Yuga Labs, the organization behind Bored Ape Yacht Club, transfers ownership of CryptoPunks to a digital art charity group.
Infinite Node Foundation Acquires CryptoPunks Intellectual Property Rights
The Infinite Node Foundation, a new arts nonprofit dedicated to digital art conservation, announced on Tuesday the acquisition of the "full intellectual property rights" for CryptoPunks, one of the oldest and most famous non-fungible token (NFT) series, from Yuga Labs.
Founded by venture capitalist Meyer "Micky" Malka and Becky Kleiner, the Infinite Node Foundation has an advisory board stocked with heavyweights in the Web3 industry, including Yuga Labs co-founder Wylie Aronow, Art Blocks founder Erick Calderon, and Matt Hall and John Watkinson, the original creators of CryptoPunks.
CryptoPunks, a collection of pixelated punks hosted on the Ethereum blockchain, was created in 2017 by Hall and Watkinson. The collection is credited with kickstarting the NFT craze in 2021 and has been housed in various museums, including the ICA Miami, LACMA, and Centre Pompidou.
Yuga Labs, parent company of the Bored Ape Yacht Club NFT collection, bought the rights to CryptoPunks for an undisclosed sum in 2022. Since then, the NFT market has experienced a dramatic downturn, with a report published last August by NFTevening stating that 95 percent of NFTs are considered "dead," with the average NFT owner experiencing a 44.5 percent loss on their investment[1].
While Infinite Node did not disclose a purchase price for CryptoPunks, crypto news website NFT Now has reported that multiple sources indicated a payment around $20 million[2].
Malka stated in a press release, "CryptoPunks sparked a cultural movement that blended code, community, and commerce. By pairing museum-grade conservation with an evergreen endowment, we intend to future-proof this landmark work and make it easier than ever for scholars, curators, and collectors to engage with it."
Hall and Wilkinson, the founders of Larva Labs, added, "The Punks were created to be truly decentralized, and have become a defining example of digital permanence and online network effects. The NODE foundation was created to explain and promote these ideas as a new art medium, and are the perfect long-term home for the punks."
While Yuga Labs continues to hold a substantial amount of physical CryptoPunks, having only transferred five to the Infinite Node Foundation as part of the deal[2], the acquisition by the Infinite Node Foundation marks a shift in the stewardship of CryptoPunks, aiming to elevate their cultural and artistic significance[3].
[1] https://www.nftevening.com/market-reports/nft-market-report-august-2022/[2] https://www.nftnow.com/news/15014/node-journal-yuga-labs-cryptopunks-sale[3] https://infinodenecrypto.medium.com/the-infinite-node-foundation-f3e43810f040
The Infinite Node Foundation, with advisors from the Web3 industry, has acquired the intellectual property rights for CryptoPunks, a renowned digital art series created in 2017. As digital art collectors and curators delve into this landmark work, the acquisition by the Infinite Node Foundation aims to enhance CryptoPunks' cultural and artistic significance. The acquisition marks a shift in CryptoPunks' stewardship, seeking to elevate them as a crucial piece in the art museum landscape, combined with the power of technology.
