Many users bought Punks’ NFTs on the basis that there were only going to be 10,000 of them, not potentially 20,000.
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Late Monday, popular nonfungible tokens, or NFTs, platform OpenSea once again delisted the CryptoPunks v1 collection, which spiraled into existence along with the iconic CryptoPunks v2 collection due to a smart contract bug. The Digital Millennium Copyright Act takedown notification issued by CryptoPunks 2 developers Larva Labs to OpenSea reportedly caused this. As the company is also the creator of the CryptoPunks v1 collection, this move has struck some as strange.
— V1 Punks (@v1punks) February 7, 2022
For many years, OpenSea banned the CryptoPunks v1 collection as users shunned their authenticity. The collection’s recent listing at LooksRare and other NFT platforms led to an increase of recognition, which led OpenSea rescinding its original ban. At the time of publication, the wrapped CryptoPunks v1 collection had surpassed 315. 44 Ether (ETH) ($974,000) in total volume traded and continues to operate. But the fight for authenticity of the NFT collection seems to be heating up. Velinova.eth, a developer of CryptoPunks v1 Discord claims that they have spoken to a top-tier IP attorney in the U.S. who asserts they are legally able “to continue the trade of these CryptoPunks.” The community is currently preparing a counter-notice against the OpenSea investigation. On top of that, its NFT holders have chosen to rename the collection to “CryptoPunks V1 313 WPV1,” partly to reflect the NFTs’ wrapped nature for patching up the aforementioned bug.
CryptoPunks V1 community announcement | Source: Discord
The issue of CryptoPunks’ authenticity may have significant financial consequences. With a total of 824,947. 17 ETH traded ($2. 55 billion), CryptoPunks v2 is the most popular NFT collection globally. However, a part of the collection’s high demand stems from its scarcity as its supply is fixed at 10,000 Punks. If another 10,000 images from CrptoPunks v1 are legitimized, it could potentially dilute the brand, leading to a rapid decrease in the NFTs’ price.