"Original Edition" CryptoPunks emerge! Developers sell "V1 Punks" while copyright controversy resurfaces

Experiencing copyright issues, facing a monotonous project development format, and having the floor price lagging far behind, CryptoPunks has once again sparked controversy with the release of the original version "V1 CryptoPunks."

V1 CryptoPunks

The CryptoPunks development team Larva Labs initially released and gave away V1 Punks for free in 2017, but later discovered a vulnerability in the smart contract. Subsequently, the team updated the contract, abandoned the V1 version, and introduced the now well-known CryptoPunks, also known as V2 Punks.

In 2021, CryptoPunks gained significant popularity, but faced tough competition as the strong contender "Bored Ape Yacht Club (BAYC)" surged ahead of CryptoPunks due to celebrity endorsements and ongoing project collaborations.

While the development of CryptoPunks remained relatively subdued, the team remained tight-lipped about copyright issues, leading some holders to lose patience and decide to sell off their assets.

Repackaging and Rebirth

Although the V2 version was introduced, V1 still exists on the blockchain. Holders have the option to "Wrap" V1 Punks in the form of ERC-721 tokens for trading on the current Ethereum blockchain standard.

Currently, the floor price for V1 Punks on Opensea has reached 14.9 ETH.

Official Controversy

Controversy arose when Larva Labs co-founder John Watkinson sold his own V1 Punks, and Larva Labs subsequently released a statement condemning V1 Punks:

V1 Punks are not official CryptoPunks; we don't like them, and we even hold 1,000 V1 Punks... So, you should have a bottom line about the outcome of V1 Punks. All profits from V1 Punks will be used to repurchase CryptoPunks.

This contradictory behavior naturally sparked discontent within the community. As a result, Larva Labs co-founder Matt Hall issued an apology in the official Discord group:

We thought selling V1 Punks would clearly express our disgust for them. It now appears to be a terrible, foolish decision. We regret this and apologize to the community. While we initially did not address the copyright issues of V1, the community is now urging us to take action, and we will take appropriate measures in the future.

Larva Labs plans to use the proceeds to purchase CryptoPunks and the already acquired Meebits #6601, while also donating 210 ETH to the Rainforest Foundation. They emphasized that they have learned a painful lesson from this incident and hope that the donation will help restore their reputation.

Community Perspectives

CyberCodeTwins.eth and COLOMBO pointed out the contradictory actions of Larva Labs co-founder in selling V1 Punks and then accusing the buyers.

The crypto community member The Giver described V1 Punks as the top potential Alpha project of 2022, citing reasons such as:

• CryptoPunks being a top-two NFT project.
• V1 Punks being scarcer due to reasons like wallet loss over time.
• V2 holders retaliating by buying V1 due to lack of project developments.

Meta4 Capital conducted an in-depth study of V1 Punks and purchased several NFTs in December last year. Their optimistic reasons include:

• History cannot be erased; V1 Punks are the origins of CryptoPunks.
• Belief that V1 Punks will coexist with CryptoPunks.
• Associated with the most iconic CryptoPunks.
• Similar to Air Jordan sneakers banned by the NBA in the past.
• Belief in acquiring digital antiques.

Meta4 Capital noted that the current V1 to CryptoPunks price ratio is approximately 1:4, but once Larva Labs and holders align on future development plans, the NFT prices are expected to further rise. They also emphasized the tendency for flawed and recalled artworks in history to appreciate compared to their officially released counterparts, expressing their belief and anticipation in this aspect.