Up to 7 million euros for a picture that only exists on your computer? The CryptoPunks are a particularly curious case of Non Fungible Tokens (NFTs).
Word has spread that so-called Non Fungible Tokens (NFTs) can fetch a lot of money. Often because they stand for something special or come from a special person. At first glance, the CryptoPunks are not one of them. atechbook explains why the virtual art is nevertheless so expensive.
What do buyers of the NFT get
The CryptoPunks are a total of 10,000 small images of fantasy creatures in a resolution of 24 x 24 pixels. They are referred to as crypto art. Only one head can be seen at a time. The company Larva Labs set up the CryptoPunks back in 2017. This makes them one of the first NFTs. Each image is unique and can either be held or resold by the buyer. Payment is made in the cryptocurrency Etherium. This is the second most popular after Bitcoin. Depending on the exchange rate, the value in euros or dollars therefore also fluctuates. The most expensive crypto Punks NFT (Punk number 7804) was bought by someone for 4200 Etherium. Currently, that would be equivalent to over 11 million euros. As recently as March, the Etherium price was much lower and the NFT was also “only” worth around 6 million euros back then. Whoever buys it next will probably have to put down more Etherium. So the seller is making a tidy profit.
Also interesting: what are NFTs and what do they have to do with crypto?
Why are the CryptoPunks so valuable?
First of all, this is art. Justifying prices is always difficult in this field. But in 2017, the 10,000 images were still given out for free to interested parties. What has happened since then can probably also be justified by the hype surrounding cryptocurrencies like Bitcoin. Crypto art has now become so mainstream that it is even being auctioned off at the renowned auction house “Christies” in London. There, a package of nine CryptoPunks changed hands for the equivalent of $17 million.
However, not only large auctions take place. Individual CryptoPunks NFTs are sold and bought all the time. A Twitter page tweets every sale and bid.
– CryptoPunks Bot (@cryptopunksbot) August 9, 2021
For the average wage earner, however, the CryptoPunks are probably no longer really affordable. The prices have literally exploded. It certainly remains exciting whether this is a bubble or whether the market will remain stable.