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Are CryptoPunks good investments? Daily NFT spotlight by Rain

By RAIN EDITORIAL TEAM - May 23, 7:00 PM

Being on the top of any industry is a great achievement, let alone if that’s the notoriously highly competitive Non-Fungible Token (NFT) space. CryptoPunks was not only among the very first collections ever, but played a significant role in introducing the NFT standards we know today by being the go-to reference for many. Today, CryptoPunks are in the spotlight, so we’ll tell you everything about them, and try to see whether they are worth their often hefty price tags.

What are CryptoPunks?

CryptoPunks are characteristically pixelated avatars with hundreds of different traits and attributes that make each piece from the 10,000 fully bespoke. The specs include various background colors, faces, clothing, hats, accessories, and even body types, which also make some CryptoPunks rarer than others. This didn’t mean a lot when they came out, as the project lacked traction, and the pieces sold between $1 and $34. Today, getting a medium-rarity CryptoPunks will likely set you back around 10-20 ETH, worth around USD 20,000-40,000.

Issued on the Ethereum blockchain, the collection’s pieces are not ERC-721 compliant, which is the rule often referred to as the NFT standard. This is simply because by the time they were minted by Larva Labs in 2017, there was no ERC-721 standard to begin with. Instead, CryptoPunks are “almost ERC-20 tokens”, at least according to the issuers. In any case, from a user’s point of view, there’s not much difference as to how to handle these legendary digital items.

What makes CryptoPunks special?

First off, many credit CryptoPunks for kick starting the NFT industry we know today, which is a huge deal. In other words, without CryptoPunks, there is a chance that none of the globally popular NFT collections would have existed, and neither would a multi-billion dollar tech space.

On top of the high historic significance, CryptoPunks are essentially collectibles and investments as they don’t feature any intrinsic use case. This is no issue, as they are among the first collections ever, and even their existence is close to a miracle. 

An interesting fact: CryptoPunks were so influential that they are even referenced in the official ERC-721 proposal as a framework to base the NFT standard on, which is truly remarkable.

Who issued CryptoPunks?

CryptoPunks were issued by Canada-based two-man tech startup Larva Labs, who are now renowned figures of the NFT space. John Watkinson and Matt Hall, the founders of Larva Labs, always regarded themselves as enthusiasts of the crypto space, and that was their main drive behind experimenting with something that has never been done before. 

About CryptoPunks’ future and summary

As mentioned above, since CryptoPunks are basically collectibles and digital artwork, holders should not expect any utility or use case for their tokens in the near future. However, considering the historic significance, and the extremely well known image of CryptoPunks, they could very well be great investments for those that can afford their often lavish prices.

In any case, you’ll need ETH to get yourself CryptoPunks, or any Ethereum-based NFT for that matter. Head over to Rain to get your ETH holdings ready for some NFT shopping, and remember the collection that started it all while browsing through countless projects.

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