NFTs are becoming increasingly popular among investors. Even though the first NFT was only released in 2014, investors around the world have already invested an astonishing $174 million on these collectible items!

Among the most popular NFTs is CryptoPunks. These pixel art pieces are selling at impressive rates and are being described as the best NFT investments in 2022. It is one of the oldest and most popular NFTs on the market. 

If you’ve never heard of CryptoPunks or are interested in investing in them, but want to do a bit of research first, here’s what you need to know about this NFT collection.

What Is an NFT?

Before discussing CryptoPunks NFTs, it may be helpful to first understand exactly what an NFT is. This is a new concept for many people, and it is essential to understand what these digital assets are in order to understand what CryptoPunks are.

NFTs are non-fungible tokens, which means that they are unique digital assets. Although cryptocurrencies, such as Bitcoin and Ethereum, and NFTs may seem like the same thing, cryptocurrencies are fungible tokens, whereas NFTs are non-fungible.

These two digital assets are often compared because they are both stored on a blockchain, which stores incorruptible records of transactions. However, there are key differences between the two.

Fungible Versus Non-fungible Assets

To understand these two concepts, let’s take one Bitcoin token and compare it to an NFT. You can exchange one Bitcoin for another Bitcoin token just like it. However, you cannot exchange one NFT for another NFT like it.

This is because NFTs are unique digital assets, which means that there isn’t another asset like it in the world. You can compare an NFT to a limited-edition Rolex watch in the real world.

Because it’s the only one of its kind on the market, it is highly desirable, and as we know from supply and demand, the cost increases when there is a low supply and a high demand. It is the same for NFTs.

CryptoPunks, which are among the most sought-after digital assets, are highly priced for this reason! 

What Are CryptoPunks?

CryptoPunks is a series of 10,000-pixel graphics, each of which features a unique personality, combination, or particularly unique characteristics created at random. Currently, there are over 6,000 male and over 3,800 female Punk characters in a set of 10,000-pixel graphics.

Some have crimson lips, baseball caps, 3D glasses, buck teeth, and braided hair, while others sport a stylish beanie.

However, some characters may lack distinguishing characteristics or features. Such NFTs are referred to as “Genesis Punk” characters. CryptoPunks is perhaps the most popular non-fungible token project on the Ethereum blockchain because it was one of the first NFT initiatives on the Ethereum network.

According to Decrypt, the NFT collection had a transaction volume of over $118 billion.

Anyone Can View Cryptopunks, but Only Investors Can Own Them

On the Larva Labs site, you will find a series of images of all 10,000 CryptoPunks. Anyone with a pen drive or hard drive can save a copy of the digital image file. Every Punk character gets its own webpage with information on its unique qualities and transactional data.

Even though anyone can see and access them, a CryptoPunk can only belong to one person.

Legal ownership of each piece is stated in an agreement on the publicly viewable Ethereum blockchain.  

According to the company, the record of transactional history is incorruptible and is expected to be incredibly long-lived. Every artwork’s ownership record is also monitored and archived in the blockchain.

Who Created CryptoPunks?

John Watkinson and Matt Hall, the creators of American Larva Labs, a New York-based software firm, built a software application in 2017 that could create multitudes of unusual characters.

The duo felt they had the beginnings of a mobile application or game at first. They came up with a paradigm-shifting strategy for the virtual art market and a challenge to the very idea of “ownership.”

This concept was inspired by Punk London, a virtual punk society that incorporates William Gibson’s novel Neuromancer, the movie Blade Runner, and the punk band Daft Punk. 

Moreover, according to Watkinson and Hall, the beginnings of the blockchain initiative had a loud, anti-establishment tone. It was a feeling they sought to convey through their Punks’ appearances. 

They added that these characters needed to be a bunch of weirdos and non-conformists. The punk scene in London in the 1970s seemed like the proper style.

When Were CryptoPunks First Released?

The ERC-721 specification that enables most virtual art pieces and collectibles was inspired by these Punks, which are regarded as one of the first demonstrations of NFTs on the Ethereum blockchain.

Hall and Watkinson started Larva Labs in 2005. In June 2017, the two creative engineers launched their CryptoPunks art collection, raising the four-year-old conceptual question, “What is ownership in the digital realm?” and “Will consumers be willing to pay for something like a virtual certificate of authenticity?”

The CryptoPunks Community Is Very Active

More than 8,000 transactions have been registered from April 2020 to April 2021, with an average selling price of 15.45 ETH, which is over $30,400. The overall value of all transactions is 127,360 ETH, which is over $251,620,000, and it’s increasing every day.

CryptoPunk NFT number 6965, an ape Punk that is depicted wearing a fedora, was purchased for 800 ETH or over $1.5 million! 

Additionally, CryptoPunk number 7804, the wise alien that is seen smoking a pipe, was bought for $7.5 million in March 2021, the largest amount ever spent on a Punk character at the time. However, this impressive record was broken the very next day!

Some CryptoPunk Characters Are Rarer Than Others

In addition to the human-looking CryptoPunk characters, Watkinson and Hall altered their sophisticated algorithms to produce a smaller number of exotic, non-human pieces, including 24 hairy ape Punks, 88 green zombie Punks, and nine blue-skinned extraterrestrial Punks to the collection. 

These non-human Punks, much like their human counterparts, have a variety of accessories and apparel: one extraterrestrial, for example, is known as the ‘wise alien’ because he smokes a pipe.

The Prices of CryptoPunks NFTs Vary

CryptoPunk NFTs are available at a variety of prices. The minimum or baseline price for purchasing CryptoPunk NFTs on the resale market is under 80 ETH.

According to the company, CryptoPunk number 1417 was sold for 79.99 ETH. However, in early 2020, the cost for these characters was substantially lower, at just 0.9 ETH, making it one of the best opportunities to buy a CryptoPunk. 

Unsurprisingly, many investors bought expensive CryptoPunk NFTs within seven days in early 2020. Today, you can expect to pay around $200,000 (64 ETH) for one of the least expensive NFTs!

What’s the Most an NFT Investor Has Ever Paid for a CryptoPunk NFT?

Shalom Mackenzie, a member of parliament and a shareholder in a major sports company, purchased the most expensive CryptoPunk NFT on record at a Sotheby’s auction for a whopping $11.8 million.

The sale of that artwork has surpassed the old record of 7.7 million dollars set by alien CryptoPunk number 7804, purchased in March 2021.

Aside from both works, Visa, the credit card titan, has purchased CryptoPunk for a staggering $150,000. It didn’t end there, though. A Chinese investor received the highest amount for CryptoPunk’s sales, which totaled over $380,800.

What Drives the Price of These NFTs?

Some of you may be wondering why these CryptoPunk NFTs are so successful after seeing the prices people have paid to acquire them. They’re just jpeg images, after all! In the section below, we cover some of the reasons why these digital artworks are so expensive.

1. One of the First NFTs on the Market

The truth is that one of the main reasons why CryptoPunk characters are so popular is that it was one of the first initiatives on the Ethereum blockchain.

In a nutshell, the initiative is the forerunner of the NFT and has served as a model for numerous comparable art projects such as Pudgy Penguins, the Bored Ape Yacht Club, and many others.

2. Rarity Contributed to the Exorbitant Prices

Additionally, the fascinating originality of CryptoPunks’ collection, such as Alien Avatar, which is also the rarest and most valuable CryptoPunk NFT ever purchased, contributes to the high prices of these assets.

3. Excellent Return on Investment

Moreover, investors buy these digital assets because they tend to grow in value, much like other investments. This means that if you bought a CryptoPunk NFT in 2020 for 80 ETH, it could be worth $1 million today, which is roughly 329 ETH.

That’s four times what you originally paid for it! 

4. Social Standing

The truth is that making a profit isn’t the only reason why people invest in these NFTs. They also do it for the social standing it offers. Because, like other sought-after brands in the physical world, buying a sought-after digital artwork can offer the investor a better social standing.

How to Buy a CryptoPunk NFT

Buying a CryptoPunk NFT is easy! All you need to do is set up an Ethereum wallet, buy Ether using the wallet or via an exchange, head over to the CryptoPunks website and make the purchase!

If you’ve never purchased an NFT before or don’t have a digital wallet, don’t worry! We’ve drawn up a comprehensive guide on how to buy a CryptoPunk NFT. You can use this step-by-step guide to help you purchase your CryptoPunk character in no time!

Currently, CryptoPunks may only be purchased through the LarvaLabs official website. Watkinson and Hall control this website, and there is a CryptoPunk marketplace on the website where users can acquire avatars from other owners or sell their own! 

Hundreds of various CryptoPunks are available for purchase on the LarvaLabs website. The lowest of these characters currently costs over $194,000, which is still a lot of money for most people!

As mentioned before, you might be able to buy some of the more unusual characters, such as apes, aliens, and zombies, but be ready to pay significantly more for these pieces!

Final Thoughts About CryptoPunks NFTs

If you’re a first-time investor, starting your NFT collection with a CryptoPunk character may not be the best idea. Instead, start small until you have the hang of it. That being said, CryptoPunk NFTs are one of the best investments you can make in 2022!

This is because the NFT trend is only beginning, and CryptoPunks have the advantage of being one of the first-ever NFTs on the Ethereum blockchain, which means that their value is only going to increase!

Moreover, you’ll also have the joy that comes with collecting artwork, like the joy that a collector of renowned paintings has. If you’re looking for more resources on NFTs, including how to buy them, create them, and sell them, you’ll find everything you need on our website!