In brief

  • CryptoPunks creators Larva Labs apologized for selling old “V1” CryptoPunks NFTs from a scrapped smart contract.
  • The firm suggested potential legal action against the community-led project, which “wraps” the discarded NFTs to make them functional.

Larva Labs’ CryptoPunks are considered by many to be the gold standard of Ethereum NFT profile pictures, with the collection generating billions of dollars in sales as Crypto Twitter’s preferred status symbol. However, its star may be fading somewhat due to recent events, and now Larva Labs is facing fresh scrutiny for its own actions.

When the CryptoPunks were first minted in 2017, a glitch in the original smart contract—the code that programs NFT collections and decentralized applications—prompted Larva Labs to scrap the first edition and reissue the NFTs. The second edition eventually became crypto-famous, with some $2 billion in trading volume to date, per CryptoSlam.

However, some of those “V1 CryptoPunks” NFTs have been “wrapped” via a community-made smart contract and reissued as ERC-721 Ethereum tokens, each with a different background color than the standard Punks. That makes it possible to sell the NFTs as historical relics—with interest and prices rising of late.

“This recovery of the original Punks smart contract is a community-led and rapidly-growing phenomenon consisting of original Punk claimants, NFT historians, digital archeologists, and extremely talented developers,” reads the unofficial V1 Punks website.

Larva Labs recently went on the offensive, suggesting that they…

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