What are CryptoPunks and did one sell for $530million?

CELEBRITIES have begun releasing non-fungible tokens (NFT) in order to create digital collectibles on the crypto market.

Snoop Dogg, Odell Beckham and Jay Z are just of some of those to have created the so-called CryptoPunks. But what are the digitization’s and how much are they really going for? Here’s what you need to know.

RexThere has been a rise in the number of non-fungible tokens on the markets[/caption]

What are CryptoPunks?

Cryptopunks are algorithmically generated characters in a small pixel art frame.

Created in 2017 by Lava Labs, they were among the first NFT collectibles sold on Ethereum’s transaction tracking blockchain.

These collectibles are pixelated characters. Most are human-like, but some are aliens, apes and zombies – to name a few.

Although each CryptoPunk is different, non-human digitization’s sell for more due to their scarcity.

The chips are also unique became they are non -fungible – meaning that they can’t be traded for one another like fungible tokens Bitcoin and Ethereum.

How can I buy a CryptoPunk?

According to Benzinga.com, there are three steps you need to take in order to buy a Cryptopunk.

1. Buy Ethereum (ETH)

Given that non-fungible tokens are still in early development, you can’t go onto an exchange and purchase them just yet.

Instead, you’ll need to purchase NFTs with Ether, the native token on Ethereum’s blockchain.

Platforms that offer Ether are Coinbase, eToro and Gemini, according to Behzinga.

Once you own enough Ether to purchase your punk, you’ll need to transfer your funds to an Ethereum wallet

2. Buy or download a wallet

“To purchase a CryptoPunk, you’ll need to connect a software wallet to Larva Lab’s website,” Behzingha says.

“The most commonly used software wallet is Metamask, as its Google Chrome extension makes it easy to interact with websites that transact in cryptocurrency.

“If you want to hold your NFTs safely, you should keep them in an Ethereum wallet.”

3. Buy a piece from the collection.

There are currently 10,000 CryptoPunks on Ethereum’s blockchain, reports suggest.

Consequentially, if you want to buy a CryptoPunk you’ll need to purchase it from someone who already owns the collectible.

Bezinha suggests: “To do so, go to Larva Lab’s website and view the CryptoPunks listed for sale, and the prices for these collectibles range from around 90 Ether to thousands of Ethereum.

“You then need to purchase a listing using cryptocurrency in your Ethereum wallet. Some listings you can purchase automatically, but others accept offers and don’t have a set purchase price.

“ If the seller accepts your bid, the transaction will be processed through Ethereum’s blockchain and the NFT will be sent to your Ethereum wallet.”

Crytopunks come in unique digitalisations

What have CryptoPunks previously sold for?

At the time of writing, the average price paid for a CryptoPunk is around $400,000.

But, being as scarce and sought-after as they are, Cryptopunks are extremely expensive digital collectibles.

On October 29, 2021, it was reported that a CryptoPunk NFT sold for a staggering $530 million – making it the most expressive NFT ever.

However, Cnet reports that it most likely cost a lot less then that due to a clever transaction method called flash loans.