The NFT model, which lets users buy and sell digital goods on the internet using blockchain technology, has boomed in the last few years. For the first time in the history of humanity, we have come up with a way to let people own bits and pieces of goods on the internet. An NFT, which stands for a Non-Fungible Token, is a unique digital asset that can be designed in such a way as to facilitate its ownership virtually. While NFTs can be bought and sold with cryptocurrencies, they can’t be exchanged for other NFTs like BTC or ETH. Following the NFT craze in recent times, big players like VISA have also jumped into the market, becoming one of the biggest companies in the world to actually dip their toes into the so-called fad.

Evolution of NFTs: Culture, Utility and Regulation

What are CryptoPunks?

CryptoPunks was first released in June 2017 as one of the first forms of NFTs that found their existence on the blockchain. They seem to be animated characters that were inspired by London punk scenes and the CryptoPunk movement. They are a new form of crypto art that is famously getting more and more popular and attracting huge prices from institutional investors. 

According to sources, there are only 10,000 known CryptoPunks that were designed previously. These are all made digitally scarce through blockchain technology. Because no two characters look alike, each one of them holds some intrinsic value. Some traits on these CryptoPunks are rare, making them sell for more than others. They were initially released for free and could be claimed by anyone who held a crypto wallet. However, with the rise in the NFT market and the gradually increasing acceptance of blockchain technology, they have skyrocketed in value because, interestingly, there will never be more than 10,000 CryptoPunks. This collection of 10,000 characters is definite and unalterable, so it is impossible to drive down their value in the market by increasing supply.

✨#NFT Fun Fact of The Day✨
Today, #Cryptopunks are worth millions of dollars! But did you know that the first Cryptopunks were given away for FREE to anyone with an eth wallet? You never know what will be the next big thing.😉 pic.twitter.com/0k07L1AYeg

— Mintable (@mintable_app) May 24, 2022

Significance

Even beyond the historical significance in punk culture, CryptoPunks has become a valuable collectible in the NFT market. Their intrinsic values have been enhanced tremendously by the rarities of certain traits and certain kinds of characters. Most of the 10,000 CryptoPunks are humans, but some are aliens, zombies, and apes.

The official ownership of CryptoPunks is carefully outlined on a contract that is publicly accessible on the Ethereum blockchain for everyone to see. The ownership of every single one of these artworks is meticulously tracked, and experts say that technically, one person or entity could only own one CryptoPunk officially.

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VISA bought CryptoPunk

VISA, the payments processing giant, bought CryptoPunk, which is one out of thousands of NFT-based digital avatars for close to $150,000 in Ethereum. Proponents of the NFT craze say that this situation drives up the intrinsic value of the NFT model by giving it proof of concept. Proponents also say that this drives the value of NFTs and puts them above other comparable physical collectibles like trading cards and works of art in terms of value.