The CryptoPunks team surpasses $1 Billion in annual sales of NFT as NFT speculation surges

Good morning friends! Welcome back to Week in Review! We looked at Bezos’s Blue Origin lawsuit against NASA last week. Today, I am writing about the remarkable and successful resurgence in the NFT industry.

This article can be downloaded from TechCrunch’s newsletter page. Follow my Twitter @lucasmtny if you are reading it on TechCrunch.

It’s the big deal

If I had the chance, I’d probably be writing about NFTs every week in my newsletter. Because I want to share the important information with everyone in tech, and not just my interests, I usually stop myself from doing this. I am allowing myself to be free this week.

It’s so bizarre that the NFT market exists, and it is so internet-native. I cannot get enough of the NFT culture. The market for digital art via blockchain has outstripped all logic in recent days.

Back in April, I wrote about a platform called CryptoPunks that — at that point — had banked more than $200 million in lifetime sales since 2017. Since then, the little pop art-pixel portraits of CryptoPunks have had a new life. Although it was impossible to imagine, in just 24 hours, $141 million of sales were made by the platform, which is a new record. By the time you read this, the NFT platform will have likely passed a mind-boggling $1.1 billion in transaction volume according to crypto tracker CryptoSlam. To buy one of these 10,000 digital characters you will need at most $450,000 of Ethereum cryptocurrency. This number was 300k when I last sent this newsletter.

The CryptoPunks are not the only ones affected by the explosion of the NFT industry in the last week. Several billions have flowed into NFT projects that feature drawings of dinosaurs, monkeys, penguins, and penguins. Many people dismissed the NFT surge as an accident after the rally in NFT earlier this year, culminating with Beeple’s Christie’s sale of $69 million. This is what triggered the recent frenzy.

It has partly been the resurgence in cryptocurrency prices to all-time highs, and the desire of crypto-rich to diversify their vast wealth without having to convert their wealth into fiat currencies. For those who already have a large amount of crypto wealth, it can be a good idea to invest hundreds of millions in an NFT project that has fewer participants than the currencies they underlie. But a lot of this money is likely FOMO dollars from investors who are dumping real cash into NFTs, bolstered by moves like Visa’s purchase this week of their own CryptoPunk.

It’s fair to say this is an unsustainable growth rate, however it is not clear how far this market growth will go before investment stagnates or slows down. Investors looking to invest in something exciting and risky should not be concerned about the market slowing.

Figma CEO Dylan Field gave some guidance to Dylan, who had just sold CryptoPunk (which is worth $13.6 Million today) earlier this year.

Image Credits: Kanye West

Additional things

These are TechCrunch’s top news stories this week.

OnlyFans suspends its porn ban
OnlyFans made a dramatic change of heart and announced this week they wouldn’t ban “sexually explicit” content from their platform. They stated in a statement they have “secured assurances necessary for support our diverse creator community, and have suspended the October 1 policy modification.”

Kanye gets into the hardware business
Kanye West showcased a new mobile music device, the Stem Player, ahead of the release of his next album. This $200 device is small enough to be carried around in your pocket. It allows you to alter and mix music from any source. Kano, a hardware manufacturer, developed the device.

Apple settles developer lawsuit
__S.46__ Apple has shared with us a proposal settlement. It is still awaiting approval by a judge. The proposed settlement starts at $100 million and then gets even more exciting with changes to App Store Bylines. This includes the possibility for developers to pay subscriptions through their app.

Twitter starts rolling out ticketed Spaces
Twitter’s Clubhouse rival Spaces has been a strong sell. However, they have also successfully built on it in recent months and turned its copycat feature into something that is able to succeed on its own merits. The company just started rolling out its latest attempt to let creators sell tickets for events, which it shared with us this week.

CA judge strikes down controversial gig economy proposition
Uber and DoorDash poured tens to millions of dollars into Prop 22. This law rescinded a California law that required gig economy companies to treat workers as employees. A judge declared this week that the proposition was unconstitutional. Although the appeals court stayed the ruling, it would still have significant implications for the businesses of these companies in California.

Image Credits: guirong hao (opens in a new window) / Getty Images

Additional things

These are some of my favourite reads this week from Extra Crunch’s subscription service:

Future tech exits have a lot to live up to
While inflation may be temporary when it comes consumer prices, startup valuations have been rising in recent quarters. This is the clear takeaway of a PitchBook report that looked into the valuations from several startup funding events in America .

OpenSea UX teardown
“…Is the OpenSea experience in creating and selling NFTs worthwhile? That’s what UX analyst Peter Ramsey has been trying to answer by creating and selling NFTs on OpenSea for the last few weeks. The short answer to that question is …”

Is B2B SaaS marketing getting it wrong?
“Solutions,” “cutting-edge,”‘scalable’, and even ‘innovative” are all examples of overused tech jargon that is found in every corner of the techverse. SaaS marketers around the globe seem to be singing the same tune, using the same jargon. Unfortunately for them, research shows that such heavy copy and unclear benefits is inhibiting customers and reducing conversions …”.

Thank you for reading. You can also get the TechCrunch newsletter in your email if you are reading it on TechCrunch. Follow my Twitter @lucasmtny for more information.

Lucas Matney

Publited Sat, 28 August 2021 at 18:53:04 +0000

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