Dear Bankless Community:
Dear Bankless Community:
CryptoPunks is one of the OG NFTs on Ethereum.
This past spring, something historic happened. Christie’s, one of the largest traditional auction houses in the world, has announced the sale of 8 CryptoPunks. The lot sold for $17 million.
While these are some of the most expensive on the market, Punks don't come cheap. period. The current reserve price for one CryptoPunk is 17.5 ETH - about $40,000 at today's prices! But these are just pixelated jpegs.
But these are just pixelated jpegs. Why would anyone pay tens of thousands of dollars (or millions) for one?
As we discuss in this week's podcast, it comes down to the desire to imitate. CryptoPunks have a history -- they're artifacts of the internet and crypto culture -- which made people want them, which made more people want them, and so on.
Here's the part where I talk about how much I want one. So do you want one?
Is there a way to own the benefits of CryptoPunks without paying $40,000? Yes, there is.
Here's how to get a part of the cryptocurrency culture.
- RSA
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How to Reach CryptoPunks
CryptoPunks is one of the most exciting and storied non-fungible token (NFT) projects in cryptocurrency. As one of the OG NFT projects on Ethereum,CryptoPunks has also grown to become one of the most expensive projects in the ecosystem. For many, owning a Cryptopunk is out of reach. Fortunately, there are some ways around this problem.
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Target:intermediate
Skill:intermediate
effort:ROI:
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Why Cryptopunks Matter
The image below is CryptoPunk #2. Not only is she a beauty, she's also the third CryptoPunk ever. She and eight other CryptoPunks were auctioned off earlier this year for $16.9 million through Christie's, one of the world's leading auction houses.
How did this become mainstream?
Three years ago, Christie's auction house looked down on NFT at all. So the fact that the auction house and its biggest competitor, Sotheby's, have gone crazy for CryptoPunks lately suggests that,How quickly the landscape is changing in and around the NFT ecosystem。
In other words, CryptoPunks not only inspired the ERC721-style NFT standard, but set the trend. The project has now become a leading NFT force with influence not only in the Ethereum space, but also in the wider cultural environment of the roaring 2020s.
All that said, CryptoPunks aren't cheap right now. Everyone wants one. According to the Larva Labs marketplace, the cheapest Punk right now sells for around 17.5 ETH (around $38,500 at press time).
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Estimating the Value of Cryptopunks 101
Etheria is arguably the first proper NFT project on Ethereum. However, it was CryptoPunks that popularized the ERC721 standard and continues to be the consensus"OG "NFT projects.
That's why we've had superstars like Jay-Z buying CryptoPunks lately. why? Because ethereum is interesting and holds opportunity, andOne of the most profound and fun things you can do on Ethereum is buy a CryptoPunk。
It's part of the internet and cryptocurrency culture!
So, punk up or shut up, right?
It doesn't have to be that black and white. Even if you're a retail investor, there are ways to capitalize on Crytopunk. Before we discuss these strategies, it's good to cover the fundamentals so we know what we're dealing with.
When it comes to valuing Cryptopunk, some key things to keep in mind include.
Subjectivity, subjectivity, subjectivity:Many people just want a punk that looks a little bit like themselves, so orthogonal to price, they're looking for the look. So remember, to some extent aesthetics reign supreme, regardless of the details.
Type of rarity:Among the 10,000 CryptoPunks, there are 9 aliens, 24 apes, 88 zombies, 3840 females and 6039 males. So aliens are rarer than apes, apes are rarer than zombies, etc., and people trade accordingly. So, for example, if you see a weird-looking zombie than a normal-looking"floor"There is indeed a reason for men to sell more than 100 ETH.
Number of attributes:CryptoPunks can have 0 to 7 attributes, for example: hats, headgear, top hats, or no accessories at all. For example, 0 stat punks are really rare, as are 7 stat punks, so these are considered special values.
Uniqueness of attributes:Just like some CryptoPunks types are rarer than others, CryptoPunks attributes come in different rarities. The rarest attributes are the cap, bow tie, and pilot helmet, with 44, 48, and 54 holders respectively. Punks who own these items can get corresponding rewards!
Strategies for getting exposure to CryptoPunks
If you don’t have the nearly 20 ETH required to buy CryptoPunks, you can still get your hands on these signed NFTs in a variety of different ways. Below, we outline three of the easiest paths to gaining this exposure for your consideration.
1. NFTX PUNK Vault Tokens
NFTX is an NFT index fund project centered on NFT treasury and its related liquidity provider (LP) Token. The project's flagship product, $PUNK-BASIC, is the ERC20 representation of the base price CryptoPunks in the NFTX CryptoPunks Vault, such that ~1 $PUNK = ~1 CryptoPunk, and can be redeemed accordingly.
So let's say you just want to buy a few CryptoPunks every week until you've fully paid for a whole one.
An easy way is by buying $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, unlike the way Coinbase invests in BTC.
2. CryptoPunks Fragments
In the NFT ecosystem, one vertical that has gained considerable traction in the last year is NFT fragmentation games. By sharding, I mean splitting the NFT into hundreds or thousands of shards via ERC20 tokens.
One of the big benefits of these shards is that they allow more people to invest in choosing NFTs, since a small number of shards is more affordable than the same NFT!
So another easy way to gain exposure to CryptoPunks is to buy Fragments of CryptoPunks. Platforms that can be considered in this area are NIFTEX and Unicly. These Dapps have their specificities, but all allow users to split their CryptoPunks into pieces.
3. Yam DAO uPUNKS Synthesizer
Another compelling way to trade around the value of CryptoPunks right now is the new uPUNKs collaboration between UMA Protocol and Yam Finance’s Yam DAO.
Simply put, uPUNKs lets traders go short or long at the median price of CryptoPunks over the past 30 days.
"With uPUNKS, it is possible to gain exposure to the entire Crypto Punks market, including high-value works, without the need to purchase entire NFTs or brave the liquidity issues of the NFT market."The Yam Synths team has pointed it out.
Summarize
Summarize
As one of Ethereum's most iconic projects, CryptoPunks live on as cultural artifacts. However, it doesn’t have to be just wealthy crypto OGs who can take advantage of CryptoPunks’ funds.
Through the above three methods, the benefits of Punks can be enjoyed by users of almost any class in the crypto economy.
So unlike how some people trade things like corn and oil in TradFi, now we can easily trade CryptoPunks in a similar fashion with cryptocurrencies 😎.
Original link: https://newsletter.banklesshq.com/p/how-to-get-exposure-to-cryptopunks
Edited by Vivian
Translated by Mike Jin
Edited by Vivian
