OpenSea has delisted CryptoPunks in the past and it is doing it once more amid some legal battles. A majority of the users who acquired Punks’ nonfungible tokens (NFTs) on the basis that there were just going to be 10,000 of them, not possibly 20,000 have been served with a rude awakening.
On February 7, the popular nonfungible tokens platform OpenSea once more decided to delist the CryptoPunks v1 collection. This collection spiraled into existence together with the iconic CryptoPunks v2 collection as a result of a smart contract bug.
The delisting happened allegedly as a result of a Digital Millennium Copyright Act takedown notice that was issued by CryptoPunks v2 developers Larva Labs to OpenSea. Since the firm is also the developer of the CryptoPunks v1 collection, the move has now struck some of the users as strange.
LL has forced @opensea to remove V1 Punks collection because of a DMCA takedown.
We are responding via a counter-notice from our counsel in due course. We look forward to updating you further.
In the meantime, trade using https://t.co/KjPg88vDqE or @LooksRareNFT pic.twitter.com/1qmgdQrR7l
— V1 Punks (@v1punks) February 7, 2022
For several years now, OpenSea has banned the CryptoPunks v1 collection as the users shunned their authenticity. Nevertheless, the collection’s recent listing on competing for nonfungible platforms, such as LooksRare, increased recognition and led OpenSea to rescind its first ban. At the time of writing, the wrapped CryptoPunks v1 collection had surpassed 315.44 Ether (ETH) ($974,000) in total volume traded and continues to operate.
However, the battle for the authenticity of the nonfungible token (NFT) collection seems to be heating up. In an announcement that was posted in the official CryptoPunks v1 Discord, developer Velinova.eth claims that they have spoken with a “top-tier IP attorney from the U.S.” who alleges that they are “lawfully able to carry on in the trade of these CryptoPunks.”
In the meantime, the community is now getting ready to counter-notice to the OpenSea takedown. On top of all that, its nonfungible token holders have chosen to rename the collection to “CryptoPunks V1 313 WPV1,” partially to reflect the NFT’s wrapped nature for patching up the previously mentioned bug.
The issue of CryptoPunks’ validity may have considerable financial consequences. With up to 824,947.17 ETH traded ($2.55 billion), CryptoPunks v2 has become the most popular NFT collection throughout the world.
Nevertheless, some of the collection’s high demand arises from its scarcity as its supply is originally fixed at 10,000 Punks. In case 10,000 images from CrptoPunks v1 are legitimized, it might end up diluting the brand, resulting in a speedy drop in the price of the NFTs.
While based on previous reports that cited data from market insight provider Dune Analytics, OpenSea crossed a monthly nonfungible token trading volume of $4 billion level for the first time. OpenSea is the biggest nonfungible token marketplace in the world.
The gains represent a 20% increase from the past high of $3.4 billion that was reached in August last year. Moreover, the total sales in the market reached $25 billion in 2021. Thus, the delisting is guaranteed to hit CryptoPunks sales considerably.
