Despite the increased community interest, the resurgence of CryptoPunks V1 appears to be a problem for some – especially at OpenSea.
OpenSea, the world’s top NFT marketplace, said earlier this week that CryptoPunks V1 would be removed from the platform.
This drastic action came shortly after Larva Labs’ announcement to remove the collectibles, implying that OpenSea is siding with Larva Labs amid the issues surrounding its return.
Technically, CryptoPunks V1 is similar to CryptoPunks due to the origin of the same smart contract. However, Larva Labs, the company behind the renowned collection, stated that V1 is not an official CryptoPunks.
The action was not well embraced by the community, particularly by those collectors recently into the 10k collectibles. OpenSea’s delising partly adds fuel to the fire in the context of ongoing legal battle.
OpenSea Deals With NFTs Popularity
Back in 2017, when the first CryptoPunks were minted, LarvaLabs issued 10,000 CryptoPunks V1. However, there was a significant shortcoming in smart contract management.
Rather than allowing the seller to get the money, it permits the buyer to do so after the transaction. The buyer receives both the virtual works and the money, while the seller receives nothing.
Larva Labs decided to cancel the first edition and re-enact NFT as a result of the event. The second edition was established, and it is finally gaining traction in the crypto world, with almost $2 billion in trade activity.
The key source of the dispute was the reissuance of some CryptoPunks V1 NFTs under wrapped ERC-721 Ethereum tokens – each with a different background color compared to the standard CryptoPunks NFTs.
The collectibles have quickly gained traction, as seen by the growing interest and prices.
More Challenges for NFTs are Bound to Come
While it is still questionable whether CryptoPunks V1 is what it claims to be, many members of the community appear to have formed an opinion on the matter.
Since the release of CryptoPunks v1 alongside the more widely known CryptoPunks v2, some have questioned the legality and authenticity.
However, when whales boosted the volume on LooksRare and other rival sites, CryptoPunks v1 has gained popularity.
CryptoPunks V1 and OpenSea had quite a history.
The world’s largest NFT marketplace delisted the collection before. However, the collection has resurged on competitors’ platforms, prompting OpenSea to loosen restrictions.
At the time of writing, the total volume of the wrapped CryptoPunks v1 series had breached 315.44 ETH. CryptoPunks V1 is still active on different platforms. They are now known as Classic Punks or Wrapped CryptoPunks V1.
Huge Value Was Created
The debate over the authenticity of this NFT series is getting more complex. Velinova.eth, the creator of CryptoPunks v1, made the following statement in the official CryptoPunks v1 Discord:
“We have been in contact with a top-tier IP Attorney from the US who has advised us that we are lawfully able to carry on in the trade of these CryptoPunks. Given we have now been publicly threatened with legal action by Larva Labs, and that we have been advised that their legal options are slim and perhaps frivolous, we wish to inform that we will challenge vehemently any attempt to bully, intimidate or cause damage to V1 or V2 CryptoPunk holders.”
The community’s reaction has gone wild with protection against OpenSea’s decision. Holders of CryptoPunks V1 NFTs changed the name to “CryptoPunks V1 313 WPV1.”
The value of these CryptoPunks is the sole motive for this legal conflict. NFTs, like most cryptocurrencies, are priced based on supply and demand.
So, less supply means more value. A CryptoPunk now costs 68.95 ETH, or around $212,198. Because only 10,000 CyptoPunks are available. If V1 is approved on Opensea, the supply doubles to 20,000, effectively lowering the value and uniqueness of the CryptoPunks.
Many collectors believe that this action goes against the primary notion of decentralization.
An NFT collector expressed his frustration,
“Screw Larva Labs. The right move was simple: embrace punks’ history, in all its messiness…ultimately it adds character to the collection. Instead we get the lamest web2-mentality action possible: legal threats.”
In unregulated markets, almost anything is possible.