As the legal struggle rages on, OpenSea delists CryptoPunks v1
Many customers purchased Punks’ NFTs on the assumption that there would be only 10,000 available, not possibly 20,000.
Late Monday, popular nonfungible tokens, or NFTs, platform OpenSea delisted the CryptoPunks v1 collection, which was created alongside the renowned CryptoPunks v2 collection as a result of a smart contract problem. This was apparently in response to a takedown request made by CryptoPunks v2 creators Larva Labs to OpenSea under the Digital Millennium Copyright Act. Given that the corporation is also the producer of the CryptoPunks v1 collection, some have questioned this decision.
For many years, OpenSea prohibited the CryptoPunks v1 collection due to user suspicions about its validity. However, the collection’s recent inclusion on other NFT sites, such as LooksRare, increased its visibility, prompting OpenSea to lift its initial prohibition. At the time of writing, the wrapped CryptoPunks v1 collection had reached a total volume transacted of 315.44 Ether (ETH) ($974,000) and was still operational.
However, it looks as if the dispute over the validity of the NFT collection is intensifying. Developer Velinova.eth says in a statement uploaded to the official CryptoPunks v1 Discord that they have met with a “top-tier IP counsel from the United States” who states they are “lawfully entitled to go on in the trading of these CryptoPunks.” Meanwhile, the community is formulating a response to OpenSea’s removal notice. Additionally, the collection’s NFT holders have renamed it “CryptoPunks V1 313 WPV1,” in part to represent the NFTs’ wrapped nature for repairing the aforementioned flaw.
The validity of CryptoPunks may have serious financial ramifications. CryptoPunks v2 is the most popular NFT collection worldwide, with a total of 824,947.17 ETH exchanged ($2.55 billion). However, a portion of the collection’s popularity is due to its exclusivity, since the collection’s supply is limited to 10,000 Punks. If additional 10,000 photos from CrptoPunks v1 are legitimised, it may dilute the brand, resulting in a sharp decline in the price of NFTs.