What Are The CryptoPunks V1? And, How Can They Disrupt The Market?

Are the CryptoPunks V1 the original CryptoPunks? Technically, yes. According to LarvaLabs, the company behind the collection, the V1s “are not official Cryptopunks,” though. How will the market react now that they’re making a resurgence? This might be the first, but it’s not the last time you’ll hear about the CryptoPunks V1. Let’s explore their history and the controversy around them.

Related Reading | Snoop Dogg Joins The Bored Ape Yacht Club And The Sandbox. Read All About It

What Are The CryptoPunks V1?

Back in 2017, prehistory for the NFT market, LarvaLabs distributed 10.000 CryptoPunks V1. However, there was a fatal mistake in the governing smart contract. After a transaction, it allowed the buyer, not the seller, to withdraw the money. The buyer could literally have its cake and eat it too, leaving the seller completely in the red. 

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Here’s a thread explaining the technical details of the faulty contract:

What did LarvaLabs do? They disowned the original series and started again. They gave away another set of 10.000 CryptoPunks, the V2, and the rest is history. The almost free collectibles gained traction little by little and became the behemoth they’re today. All of the CryptoPunks in circulation were  V2s, until now…

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A Rebel Marketplace Arises

The CryptoPunks V1s still exist, but they had no marketplace to commerce in because Open Sea banned them. However, a new platform came into town and allowed them to reappear. This time, they’re called Classic Punks or Wrapped CryptoPunks V1, because to be able to sell them you have to wrap them in a new smart contract that doesn’t have the know vulnerabilities of the original contract.

The rebel marketplace is LooksRare.org and, so far, these up-and-coming NFTs have made 307.44 ETH in sales. Not bad, considering there are only 116 holders and LarvaLabs owns at least 1000. In LooksRare, only 23 owners are selling 269 items, so they’re pretty rare. The marketplace describes them as:

“A wrapped CryptoPunk from the initial exploited V1 contract version. Buyer beware – if you don’t understand the preceding sentence, this is not the CryptoPunk you’re looking for.”

Another buyer beware has to be, that low number of holders means that a few people have control of the market and can potentially manipulate it as they see fit. So, tread lightly. 

ETHUSD price chart for 02/04/2022 - TradingView

ETH price chart for 02/04/2022 on Kraken | Source: ETH/USD on TradingView.com

LarvaLabs Disowns The CryptoPunks V1

Through their public channels, the only thing LarvaLabs said was: “PSA: “V1 Punks” are not official Cryptopunks. We don’t like them, and we’ve got 1,000 of them… so draw your own conclusions. Any proceeds will be used to purchase real Cryptopunks!”

However, in the company’s official Discord channel, they are threatening legal action. They also admitted that they sold a bunch of CryptoPunks V1 because they thought that by “selling some of the tokens we would signal our distaste for it.” According to LarvaLabs, they’ve been using the 210 ETH that they received to buy V2 CryptoPunks. And they matched that amount and made a donation to the Rainforest Foundation. 

Here’s trader extraordinaire and crypto influencer Cobie explaining the situation:

As he puts it, “they dumped on people and now they’re trying to make what they dumped as worthless as possible.” Real people paid those 210 ETH. Why do they have to suffer? However, they might end up with the upper hand. LarvaLabs can use all the legal tricks that they want, but they can’t destroy the CryptoPunks V1 contract. 

The Intricacies Of The V1 Contract

As this pseudonymous Twitter user puts it, “my understanding is the contract code is permanent – you can only update a contract post deployment by calling the selfdestruct() function, if there is one. A function which neither of the two Crytopunk contracts have!”

Not only that, there’s another way to destroy a contract, and here’s where the big reveal comes. “Because of ETH’s extortionate storage costs, most use external forms of storage (punks are off-chain art!). In layman’s, contracts essentially include a link to specific reference point, which contains the image. LarvaLabs cannot do that with v1 punks because, both their v1 and v2 contracts point to the same file!”

Oh, what a tangled web we weave!

And that’s the story of the CryptoPunks V1.

Related Reading | Will NFTs Kill Traditional Art? Famed Collector Cozomo de’ Medici Makes The Case

The CryptoPunks V2 Market

According to NFT Stats, “The total sales volume for CryptoPunks was $41.42M. The average price of one CryptoPunks NFT was $232.7k. There are 3.373 CryptoPunks owners, owning a total supply of 9,999 tokens.” Let’s check in a few years to see if the CryptoPunks V1 make a dent on that.

Featured Image: Screenshot of CryptoPunks V1 from LooksRare | Charts by TradingView


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A Bored Ape NFT Sold For 0.75ETH By Mistake. Another Sold For 347ETH, But Wait…

The second most popular NFT collection, Bored Ape Yacht Club, is back on the news. On the one hand, a deadly mistake cost a pseudonymous user more than $250K. On the other, a feelgood story of a diamond-hand holder that minted a Bored Ape seven months ago and just sold it for over $1M. Or did he? The deal is tainted by a suspect second transaction that the community immediately detected. 

Related Reading | The Sandbox Purchase Bored Ape Yacht Club NFT for More Than $2.9 Million

Exciting beginning of the week in the Yacht Club, and NewsBTC has all the juicy details on both stories. 

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A Costly-Costly Mistake In The Bored Ape Yacht Club

Maxnaut’s membership to the Yacht Club has been revoked. This person’s distraction while listing his Bored Ape for 75ETH, lead him to actually list it for 0.75ETH. A bot immediately snatched it, paying an extra high transaction fee to ensure the extremely profitable buy. Not only that, the bot listed it for 88 ETH straight away. Forget the Roomba and those goofy Boston Dynamics robots, this is the most useful and effective bot ever created. 

The ex-owner, Maxnaut, told Cnet:

“I list a lot of items every day and just wasn’t paying attention properly. I instantly saw the error as my finger clicked the mouse but a bot sent a transaction with over 8 eth [$34,000] of gas fees so it was instantly sniped before I could click cancel, and just like that, $250k was gone.”

A horror story if we ever heard one. Multitasking takes another victim. 

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ETHUSD price chart for 12/13/2021 - TradingView

ETH price chart for 12/13/2021 on Kraken | Source: ETH/USD on TradingView.com

From Diamond Hands To Millionaire, But Wait…

Only 10.000 Bored Apes exist. All of them were minted for 0.08ETH each. The photographer John Knopf was one of the lucky people that believed in the project from the get-go and was greatly rewarded. This is his story. “I bought my ape for .08 on minting night and just sold it for 347 ETH. (…) I am crying so much. Thank you Bored Ape Yacht Club for completely changing my life and everyone in the community!”

The person who told him to buy completes the heartwarming story. “Going from degening into Bored Ape Yacht Club because I liked the art, to telling John Knopf to ape in that fateful Friday night (…) I’m so so so happy for you. Massive. Massive for you, and for the BAYC community.”

But wait, what is this? The Ethereum blockchain shows that John Knopf sent 230 ETH back to the wallet that bought his Bored Ape.

But wait, what is this? The owner of the wallet did send a message to John Knopf through the blockchain asking him to return the funds. Apparently, he was trying to make a bid and made a million Dollar mistake.

The New Bored Ape Owner Shared His Side Of The Story

A few days later, Deepak Thapliyal, the Bored Ape 9452’s new owner, told his story. “I decided I wanted this ape no matter what (…) I knew I wanted it, so originally I moved 655 ETH into my wallet because I was actually prepared to buy it at full ask.”

He wasn’t actually making a bid, but checking John Knopf’s wallet activity in Etherscan. However, “After I placed my originally bid, I had to move 230 ETH to another wallet in mobile. I _thought_ the copy button for the address I was sending too was pressed properly. PS: I was multi tasking.” Here we go, multitasking takes another victim. 

Deepak found Knopf’s on Twitter, and “I tweeted at him and he followed so I could DM him. I explained my story and told him how I wanted his ape. He quickly informed me he had no intentions to keep my money and would send it back. He asked if I wanted the ape still which I said “yes”.” They agreed on a price and the rest is history. “Funny story to tell my kids one day when I give them this ape.  Thanks to John for being a standup guy and returning my ETH.”

Facts And Burning Questions

And that’s pretty much it. Do you buy Deepak Thapliyal’s story? Was it an innocent mistake? Or do you think he and Knopf were up to something? The high price buy raises all of the Bored Ape’s prices, specially Bored Ape 9452’s value. However, the blockchain doesn’t lie and Knopf ended up with 347 ETH total.

Related Reading | Miramax Sues Quentin Tarantino Over “Pulp Fiction” NFTs. Tarantino Moves Forward

You have all the facts and every side of the story. Reach your own conclusions.

Featured Image: Screenshot from the Bored Ape's website | Charts by TradingView


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Discord drops Ethereum and NFT integration plans after backlash

Popular community messaging app Discord has been forced to walk back its integration plans with Ethereum (ETH)-based NFTs following strong backlash from a significant number of its user base.

The pushback started on Nov. 9 after Discord’s founder and CEO Jason Citron tweeted “probably nothing” accompanied by a screenshot of the app’s user settings page that displayed an ETH logo and option to connect digital wallets such as MetaMask and Wallet Connect.

Citron was then bombarded with thousands of comments calling on him to abandon the plans along with users threatening to cancel Nitro subscriptions. The crypto-skeptics asserted that NFTs are a Ponzi scheme and damaging to the environment due to the amount of energy consumption used to mine cryptocurrencies.

While Citron had commented that the feature was in “pre-release” mode, on Nov. 11 he indicated it had moved to “no-release” mode:

“Thanks for all the perspectives everyone. We have no current plans to ship this internal concept. For now we’re focused on protecting users from spam, scams and fraud. Web3 has lots of good but also lots of problems we need to work through at our scale. More soon.”

Despite Discord being a commonly used app amongst the crypto community — with NFT projects in particular using the platform to build communities — it appears that the gaming contingent (among others) using the platform are not so fond of crypto.

A Reddit post in the r/discordapp community on Nov. 9 titled “Please do not support NFTs” received around 6,400 upvotes.

User “CaboSanLukas” stated that NFT tech is “a scam,” and added that: “Imagine you buy a ticket that says you own X image. But that ticket has no legal validity in any country. Also, the value of NFTs is based on pure speculation and scarcity. While “Atulin” asserted that:

“You burn a hectare of the Amazon forest to get a link to a receipt for a purchase of something. You don’t get that something, you don’t even get the receipt, you get a link to the receipt.”

Related: Twitter Crypto: The dedicated team aimed at exploring DApps and more

Back on Twitter, Hayden Adams, the founder of decentralized exchange Uniswap said earlier today the reaction Citron was getting was “pretty surreal” but a good reminder of how early into Web3 the world is.

“PoS + L2s will fully address environmental concerns over the next year imo, but the misunderstanding and fear will be around much longer,” he said.