Greg Solano, co-founder of Yuga Labs, has publicly denied rumors that the company is planning to sell the rights to its iconic CryptoPunks collection.
This speculation, originating from NFT researcher Wale Moca, has caused considerable debate in the Web3 community.
CryptoPunks co-founder quashes IP sale rumors
Wale Moca shared the rumor on X, formerly Twitter, stating that he has received information from multiple sources that a sale of CryptoPunks intellectual property (IP) may be taking place.
“I am now very confident to share this with you after hearing from many close sources: Yuga Labs may be in the process of selling CryptoPunks IP,” Wale Moca write.
In response, Greg Solano quickly went to X to explain the rumor. “Nothing,” he said post responded to Moca’s statement after an NFT trader ask for an explanation on this issue.
“A lot of people have reached out to us, especially in the last few months. This doesn’t mean we’re doing anything. We only make a trade if we feel very confident that it will deliver long-term +EV benefits to Punks. My life and work are NFTs. I would not do a transaction just for the money if I felt it would hurt the legacy of the property,” Solano confide more.
The CryptoPunks collection, widely recognized for its historical importance and symbolism of NFT culture, has always captivated the digital art community. In March 2022, Yuga Labs acquired the intellectual property (IP) of CryptoPunks from Larva Labs, solidifying its position as a leader in the NFT space.
Despite Solano’s denials, the rumors alone have boosted CryptoPunks market activity. The collection’s floor price increased by more than 15%, from 34 ETH to a monthly high of 40.39 ETH. Trading activity also spiked, with 28 transactions recorded in the past 24 hours—a significant surge in the otherwise stagnant NFT market.
The importance of CryptoPunks in the NFT space
Speculation about potential buyers adds fuel to the fire. Moca offered two possible scenarios: either one buyer might want to keep the collection intact to preserve its cultural and historical value, or a group of collectors might join forces to take ownership. IP.
“Who is the buyer? All I know is that it’s not a big Web2 brand, nor is it another big NFT company (Pudgy Penguins/Azuki/Doodles). From what I hear, the new potential owner plans to keep the IP intact,” Wale Moca added.
One prominent name that comes up is @seedphrase, a notable NFT collector best known for CryptoPunk #8348, which was used as collateral for a record 2.75 million USDC loan. @seedphrase’s mysterious tweet, “CryptoPunks ❤,” only fueled speculation.
Regardless, CryptoPunks remains the undisputed leader in the NFT market, with an estimated total value of $1.3 billion. Closest competitors such as Azuki and Pudgy Penguins are still far behind, with a floor price of 23.7 ETH for the latter.
However, the 2024 bull market is not particularly favorable for NFTs, as attention has shifted to other blockchain sectors. Additionally, NFT activity is increasingly migrating to Solana, making Ethereum collectibles more valuable but less liquid.
Additionally, the speculation and price spike reflect CryptoPunks’ long-term importance in the NFT ecosystem. As the first major visual arts project, it continues to receive respect and attention, both financially and culturally symbolic. Solano emphasized the need for prudent management.
“Whoever owns Punks needs to have a stomach of steel and be willing to lock up the IP and throw away the key,” he said.
In this context and to preserve the legacy, Yuga Labs is preparing release a book Exclusively for CryptoPunks. The book, due out in New York on January 30, 2025, aims to document the collection’s impact and cement its place in art history.
For now, the CryptoPunks community can rest assured that Yuga Labs has no immediate plans to cede control. However, as Solano said, any future decisions will prioritize the long-term value and legacy of this pioneering NFT collection.