CryptoPunks vs BAYC: The Battle for Kings in Crypto Narratives

  • Last week, Yuga Labs acquired the collection of CryptoPunks and Meebits from Larva Labs. After the acquisition, Yuga Labs will own the brand, artistic rights and other intellectual property rights of these two series, as well as 423 CryptoPunks and 1711 Meebits, which also brings Let’s discuss the copyright issues of NFTs.
  • After CryptoPunks experienced a surge in NFTs last year, its average price fell by 61.40% in the face of a bearish crypto market. After the acquisition, its floor price has not changed much compared to before.
  • Despite ETH’s sharp decline, BAYC’s valuation hasn’t been affected much by cryptocurrency prices. The average price is up 88% compared to three months ago, and floor prices have risen after the acquisition.

The leader in the PFP market

Currently, PFP projects are one of the most popular categories in the NFT market. According to the ranking data of NFTGo.io, PFP projects account for 70% of the NFT market share.

CryptoPunks vs BAYC: The Battle for Kings in Crypto Narratives

Data source: NFTGo.io

In the PFP project, CryptoPunks and BAYC are the two leading blue chips respectively. Since NFT summer, these two projects have been ranked at the top, first and second respectively.

CryptoPunks vs BAYC: The Battle for Kings in Crypto Narratives

Data source: NFTGo.io

Founded in 2018, CryptoPunks has been making a splash in the NFT market. As the OG of NFT PFP, CryptoPunks is the representative of the identity and qualifications of NFT enthusiasts. Currently, cypherpunks hold 11.3% of the entire NFT market share

CryptoPunks vs BAYC: The Battle for Kings in Crypto Narratives

Pie chart of market share by different projects 

Data source: NFTGo.io

The Boring Ape (BAYC) is also a widely followed top blue chip that has reached a market cap of over $800 million and a $5 billion valuation from a16z. In addition to BAYC, Yuga Lab also owns the MAYC (Mutant Ape Yacht Club) and BAKC (Mutant Ape Kennel Club) series, generating a total of over $1.3 billion in revenue.

CryptoPunks vs BAYC, who is better?

Market performance of cypherpunks

In the first week of October 2021, the frenzy in the market pushed the average price of punks to 137 ETH. It is worth mentioning that the price of 1 ETH was $4151 at that time, and the price of 1 ETH today is about $2700. Meanwhile, the CryptoPunk transaction broke the record for the most expensive PFP NFT transaction ever.

However, while CryptoPunks has performed amazingly in the past, the project has experienced severe price spikes and slumps recently. Comparing the price chart to summer 2021, the impact of the market downturn on CryptoPunks becomes more apparent.

CryptoPunks vs BAYC: The Battle for Kings in Crypto Narratives

Data source: NFTGo.io

Right now, many investors don’t see value in buying millions of dollars in pixel JPEGs because the market isn’t as bullish as it used to be and FOMO sentiment is gradually fading from the market. Nonetheless, CryptoPunks is still the OG NFT project with the most whales on the market, and is almost a must-know project for entry-level NFTs.

BAYC’s Market Performance

Currently, BAYC trading volume has increased by nearly 88.92% amid the sluggish NFT market in the past week.

CryptoPunks vs BAYC: The Battle for Kings in Crypto Narratives

Data source: NFTGo.io

Last week, BAYC’s top sales ranged from 120 ETH to 250 ETH. There was also a transaction record of 666 ETH not long ago. From the high volume of transactions and the entry of a large number of giant whales, it can be seen that they still believe that holding BAYC is a valuable asset, and are willing to continue to buy in the case of a market downturn.

CryptoPunks vs BAYC: The Battle for Kings in Crypto Narratives

Data source: NFTGo.io

By looking at NFTGo’s historical BAYC price chart, it can be seen that, unlike CryptoPunks, the ETH price of BAYC NFT has been rising, reaching high levels, despite the sharp drop in ETH’s value.

Currently, the average price of the boring ape has risen to 88.2 ETH, with the current value of ETH around $2,700. Floor prices have also risen by 41% over the past seven days.

CryptoPunks vs BAYC: The Battle for Kings in Crypto Narratives

Data source: NFTGo.io

We can calculate the net loss in value of these two top blue-chip NFT projects by multiplying the average price at the time by the ETH price and then comparing the value to today’s valuation.

In fact, as the price of ETH fell, the net change in the valuation of CryptoPunks was negative and that of BAYC was positive. CryptoPunks relied on its genesis story and discovery to lead the market in the NFT summer, but in the face of the decline in the crypto market, its value also fell by more than 50%, which is closely related to market sentiment. However, despite Ethereum’s sharp decline, BAYC’s valuation has not been affected much by the price of the cryptocurrency and remains at its original value.

The floor price changes for the first two projects of the IP acquisition are shown below. From mid-summer to early January 2022 for NFTs. Both projects saw declines, but CryptoPunks saw a bigger drop in floor prices.

CryptoPunks vs BAYC: The Battle for Kings in Crypto Narratives

Floor Price Comparison of CryptoPunks and BAYC

Data source: NFTGo.io

Branding and Narrative Style

BAYC’s team attaches great importance to membership, and gives BAYC membership to holders, and is gradually improving members-only ecological content around BAYC, including member-exclusive BATHROOM for them to create, graffiti, communicate, etc., T-shirts, Peripheral products such as hoodies are also exclusive entity empowerment for members.

CryptoPunks vs BAYC: The Battle for Kings in Crypto Narratives

In addition, in addition to BAYC, Yuga Labs has also extended its products horizontally to BAKC and MAYC. The pets in BAKC are free for each BAYC member, and only need to pay gas. The IPs under the Yuga team realize mutual value. support.

The commercial use rights of BAYC NFT are also given to specific holders. On December 22, 2021, 33 BAYC holders cooperated with Taiwan e-commerce group to launch 3D three-dimensional dolls, fashion apparel and other businesses. This makes the realization of BAYC’s commercial value more possibilities. Yuga Labs and renowned music manager Guy Oseary have signed an IP co-development agreement. At the same time, they also collaborated with Jimmy McNiles and even Universal Music to form a virtual band with his four apes to expand the music market together. The development of BAYC is inseparable from its decentralization of NFT commercial copyrights and an increasingly perfect ecosystem built around commercial copyrights.

The positioning of CryptoPunks is more like an NFT creation collection, and the value support behind it comes from the groundbreaking narrative elements it carries. It is like an antique waiting to be collected, and it is more inclined to a value storage method.

The relationship between the rarity and price of CryptoPunks and BAYC is shown below, respectively. It can be seen that the value of collecting CryptoPunks is positively related to the rarity, the rarer the more expensive. BAYC’s collecting behavior is mainly driven by membership, so the relationship between price and rarity is not as obvious as the former.

CryptoPunks vs BAYC: The Battle for Kings in Crypto Narratives

Left: Cryptopunks, Right: BAYC

Data source: NFTGo.io

Copyright issues under strong alliance

For a long time, Larva Lab has been silent about the development of CryptoPunks, and has not made clear statements about commercial applications and copyright issues. In August 2021, Larva Lab will hand over the publishing exposure opportunities of various film, television and entertainment platforms to UTA, a Hollywood agency, instead of giving it to the holders and founders after selling v1 CryptoPunks and obtaining large profits. Such issues have aroused the dissatisfaction of the holders.

In the post-acquisition statement, Yuga Labs emphasized that the first thing to do is to give CryptoPunks and Meebits NFT holders full commercial rights, which can also be traced back to Yuga Labs’ initial grant of BAYC and MAYC owners ownership and Commercial use rights, Yuga Labs also plans to work with community members to integrate these two NFT series more with Web3.

Generally speaking, the copyright of the NFT does not belong to the buyer. Yuga Labs has granted BAYC the ownership and commercial use rights, which will be granted to the buyer when a transaction occurs. BAYC grants Bored Ape NFT holders full commercial rights to use, reproduce and display the purchased collectibles, as well as create creative derivative works from it.

The copyright protection of digital native assets has always been a difficult problem, because “copying and pasting” is too easy, making it very difficult to confirm digital rights and safeguarding rights, and then the copyright issue about how to define NFTs ensues.

In 2018, the encrypted cat creation company Dapper Labs released the NFT License, which clearly stipulates that NFT holders shall not arbitrarily change the artistic image of the NFT they hold, and shall not use it for commercial marketing or the production of third-party products. Additionally, NFT holders must not be associated with inappropriate imagery, or register trademarks or acquire other intellectual property. It can be said that this standard basically excludes most of the commercial interests of the holder.

But will this be good for the ecology?

Smart project creators understand that only when the influence of the entire IP grows can it truly benefit every holder. The case of Yuga Lab is one example. The crypto movement advocates an open, transparent and shared world, the basic unit of which is the open community. Any copyright restrictions seem incompatible with the values ​​of the crypto world.

Suppose the copyright war ends in a quadrant. The far left of the X-axis is the fully closed old world copyright standard, and the far right is the fully open CC0 copyright agreement. It is worth noting that the final direction of NFT copyright depends on the attitude and promotion of the community and project parties.

Epilogue

The punk creator said on the web that they were not “perfect” to support the project. The merger of these two most powerful NFT projects also shows us that some projects can complement each other’s strengths to build a better community together.

CryptoPunks vs BAYC: The Battle for Kings in Crypto Narratives

The reaction of both project holders also bodes well for future growth expectations. Fans started a #ApesandPunksTogetherStrong campaign on Twitter to express their interest in the acquisition.

The current decline in NFT growth rate may also indicate that the market will become more mature, and as the market gradually expands, there will be more similar copyright buying and selling scenarios in the future. This cooperation may be a milestone in the NFT ecosystem. The power generated by these two top blue-chip NFT projects is enough to change the development trajectory of the NFT market, and subsequently bring more valuable opportunities to all NFT Hodlers.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/cryptopunks-vs-bayc-the-battle-for-kings-in-crypto-narratives/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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