They are too expensive to buy. Some of the characters are worth millions of dollars.