On December 20th, Yuga Labs unveiled its new wrapper for CryptoPunks that will enable the OG Ethereum-based collection to benefit from the same capabilities as newly created NFTs.
Because CryptoPunks launched in 2017 before the ERC-721 standard was established, there were severe limitations on what could be done with a Punk. “CryptoPunks 721,” as the wrapper is dubbed, will let holders perform actions that are common with NFTs today that are built on the ERC-721 standard, such as borrowing against the NFT and trading across several marketplaces.
The wrapper was spearheaded by the anonymous developer OxQuit, who told nftnow that the older CryptoPunks collection lacked many of the qualities that new NFTs have. For example, “you can’t trade them on OpenSea” or Blur. He added that although wrapper contracts have existed for some time, the “CryptoPunks 721” contract is safer and more “straightforward.”
CryptoPunks were originally created by Larva Labs in 2017, and free to anyone with an Ethereum address willing to pay gas fees. They were launched with their own marketplace, which still exists, but has various problems that make it more difficult to transact the Punks.
With the new wrapper, CryptoPunks can be sold across regular NFT marketplaces seamlessly like new NFTs. This greatly simplifies the process and will make the Punks more accessible to people who aren’t Web3 natives. It also opens up new financial opportunities for holders to collateralize their digital assets to borrow or lend money.
While the new feature is a major improvement and should be exciting for Punks’ holders, OxQuit issued a caveat. He recommended that if you’re not using the wrapper to list the NFT, or for lending or borrowing, that it‘s best to leave the Punks unwrapped, since certain security risks that most NFTs face could be exposed through wrapping. That said, there are safety features built into the wrapper that should protect holders.
Along with the wrapper is a new feature called Stash Engine, which tracks all 10,000 Punks and lets Punks be wrapped or unwrapped in batches, potentially saving users lots of money in gas fees.
Yuga Labs Continues to Innovate
Yuga Labs, creators of Bored Ape Yacht Club, Mutant Apes, Meebits and other NFT collections, is one of the biggest names in Web3. Unfortunately, the studio has had a tough time in the bear market, seeing most of its collections‘ floor prices plummet. But despite the tough times, few studios have been as active building in Web3 this year.
At Rartity Sniper, we’ve covered dozens of articles about Yuga Labs in 2023. Here’s a review of the top headlines beginning with the most recent:
- November. Yuga Labs & Magic Eden to Launch Creator Royalty NFT Marketplace
- October. Yuga Labs Announces Web3 ‘Open House’ Event in Hong Kong
- September. Yuga Labs Teases New CryptoPunks Documentary
- September. Yuga Labs Debuts Cipher Puzzle Contest on Bitcoin
- July. Yuga Labs Expands Metaverse with Roar Studios
- April. Yuga Labs Claims ‘Landmark’ Victory in NFT Trademark Case
- March. Yuga Labs Nets $16.5M with Bitcoin Ordinals NFT Drop
The CryptoPunks 721 wrapper released this week is another example of Yuga Labs doing its best to bring value to its community. Though it’s not necessarily a move that will affect the NFT space as a whole, for the lucky holders of CryptoPunks, the new wrapper opens up a realm of opportunities. At Rarity Sniper, we’ll keep our eyes and ears open for any new developments from Yuga Labs.