In the middle of a tough global economic situation, this @cryptopunksnfts sold for half a million USD. And daily Punk sales still touch $100k+.
Here’s why I believe Punks are relevant and will continue to be:
2 of some of the biggest reasons Punks are relevant:
1) Exclusivity (Scarcity Principle)
2) Brand attachment theory & Emotional memory effect
I explained the last 2 effects previously on a different thread, linked below 👇
However, let’s briefly explain them again!
- Exclusivity (Scarcity Principle)
The scarcity principle holds that an item’s value increases with its rarity or difficulty of acquisition, just like supply and demand. Only 10k Punks exist, plus their effect of being one of the earliest NFT collections adds more value. Exclusivity has existed for ages. We see it daily.
Exclusive brand discounts to users, rare collection cards (Pokémon, sports players, …), owning rare designed shoes (certain Nike models, etc).
For example, A LeBron James rookie card became the most expensive basketball card of all time when it sold for $5.2 million in a private sale.
When an asset is rare or limited, so are its benefits. A strong sense of community and belonging is produced when you are one of the select few
to have access to them. In the image below, you’ll notice that sentimentality/socialization is huge in NFTs, which brings us to n2.
2) Emotional attachment to brands
Brand attachment is the emotional connection between people and brands.
In a study about this topic, one person described how emotional memories took part in their favorite brand. The brand in this case is Campbell’s Soup 👇
Another similar study says: “The more a person identifies with a brand and believes that it reflects who they are, the stronger the emotional bond becomes.” Brand attachment can be related to emotional memory (remembering a certain feeling/memory caused by a brand/project).
This article below was written in 2017. A Punk sold for $1. Peep the last sentences:
The thought of buying something just to “feel” you’re early, is because the brand (project) triggered a certain emotion + exclusivity. The same article mentions that Matt Hall (co-creator of Punks) @larvalabs said they wanted
to create something that was “truly scarce” and “not subject to the whims of even its creators”.
Most people tend to purchase brands they’re familiar with. This is why when web2 brands come to the space, their most common purchases are a Punk or a BAYC. People might not know what an NFT is, but they sure have seen a Punk image before.
Sheffield (head of crypto at Visa) said that punks have become a “cultural icon for the crypto community”, after the purchase.
And it’s true. The Punks are icons now.
The most recent case was @TiffanyAndCo, releasing 250 of real-life jewelry only available to Punk holders. These brands don’t choose Punks “just because”.
The above are just examples: what I love about Punks is that their value is “independent”, meaning that their value isn’t dependent on a certain team/brand.
They’re valuable because they’re CryptoPunks: art icons of ETH’s early art scene.