Non-fungible tokens (NFTs) have become a fast favorite among art collectors, crypto enthusiasts and arbitrage traders alike. The white-hot industry trend blends together facets of all three demographics, tokenizing art with potential for fast appreciation, all stored on the blockchain. And today, NFT traders are getting very excited over a new merger. The deal is bringing together two of the biggest NFT companies in the world. So, what might the CryptoPunk NFT merger mean for investors?
CryptoPunks are one of the earliest and most successful NFT collections to date. The project tokenizes thousands of unique, computer-generated images of pixelated sprites. Furthermore, the collection was launched by parent company Larva Labs in June of 2017 on the Ethereum (ETH-USD) chain.
In 2021, NFTs exploded in popularity. The idea began clicking with investors, hungry themselves for a new industry with big growth potential. CryptoPunks, as one of the oldest projects, became a mascot of sorts for the NFT craze. As the months wear on, CryptoPunks are some of the highest-fetching tokens in the industry; in February, one CryptoPunk sold for nearly $24 million.
The Larva Labs team has been able to relish in the success of the collection. Even Visa (NYSE:V) bought a CryptoPunk back in August; the company purchased the token as a way to learn about the space, and also to commemorate a new chapter for an industry it believes will only grow more important as time progresses.
And while CryptoPunks might have been sliding in popularity recently, the collection is getting shaken up by a new buyer. How are things going to be different?
CryptoPunk NFT Merger Gives Bored Ape Founders a Chance to Redeem the Pixel Tokens
The CryptoPunk NFT collection might be one of the most lucrative ventures in the space, but it has fallen under scrutiny recently. Indeed, CryptoPunk holders have been criticizing Larva Labs for being largely absent in the further development of the project. The company, just a two-man venture that has been hands-off since launching the project, is now giving these critics what they want, thanks to news of a merger.
Indeed, Larva Labs is announcing this week that it has sold the intellectual property rights of the CryptoPunks to none other than Yuga Labs, the company behind the Bored Ape Yacht Club NFT collection.
Born in April of 2021, the Bored Ape collection has fast caught up with CryptoPunks. And in many respects, it has passed the older project. The randomly generated ape NFTs have become more than just a status symbol for holders; owning an ape token has given investors access to a club of holders with its own benefits, including admission to real-life events.
The news is huge for anybody who thought CryptoPunks were becoming stale. Yuga has proven itself at keeping things fresh and engaging; in addition to giving holders guest-list access to events, the Bored Ape founders have released multiple other tokens for free to holders of the original collection.
Changes to the collection are already becoming apparent in the midst of the acquisition; Yuga has granted all CryptoPunk holders full commercialization rights for their tokens — something that it already does for Bored Apes. Moreover, the company is keeping its ear to the street as to what’s next for the collection; a spokesperson for Yuga says it will wait to see what users do with their tokens, and “listen.”
On the date of publication, Brenden Rearick did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.