Author: Zen, PANews
The original NFT CryptoPunks has officially changed hands again after being sold to the developers of Bored Ape Yacht Club (BAYC), Yuga Labs.
On the evening of May 13, the iconic NFT and crypto art piece CryptoPunks officially changed hands—acquired by a foundation named Infinite Node (referred to as 'NODE') from Yuga Labs. Although the terms of the deal have not been disclosed, media reports (NFT Now) citing multiple insiders indicate that NODE paid approximately $20 million for this acquisition. Following this news, the floor price of CryptoPunks rose from 42 ETH to 47.5 ETH.
CryptoPunks and its new 'home' NODE
The "father of NFTs" CryptoPunks was launched by Larva Labs in 2017 and is widely regarded as a catalyst for the modern digital art movement. Larva Labs is a creative technology company founded by Matt Hall and John Watkinson. Thanks to the significant meaning and far-reaching impact of CryptoPunks, which has achieved over $3.07 billion in total sales, these two creators have become some of the best-selling living artists.
In March 2022, Larva Labs transferred the intellectual property of CryptoPunks and another work, Meebits, to Yuga Labs. Three years later, CryptoPunks changed hands again, settling in its new home, NODE.
Yuga co-founder Wylie Aronow (also known as "Gordon Goner") commented: "We have always been committed to enhancing and protecting their cultural heritage, but we always understood that Punks needed a permanent home to carry on. Seeing this vision realized with the help of the Node Foundation feels like returning to the starting point. They are the most capable of protecting the cultural heritage of Punks."
The NODE Foundation, founded by Ribbit Capital founders Micky Malka and Becky Kleiner, is a non-profit organization dedicated to the preservation, research, and exhibition of digital art. Its aim is to elevate the status of internet-native art works and integrate them into broader cultural and academic discussions.
In April this year, the NODE Foundation announced it had received $25 million in funding from Malka and Kleiner to advance its vision for the future of digital art. The organization describes itself as a "perpetual fund driven by mission" and stated that this acquisition "opens up a new model for protecting internet-native culture."
Clearing the path for art mainstream
Even though the sales of CryptoPunks have surpassed all living contemporary artists, it has never made it onto traditional art rankings or entered mainstream discourse. NODE believes that solving this cultural gap requires redefining the experience of digital art.
Our goal is to build a networked architecture that allows digital art such as CryptoPunks to thrive in the digital realm and be incorporated into the grand narrative of art history. NODE represents a commitment to continuing and promoting the Punk spirit, achieved through three main pillars:
Preservation: Relying on advanced blockchain infrastructure to ensure the technical integrity and long-term availability of CryptoPunks;
Community: Building a vibrant ecosystem connecting digital innovators and art enthusiasts;
Expansion: Creating new scenarios where CryptoPunks can be both a model of technological innovation and a subject of artistic achievement for research and display.
NODE plans to build a permanent exhibition hall in Palo Alto to showcase all 10,000 CryptoPunks. The exhibition will also run an Ethereum full node to enhance the accessibility and permanence of the collection. Micky Malka stated: "Through museum-level preservation methods and a perpetual donation fund, we aim to establish future-oriented guarantees for this milestone work and make it easier for scholars, curators, and collectors to interact with it."
To achieve the above goals, NODE has formed an advisory board composed of well-known figures from the CryptoPunks community and crypto art, including Matt Hall and John Watkinson, Wylie Aronow, and Art Blocks founder Erick Calderon (also known as "Snowfro"). During the transition period, Natalie Stone will be hired as an advisor for the NODE team, responsible for project management.
Guarding cultural fundamentalism
After the acquisition announcement, the community generally interpreted it as good news. Consequently, the floor price of CryptoPunks rose from 42 ETH to 47.5 ETH.
"This is undoubtedly good news for punks," CryptoPunks holder @VonMises14 expressed high praise for this acquisition, believing that "this means the punks IP has found its 'final destination', where it can grow and thrive without any form of monetization or corruption."
Due to the individual blue-chip NFT 'self-destructing' and CryptoPunks having nearly faced 'contamination', the Punks community is particularly concerned about brand value and cultural purity.
A year ago, Yuga Labs launched the Super Punk World NFT series based on CryptoPunks, which faced strong opposition and criticism from the community. Most believed that the excessive "woke culture" displayed by Super Punk World severely deviated from the core of the original punk work, with many outright stating that Yuga Labs was destroying Punks. After strong opposition, Yuga Labs co-founder Greg Solano immediately stated: "We will no longer touch CryptoPunks, only to decentralize it and keep it on the blockchain," and mentioned plans to support museums and institutions in acquiring it to promote the original work to the public.
However, protecting the cultural value of CryptoPunks as art may require controlling how it is used, replicated, or monetized. As lawyer @jabranthelawyer, who focuses on the Web3 field, pointed out: "If NODE follows traditional 'cultural protection strategies', it is easy to imagine new restrictions: Will the freedom of punk commercialization be reduced? Will control over derivative projects become stricter? Will there be limitations in the name of 'cultural integrity'?"
Yuga Labs immediately granted IP usage rights and commercialization licenses to NFT holders after acquiring CryptoPunks, allowing them to create, showcase, and monetize freely on personal and commercial levels. It remains unknown whether NODE will retain these commercial rights after this acquisition.
That being said, this may not be the primary concern for the punk community; for them, perhaps not stirring things up is the best choice.
