Creators of CryptoPunks Apologize for ‘V1’ Ethereum NFT Sales

Bengaluru, February 5, 2022: Several believe Larva Labs’ CryptoPunks to have been the gold standard of Ethereum NFT profile images, with the collection selling for billions of dollars as Crypto Twitter’s favoured status indicator. Unfortunately, recent events have caused its star to fade, and so now Larva Labs is being scrutinised again for its own acts.

A flaw in the original smart contract, the code which runs NFT collections as well as decentralised applications, forced Larva Labs to discard the first edition as well as reissue the NFTs in 2017. According to CryptoSlam, the second version became crypto-famous, including over $2 billion in trading volume so far.

A few of the “V1 CryptoPunks” NFTs, though, have been “wrapped” as well as reissued as ERC-721 Ethereum tokens, each with its own different backdrop colour from the standard Punks, thanks to a community-created smart contract. As a result, the NFTs can be sold as historical antiques, with interest as well as rising prices recently.

The unofficial V1 Punks website states, “This recovery of the original Punks smart contract is a community-led and rapidly-growing phenomena consisting of original Punk claimants, NFT historians, digital archaeologists, and exceptionally brilliant engineers.”

Larva Labs subsequently went on the attack, claiming that the CryptoPunks NFTs were not “genuine.” The producers, on the other hand, were giving confusing signals, selling hundreds of their own V1 Punks while saying that they weren’t authentic CryptoPunks.

On January 25, Larva Labs tweeted, “PSA: ‘V1 Punks’ are not official CryptoPunks.” “We don’t care for them, yet we have 1,000 of them… take your own conclusions.” Any money raised will be used to buy real CryptoPunks!”

Matt Hall, co-founder of Larva Labs, apologised for selling the company’s own V1 Punks in a statement issued to the official Larva Labs discord on Wednesday, labeling the move “wrong” as well as a “bad decision.”

When it came to wrapping as well as selling the V1 CryptoPunks, Hall commented, “We made a mistake by dealing with this contract.” “We reasoned that by disclosing our plans and selling some of the tokens, we would send a message to others that we didn’t like it.” That was a poor choice. We’re sorry for that, and we’d like to apologise to the community.”

Larva Labs made 210 ETH ($622,000 today) from the V1 NFT sales, according to Hall, and then used some of that to buy one of the standard (V2) CryptoPunks. The balance of the proceeds would be used to buy back more CryptoPunks NFTs, with the team matching the amount with a 210 ETH donation to The Rainforest Foundation.

“We feel that we’ve taken a philosophical approach to the CryptoPunks project from the start until the moment we did this foolish thing,” Hall continued. “We’ve learnt a painful lesson, but we’re hoping that through this contribution, something good can come of it.”

Why CryptoPunks Collapsed?

Larva Labs’ statement drew a lot of harsh feedback. As the community considers their position in the emerging NFT field, what usefulness (if any) they must provide, and also what role Larva Labs should play in their future, this is a rising tendency among certain holders of the 10,000 CryptoPunks NFTs.

Some CryptoPunks owners have expressed dissatisfaction with the project’s current form in recent months, particularly the still-uncertain extent to which owners can monetize their own picture (s). Other objections have been made about Larva Labs’ growing hands-off approach, which contrasts sharply with several newer, famous profile picture (PFP) ventures.

The Bored Ape Yacht Club (BAYC) has quickly established itself as the other major player in the NFT market, with considerable differences.

Holders of the Bored Ape could use their photos for anything they choose, including products, metaverse bands, as well as brand marketing, and Yuga Labs has given them extra free NFTs, unique stuff, as well as events, among other things. It’s a private club with all the bells and whistles, not to mention a public-facing avatar for social media cachet.

Celebrities had already recently flocked to the Bored Ape Yacht Club, enhancing the NFTs’ profile—and, more importantly, their asking price. Bored Apes’ floor price (or cheapest available NFT) surpassed CryptoPunks’ for the very first time in December, as the gap has only grown since then.

About CryptoPunks

The Ethereum blockchain stores proof of ownership for 10,000 distinct collectible characters. The initiative that gave birth to today’s CryptoArt movement. In 2018, Mashable, CNBC, The Financial Times, Bloomberg, MarketWatch, The Paris Review, Salon, The Outline, BreakerMag, Christie’s of London, Art|Basel, The PBS NewsHour, as well as the New York Times were among the publications and appearances.

In 2021, Mashable, CNBC, The Financial Times, Bloomberg, MarketWatch, The Paris Review, Salon, The Outline, BreakerMag, Christie’s of London, Art|Basel, The PBS The Cryptopunks were among the first “Non-Fungible Tokens” on Ethereum, as well as the ERC-721 standard that enables most visual art as well as collectibles was inspired by them.

Originally, anyone with an Ethereum wallet could claim them for free, but all 10,000 were immediately grabbed. They should now be bought from a third party through the blockchain-based marketplace. This market allows you to buy, sell, and trade punks. Punks with such a blue backdrop are not for sale, and also no bids are currently being accepted. The owner of the red-background punks is looking to sell them. Finally, punks with such a purple backdrop are the subject of an active bid.

What Are The CryptoPunks V1?

LarvaLabs released 10.000 CryptoPunks V1 in 2017, pre-history for the NFT sector. The governing smart contract, unfortunately, made a grave error. It permitted the purchaser, not the seller, access and withdraw the funds after a transaction. The purchaser may have his or her cake and eat it too, putting the seller in the red.