Does The Fall Of CryptoPunk Signify The Death Of NFT?

CryptoPunk, a non-fungible token (NFT) issued by Larva Labs in mid-2017 as part of a set of 10,000 produced by computer—largely at random—was part of one of the early and best-known collections that ignited the frenzy around digital collectibles. With the exception of the Bored Ape Yacht Club, these NFTs are “inspired by the London punk scenes, the cyberpunk movement, and electronic music artists Daft Punk,” according to the business (BAYC).

The NFT changed hands on Sunday for slightly under $139,000, according to CryptoPunks Bot, a Twitter account that updates on the latest bids and transactions. It had previously traded for $1.03 million in October. Except for the loss from a depreciation in the value of ether, the seller lost approximately 80% of the value of the investment in constant currency terms, taking just 55 ether for an NFT that the individual spent 265 ether for only seven months before—a astounding loss.

Now, CryptoPunk #273 might be an exception, not representative of more sought-after CryptoPunks. Clothing, haircut, and cosmetics are all factors that influence their worth. These distinct characteristics are used to establish a CryptoPunk’s rarity within the larger collection.

Yuga Labs, the company that created the Bored Apes, has purchased the intellectual property rights to the collection, as well as Larva’s other product, the Meebits, for an unknown fee, vowing to allow unrestricted commercial usage.  Data points like CryptoPunk #273 show that the firm, which is financed by venture capitalists Andreessen Horowitz and run by CEO Nicole Muniz and partner Guy Oseary on behalf of two previously unidentified males, may have more difficulties earning a profit than projected.

After a year of buzz in 2021, questions has recently surfaced regarding whether interest in NFTs is waning. According to a report released in the Wall Street Journal by NonFungible, the number of active wallets has dropped by 88 percent.