Author | William M. Peaster
Summary: Different ways to obtain the cultural value of encryption
Dear Bankless community:
CryptoPunks is one of the OG NFTs on Ethereum.
In this past spring, a historic event happened. Christie’s, one of the largest traditional auction houses in the world, announced the sale of 8 CryptoPunks.
The lot was sold for US$17 million.
Although these are some of the most expensive on the market, Punks are not cheap. period. The current reserve price of a CryptoPunk is 17.5 ETH-about 40,000 US dollars at today’s price! But these are just pixelated jpegs.
But these are just pixelated jpegs. Why would someone spend tens of thousands of dollars (or millions of dollars) to buy one?
As we discussed in this week’s podcast, it comes down to the desire to imitate. CryptoPunks have historical significance-they are crafts of the Internet and encryption culture-which make people want them, which makes more people want them, and so on.
Here is the part where I talk about how much I want one).
So do you want one?
Is there a way to have the benefits of CryptoPunks without paying $40,000?
Yes, there is.
Here’s how to get a part of the cryptocurrency culture.
How to get in touch with CryptoPunks
CryptoPunks is one of the most exciting and story-telling non-fungible token (NFT) projects in cryptocurrencies. As one of the OG NFT projects on Ethereum , CryptoPunks has also developed into one of the most expensive projects in the ecosystem. For many people, having their own Cryptopunk is out of reach. Fortunately, there are some ways to solve this problem.
This bankless tactic will show some ways to gain access to CryptoPunks without having to buy directly.
Goal : Learn how to access CryptoPunks in your portfolio, even indirectly
Skills : Intermediate
Effort : varies according to the application used
Return on investment : CryptoPunks is a historically significant project in the Ethereum ecosystem, and its value has room for improvement.
Why Crytopunks are important
The picture below is CryptoPunk #2. She is not only a beauty, but also the third CryptoPunk ever. She and eight other CryptoPunks auctioned $16.9 million through one of the world’s leading auction houses, Christie’s, earlier this year.
How can this become mainstream?
Three years ago, Christie’s auction house was completely indifferent to NFT. Therefore, the fact that the auction house and its biggest competitor Sotheby’s recently went crazy for CryptoPunks shows how quickly the landscape in and around the NFT ecosystem changes.
In other words, CryptoPunks not only inspired the ERC721 NFT standard, but also led the trend. The project has now become a leading NFT force, and its influence is not only in the Ethereum space, but also in the broader cultural environment of the roaring 2020s.
In summary, CryptoPunks are not cheap now. Everyone wants one. According to Larva Labs market data, the cheapest Punk now sells for about 17.5 ETH (about $38,500 as of press time).
This money is out of reach for most people, but the good news is that you can access CryptoPunks without having to buy it directly. In this strategy, we will focus on the mainstream methods of contacting Crytopunks without direct purchase.
Estimating the value of Cryptopunks 101
Etheria can be said to be the first suitable NFT project on Ethereum. However, it was CryptoPunks that popularized the ERC721 standard and continued to be a consensus “OG” NFT project.
This is why we have recently bought CryptoPunks from superstars like Jay-Z. why? Because Ethereum is interesting and contains opportunities, and one of the most profound and interesting things you can do on Ethereum is to buy a CryptoPunk.
It is part of the internet and cryptocurrency culture!
So, should Punk get up or shut up, right?
It does not have to be so black and white. Even if you are a retail investor, there are ways to use Crytopunk’s capital. Before we discuss these strategies, it is a good idea to introduce the fundamentals so that we know what issues we are dealing with.
When it comes to the valuation of Cryptopunk, some of the key things to keep in mind include.
Subjectivity, subjectivity, subjectivity: Many people just want a punk that looks a bit like themselves, so orthogonal to the price, they are looking for appearance. So remember, to some extent, aesthetics is paramount, regardless of the details.
Type rarity: In 10,000 CryptoPunks, there are 9 aliens, 24 apes, 88 zombies, 3840 females and 6,039 males. Therefore, aliens are rarer than apes, apes are rarer than zombies, and so on, people trade accordingly. So, for example, if you see a strange-looking zombie sells more than 100 ETH more than a normal-looking “floor” man, there is indeed a reason.
Number of attributes: CryptoPunks can have 0 to 7 attributes, such as: small hat, headwear, high hat, or no accessories at all. For example, Punks with 0 attributes are really rare, as are Punks with 7 attributes, so these are considered special values.
Uniqueness of attributes: Just as some CryptoPunks types are more rare than others, CryptoPunks attributes also have different levels of rarity. The rarest attributes are caps, bow ties, and pilot helmets, with 44, 48, and 54 holders, respectively. Those who own these items can get corresponding rewards!
Get access to CryptoPunks strategy
If you do not purchase the nearly 20 ETH required by CryptoPunks, you can still access these signed NFTs in various ways. Below, we will outline the three easiest ways to gain this kind of exposure for your consideration.
1. NFTX PUNK vault token
NFTX is an NFT index fund project centered on NFT Treasury and its related liquidity provider (LP) Token. The flagship product of the project, $PUNK-BASIC, is the ERC20 representative of the base price CryptoPunks in the NFTX CryptoPunks vault. In this way, ~1$PUNK=~1 CryptoPunk can be redeemed accordingly.
So, suppose you just want to buy a little CryptoPunks every week until you fully pay for a whole one.
An easy way is to buy $PUNK on Sushi until you have 1 $PUNK-BASIC. In this sense, NFTX allows retail investors to invest in CryptoPunks at the speed they want, which is different from the way Coinbase invests in BTC.
2. CryptoPunks fragments
In the NFT ecosystem, one vertical area that gained considerable traction last year is NFT fragmentation games. By fragmentation, I mean dividing the NFT into hundreds or thousands of fragments through ERC20 tokens.
The big advantage of these fragments is that they allow more people to invest in NFTs, because a small amount of fragments is more affordable than the same NFT!
Therefore, another easy way to gain access to CryptoPunks is to purchase CryptoPunks fragments. Platforms that can be considered in this field are NIFTEX and Unicly. These Dapps have their own particularities, but they all allow users to divide their CryptoPunks into pieces.
3. Yam DAO uPUNKS synthesizer
Another compelling way to trade around the value of CryptoPunks is the new uPUNKs cooperation between the UMA agreement and Yam Finance’s Yam DAO.
Simply put, uPUNKs allow traders to short or long CryptoPunks at the median price of the past 30 days .
“With uPUNKS, it is possible to obtain the risks of the entire Crypto Punks market, including high-value works, without the need to purchase the entire NFT or bravely face the liquidity problems of the NFT market.” The Yam Synths team has already pointed out.
If you are interested in this opportunity, please remember that you need to provide WETH collateral to mint uPUNKs first. Also remember that the UMA and Yam teams are providing liquidity mining rewards to uPUNKs participants, so now you can go long or short Punks and earn UMA and YAM in the process.
to sum up
As one of the most iconic projects of Ethereum , CryptoPunks will continue to exist as a cultural artwork. However, it is not necessarily only the wealthy cryptocurrency OG that can use CryptoPunks funds.
Through the above three methods, almost any class of users in the encryption economy can enjoy the benefits of Punks.
Therefore, unlike the way some people trade things like corn and oil in TradFi, now we can easily trade CryptoPunks in a similar way with cryptocurrencies.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/how-to-play-cryptopunk/
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.