5th February 2022 > > CryptoPunks again.
Market Snap (at time of writing)

Market Wrap
That big move in 10 year treasuries has been completely ignored by cryptos with a near 10% rally since yesterday.
Curious Cryptos’ Commentary – CryptoPunks
Perhaps I am the only one who was unaware of this, but I have been a bit taken aback to read that there are two versions of Crypto Punks, referred to as V1 and V2.
Given the focus on non-fungible tokens (NFTs) during 2021, this story has great relevance to the whole NFT space, and probably not in a beneficial way.
To recap, Larva Labs created CryptoPunks V1 in 2017. Once all 10,000 had been sold, a bug was discovered that allowed subsequent buyers to withdraw any ETH paid for a purchase. In response Larva Labs launched CryptoPunks V2 as an exact replica but without the bug.
Larva Labs also declared V1 as inauthentic.
Owners of V1 identified a solution to the bug by wrapping the NFT into an ERC-721 contract. V1s are now listed on LooksRare and OpenSea:
This situation raises some interesting questions about the rarity of V2 for which total sales on OpenSea alone is now 821 ETH, or approximately $2.2bn give or take:
The position is even more complicated than it appears at first as both V1 & V2 contracts point to the same file image, effectively giving two owners the same rights as each other over just one file.
The legal stance is on the murky side, as summarised neatly by Cointelegraph:
“However, there is no legal precedent as to whether the spin-off, resurfacing and re-commercialization of an NFT art collection due to a smart-contract bug constitutes an act of copyright infringement.”
With V1 punks selling at 25% or less of the price of V2 punks, and a seemingly legitimate claim that V1 is truly the original, there is a lot of money potentially at stake here.
Reserve Treasury Protocols (before they all go to zero)
Reminder – Olympus and Wonderland are, to the best of my knowledge, live viable projects. XEUS, FORT and JADE turned out to be scams, though they are still live scams. Scams are not uncommon in these Wild West fringes of Decentralised Finance (DeFi).
Point of order – a staunch and loyal supporter of the CCC has asked that I make clear that it is only my belief that JADE is a scam. The project is still very much alive, and there is a wide body of opinion that does not concur with my view. I am very happy to make this point – the CCC believes that consenting adults are allowed to have different opinions on a wide range of topics.
Photon appears to have won the prize for being the most extraordinary scam. In under 18 hours it went to zero. And as far as I can tell – and I am no blockchain analytics expert – they walked away with less than $30k.
It is very upsetting we have scumbags like that around.
Open positions:

Closed positions:

Recent Posts
See Alltl;dr Georgia, Wisconsin, the list is ever-growing. Oh, and perhaps every investment fund in the world will soon be owning BTC by proxy –...
tl;dr The SEC’s behaviour is far more becoming than we have ever seen before. Operation Choke Point 2.0 is finally killed for good in a...
tl;dr The CFTC is going full-on crypto. It seems that Texas and Michigan are of a like mind. Market Snap Market Wrap That’s four straight...
Comments