The last article talked about the blockchain star card launched by NBA Top Shot . Even if you are not a fan, you should understand why some people are willing to spend money to buy a virtual star card. NFT projects are diverse, some I can see the value, some feel like a pyramid scheme or consumer fan economy, but it may also be my shortsightedness. After all, until now, some people still say that Bitcoin is a Ponzi scheme.
NFT is the only evidence there is irreplaceable on the block chain, on the block chain is adding something Ethernet Square innovation ETH – The Intelligent contracts (Smart contract), the world’s first talk about today NFT project, Ethernet Square CryptoPunks on.
(Miami’s bulletin board in January 2021.3)
What is Cryptopunk?
In the summer of 2017, a software company named Larva Labs wrote a computer program to automatically generate avatars. This program generated a total of 10,000 different 24×24 pixel artistic avatars, and each avatar was randomly generated using artificial intelligence algorithms. They are generated and then artificially screened. For example, some wear sunglasses, some smoke e-cigarettes, some are double ponytails, and some are Mohicans. The style of painting is influenced by CyberPunk in the 70s.
2017 was a big bull market for Bitcoin. That year it rose 18 times, but the second-ranked Ether rose 50 times in the first half of the year. The two founders of Larva Labs pondered that instead of building a similar social application or mobile game on the market to compete with Facebook and Tencent, they might as well make a brand new thing. So they decided to combine these 10,000 punk avatars with the blockchain, but at that time even the ERC-721 standard of Ethereum had not been established. Larva Labs only took the hash value of the punk avatar (which can be understood as unlocking each avatar The key) was uploaded to the Ethereum blockchain, and Cryptopunks was born.
(A small part of the above screenshot, all punks can be seen on the Larva Labs official website)
When Cryptopunks was first born, not many people noticed that, just as the Ethereum bubble just burst, the price dropped from $420 to $130 per coin in just two months. Many investors have suffered heavy losses, and it is estimated that they don’t want to hear about Ethereum and smart contracts anymore in this life. Therefore, the two founders of Larva Labs decided to leave 1,000 avatars as project rewards, and all the remaining avatars were distributed to the Ethereum community free of charge. You only need to fill in your Ethereum wallet address on the official website and pay a few cents for the transportation fee ( Gas Fee) can be received.
Interestingly, no one took the free ones, and only a few hundred were taken away two weeks after the launch. Larva Labs went to the Mashable blogger to write a promotional article, and successfully distributed all the rest. And these 9,000 were distributed to hundreds of people in total. One person at the most claimed thousands of them, and there were several people who claimed more than 300. At that time, most people in the currency circle couldn’t understand the value of Cryptopunk. Why would an avatar that could be copied and pasted and downloaded at any time needed to be claimed/purchased. But as the blogger of the soft text said at the end, “Maybe one day, having a Punk is a status symbol, a certificate proving that you are an OG investor in the currency circle, or it may be just an ordinary picture.”
(Mashable: This ethereum-based project could change how we think about digital art)
The current state of Cryptopunk
It can be seen on the Larva Labs official website that the top ten Punk transactions totaled 25 million U.S. dollars (equivalent to 160 million yuan). From the Dapp industry report for the first quarter, we can also see Cryptopunk’s well-known influence in the NFT circle. And many of the following transactions took place in January and February this year. Recently, the market is hot and you have not bought the price a few months ago. For example, #3011, which was traded 3 days ago, created a new high for human Punk, the lowest price of punk this week. (Floor Punk) has also successfully surpassed the price of 1 Bitcoin ($55K), which is close to 60,000 U.S. dollars. The nine Punks that will be auctioned at Christie’s next month are estimated to create more records. The official estimated price is 9 million, but I think this price may not even be available for #635 aliens.
Let’s talk about how the punk avatars are distributed (relative valuation). The first is the distribution of races. There are 9 aliens, 24 orangutans, 88 zombies, and 9879 humans (including 3840 female avatars, 6039). Male avatars). Since non-human avatars are very rare (only 1.1%), it is not surprising that they dominate the top ten transactions. Aliens have sold two so far, both traded at a price of 4200 ETH ($7.6M), and now Ether has been up for $2700, which means that the same 4.2K ETH costs $11M.
There are many human Punks, most of which are distinguished/evaluated by uniqueness, such as how many attributes (Attributes), more than 5 characteristics, single characteristics, and no characteristics (also called origin Punk) are the most expensive. Only 2-4 features are the most common Punk.
In addition to the number of features, the beauty and rarity of features are also very important. Beanie is the rarest and most expensive feature, while choker is also rare but has no value (Tiara) or orange Hair (Orange Side) is high because the collar is contrary to the punk spirit. Although there are a lot of 3D glasses, they are very valuable because they look cool.
Now everyone has a general understanding of Cryptopunk. Although they don’t understand why they are so expensive, they can at least understand why some Punks sell for 7 million, and some can only sell for 50,000. The value of NBA star cards comes from the technical level of the stars themselves. The rarity of the star card, and Cryptopunks itself is a kind of collectible.
The value of CryptoPunks
Cryptopunks is a brand new application of Ethereum smart contracts. It is a pioneering NFT project. The 10,000 Punk avatars are purely virtual collections, and there is no copyright. Anyone can watch it anywhere on the Internet. Larva Labs, the project producer, has no subsequent influence on Cryptopunk. Now these 10,000 Punks are the only freely traded and decentralized objects that exist on Ethereum (in fact, there are only 9,999, and one of them was accidentally destroyed. NS).
In the past 6-9 months, cryptocurrency has ushered in another big bull market after 2017. In an environment where Bitcoin and Ether are accepted and used by more people, countless investors have flown into the currency circle one after another. How to prove that you are a whale in the currency circle has become a big problem for many OG investors. Except for the celebrities in the currency circle (like Li Xiaolai, Pomp) that are active in the news media, the easiest way is to buy a Punk as the profile picture of Twitter and Discord. Buying a virtual avatar for US dollars also shows from the side that this person has wealth and freedom, or has been in the currency circle a few years ago, or received Punk early, or holds a large amount of ETH.
2021 is the year of the NFT fire. Cryptopunk is a person’s anonymous business card. You only need to post the ether wallet. Everyone will naturally respect you, because it is easy to find out what NFT you hold and when you bought Punk. A casual look on Twitter shows that most of the people discussing NFT are Punk avatars, which have gradually become a new trend or cult.
Like early Bitcoins, people who own Bitcoin and those who don’t have Bitcoin can’t communicate, and people who own Punk won’t care about the opinions of people who don’t have Punk. Now some people laugh at people who spend tens of thousands of dollars on Punk’s avatars, just like people who laughed at selling houses and cars for Bitcoin a few years ago. But no one knows whether NFT or Punk will be the next “Bitcoin”, because there will be mispricing because of the unknown.
There is another interesting phenomenon, that is, the rare Punk has gradually become a star in the currency circle, and their Twitter followers have grown exponentially. Each Punk displays his own personal settings on the Internet, expresses his own opinions, and manages his own fans. Interacting with other “Punk stars”, some even started to write background stories for their Punk (manga will be released in the future).
The most famous in Punk circle is #4156 orangutan, whose Twitter account has tens of thousands of followers after only 2 months of registration. Not only did it attract the attention of NFT’s first painter, Beeple, he made a special painting for him. He also customized April 15 as “4156”, and received thousands of paintings inspired by #4156 Gorilla Punk that day. Yes, no one knows who he is, but it doesn’t matter.
Another obscure NBA star card collector, won the most common Sanmao Punk #447 in a lottery in March. After that, his Twitter views have increased exponentially. A few days ago he spent I bought a relatively rare Punk #5974 (VR, cowboy) for $220,000 as my avatar, and his influence in the future will also increase.
Owning a Punk is not only a symbol of OG status in the currency circle, but also a pass for high-end investors. Countless artists, painters, hipsters, wealthy people, investors are willing to be friends with you and understand your views. Buying Punk is like I opened an inn in the Great West of the U.S. Gold Rush to give advice and exchange information to gold prospectors who came to look for opportunities. You may lead people to discover the next gold mine, or you may get rich by selling jeans and shovel. Of course. , If you just spent 7.5 million to buy an alien, even if your opinion will not be written in the history book, it will be recorded by the media or bloggers and spread to more people. Every move of your wallet will be Be followed by countless people all over the world.
NFT Department Store
Let me first introduce OpenSea , NFT’s largest trading platform. You can trade most of the NFTs on the Ethereum chain on it. First register a Metamask Wallet small fox wallet (browser plug-in), and start trading by transferring Ether to the wallet from exchanges such as Coinbase/ Binance . The transaction uses ETH and the buyer pays the gas fee; bidding (bidding) uses WETH, Accept bidding sellers to pay for gas. You can see various NFT projects on OpenSea, or you can create projects yourself. All the price units on OpenSea are ETH, and trading NFT is to use Ether as currency in circulation.
Take Cryptopunks, a long-time leader, for example.His OpenSea homepage says that there are 10,000 Punks, 2,200 different owners (wallets), historical average transaction price 13.53 ETH, and total transaction volume 153.5K ETH (about 400 million US dollars). There are also official websites, Twitter, Discord links on the homepage. However, because Cryptopunk is relatively old and not on ERC-721, transactions generally occur directly on Larva Labs’s official website or the OpenSea page of Wrapped Cryptopunk (you can trade on ERC-721 only when you package Cryptopunk).
After the emergence of Cryptopunk, there are three more well-known OG collectibles NFT with a large transaction volume.
CryptoKitties is the first electronic pet on the blockchain. Like Cryptopunks, it is distinguished by different characteristics. It also adds a breeding function. Two first-generation cats can give birth to a second generation. After breeding, rare features have a certain probability of being passed to the next. generation. There are now 2 million different cats, and the ten most expensive cats are sold for a total of 2600 ETH (approximately 7 million U.S. dollars). The lower the generation, the more rare features and the more expensive (lower success rate). There is no limit to the total number of cats, depending on the “quality”. The first pot of gold for many NFT leaders is derived from breeding cats.
Hashmasks is another OG collection NFT. Its artistic style is more unique and enjoyable than Cryptopunk. It is made by more than 70 painters all over the world, and there are only 16,384 in total. Unlike Cryptopunk, each Hashmask comes with its own art and commercial copyright. If you need to use it, you need to obtain the permission of the owner. Hashmasks also uses the curve pricing used by most NFT projects. The earlier you participate in the project (early buyers), the cheaper the price. Hashmasks are distinguished by different species, skin colors, eyes, objects and masks. The most expensive Hashmask also sold for a sky-high price of 420 ETH in the secondary market. The recent NFT bear market coincided with March-April. Many Hashmasks were being sold at a low price, and the Floor price fell from 1.5 ETH to 0.7 ETH.
(In 2021.4, the bulletin board outside the Nasdaq exchange in Times Square, New York displayed the Hashmasks of the “Joker” mask)
Axie Infinity is the largest game project on Ethereum . This project builds a completely virtual game world on the basis of electronic pets. There are three main ways to play: pets are used to fight against others, and offspring are hatched through breeding (similar to cats) ), buy land to build houses and farms. There are more than 40,000 players all over the world, and the total transaction volume exceeds 27.5ETH (74 million U.S. dollars).
Punk derivative NFT
The success of Cryptopunk has led to the birth of many punk-derived NFTs, which are basically similar to the OG punk model (limited, rare). Many people can’t afford Cryptopunk (OG Punk), so they buy and sell cheap derivative Punk. The following is an example based on transaction volume.
Bastard Punk , Punk that is still in release, spend some ETH to mine (Mine) new Punk, color animation. Basically imitating Cryptopunks, the start time is relatively early, but recently it has not been popular, and the mining cost is too high. , No one is willing to dig a new Punk because of the sharp drop in trading volume.
PicassoPunk (Punk Punk), the most successful Punk-derived NFT project, the computer repaints 1000 Cryptopunks according to Picasso’s painting style. I saw his price take off. Originally, the first few hundred were only sold for 0.2ETH, and suddenly there was a big guy (whale) Or the start-up team bought more than 20 at one go, traded at a price of 1ETH, and directly rushed to the OpenSea’s 7-day trading volume rankings, and then it became popular. Every holder kept tacit understanding not to sell below 1ETH Hold the line, the price of each Punk will go up. Many people (including OG Punk owners and e-sports stars) have also participated in it. Buying a few prints and hanging them at home is also a good decoration.
3D Punk is another project recognized by OG Punk holders. It has a relatively high appearance and the price is still acceptable compared to Cryptopunk. Unfortunately, the number is only 100, and the project is now over.
Fine Art Punk is also a relatively early Punk derivative project. It was a female painter who painted 10,000 Cryptopunks. It was completely pioneering. It relied on personal hardcore painting skills to increase the artistic value of Punk. Unfortunately, there is no publicity, and it has not been promoted until now. Officially recognized by Opensea (verified). She was the first to re-understand Punk in an artistic way, and even the Picasso Punk, which went online a few weeks later, was modeled after her (the first Punk is almost the same, and suspected of plagiarism). Later, Van Gogh Punk, Da Vinci Punk, and Monet Punk follow suit even more, basically just adding a filter to Punk and making money.
Finally, Cryptobaby Punk , which suddenly went viral last weekend , did not know why OG punk holders started robbing baby punk. It felt like adopting a son or daughter. It traded 160 ETH (430,000 US dollars) in two days last weekend.
Other collectibles NFT also have derivatives, and derivative collectibles NFT account for a certain share in the collectible category. Now Picasso Punk is higher than Hashmasks’ floor, which also proves that derivative collectibles are not necessarily worse than original collectibles. Which project can be used in the long-term No one knows about the preservation of value, but Cryptopunk is undoubtedly the king of collectible NFT and all NFT projects, and has the most investment value in the long run.
After the CryptoPunks project ended, Larva Labs launched a second project in April 2019: Autoglyphs. This is the world’s first derivative art (on chain) that exists entirely on the Ethereum chain. CryptoPunks is due to the original file size being too large. , Only its hash value is freely traded on the chain, so it is not completely on chain.
(Autoglyph #233 The highest selling price is 155ETH 420,000 US dollars)
Art is difficult to value, let alone painting by computer algorithms. But the total sales of the top ten are still close to 1,200 ETH (3.25 million US dollars). You must know that at the beginning of the project, each painting can be claimed as long as 0.2 ETH, and the average market price has doubled the cost price by hundreds of times, not counting the increase in ETH itself ($160 to $2700) from 2019 to the present.
Produced by Larva Labs , it must be a boutique product , has been imitated and never surpassed. Recently, there are rumors that Larva Labs is preparing to launch the third NFT project, and friends who are interested can prepare ETH first.
Spending millions of dollars to buy a 2D avatar image may be the most typical “peak moment” and “prodigal case” before the burst of the Bitcoin bubble, but it was indeed bought on the Ethereum blockchain. The rarest and most valuable collectibles. If you have made a lot of money on Ethereum in the past few years, you continue to be optimistic about the future of Ethereum smart contracts. Only by having a “legendary” avatar can you be worthy of your Whale status, even if it’s just a The Mavericks can also buy an ordinary Punk head as a high-end business card to prove their OG identity.
Now most people agree that Ethereum has a wide range of application prospects, especially the second-generation Ethereum (Layer 2) will greatly reduce the gas fee. The world’s first NFT on Ethereum can maintain and appreciate for a long time. It has unique features and Extreme scarcity makes its value difficult to estimate. If the Ethereum plummets in the future, I don’t mind buying a Punk as a collection.
The author of this article Jason Lu
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/the-blockchain-business-card-of-the-nft-trilogy-cryptopunks/
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