The intellectual property (IP) of the iconic CryptoPunks non-fungible token (NFT) collection has been acquired by the Infinite Node Foundation (NODE), a newly established nonprofit dedicated to digital art. The acquisition, announced by NODE on May 13, marks a significant shift in the ownership and future direction of one of the most influential NFT projects in the digital art space.
NODE stated that this acquisition, coupled with a $25 million endowment, positions it as “the most well-capitalized nonprofit dedicated solely to digital art in the United States.” The financial terms of the deal with Yuga Labs, the previous owner of the CryptoPunks IP, were not disclosed.
To oversee the future of the CryptoPunks collection, NODE has assembled an advisory board comprising key figures, including Matt Hall and John Watkinson, the original artists behind the algorithmically generated pixel art characters. A representative from Yuga Labs will also serve on the board, ensuring continuity and collaboration.
“Our role is to build a networked architecture that allows digital art like CryptoPunks to thrive within both digital and art-historical canons,” NODE explained in a statement. The foundation aims to foster the growth and recognition of digital art within both the digital realm and traditional art history.
Launched in 2017 by Larva Labs, co-founded by Hall and Watkinson, CryptoPunks is hailed by NODE as a collection that “changed the art world by existing outside of it and sparked a cultural shift that continues to reshape our digital world.” With a total market capitalization nearing $1.2 billion across its 10,000 unique NFTs as of May 13, according to CoinGecko data, it remains the most valuable NFT collection.
Since its inception, the CryptoPunks collection has generated over $3 billion in sales, with each subsequent sale triggering royalty payments to the IP holders. In 2022, the highest-selling CryptoPunk NFT fetched nearly $24 million.
Yuga Labs, the company behind the popular Bored Ape Yacht Club NFT collection, acquired the CryptoPunks IP in 2022. Yuga Labs had also acquired another Larva Labs NFT collection, Meebits, before selling its IP in February. Notably, Yuga Labs recently announced the closure of a US Securities and Exchange Commission (SEC) investigation into the company, which it hailed as “a huge win for NFTs.”
The acquisition of CryptoPunks IP by the Infinite Node Foundation signals a new chapter for the pioneering NFT collection, placing its future in the hands of a nonprofit dedicated to its preservation and promotion within the broader art world.