Is CryptoPunks about to be acquired? Who is the intended buyer?

Author: William M. Peaster, Bankless; Compiler: Tao Zhu, Golden Finance

Yesterday, the floor price of CryptoPunks rose from 35 ETH to 42 ETH, with a maximum of over $135,000 in US dollars.

Trading volume and sales surged by 321% and 285% respectively on the day.

Is a CryptoPunks acquisition underway?

Recent rumors suggest that another CryptoPunks acquisition is in the works.

Momentum began to build when Azuki researcher Wale shared on X that "multiple sources" suggested that Yuga Labs "may be selling the CryptoPunks IP."

Of course, Yuga Labs, the creators of Bored Ape Yacht Club, also made a splash when they first acquired Punks from Larva Labs in March 2022.

Terms of the deal were never made public, but some estimates put the price at more than $100 million.

Since then, Yuga has proven to be a solid and largely hands-off steward of the Punks ecosystem to his credit, but they've also experienced round after round of drama.

For example, in May 2024, we first learned of new acquisition interest after Yuga faced opposition to its initial Super Punks World auction setup and more, when crypto OG Cobie confirmed he had inquired with a group of fellow holders Possibility to purchase Punks IP together.

Yuga declined, and things were quiet on that front until the latest takeover rumors started circulating this week.

Well, this leaves us with two main questions:

• Is the guess true? Is Yuga in a trade with the Punks?

• If so, who are the interested buyers?

As for the first question, the official answer is no. According to reports, there are no plans. Yuga co-founder Garga said the same thing on X yesterday.

Now, as details of the deal are finalized, this could be a smokescreen of denials.

We've seen something like this before in cryptocurrencies, right. Arbitrum, for example, had denied plans for a token and then launched an airdrop.

But even if we accept the denial at face value and assume it's probably true, it's still interesting to consider how the prospect of a potential ownership change could spark a deal frenzy.

Much of the action here is definitely whale momentum trading punks riding the new wave of excitement. But at least some of that comes from people betting on the possibility of a new owner.

But here's the thing. What would new, better owners look like?

Because all things considered, Yuga's relationship with Punks has been so good that if there was another ownership change, the best-case scenario is that the new owners would basically follow Yuga's approach, just be a little more hands-off than they are now.

On the other hand, I think most other large cryptocurrency companies are not good managers here. Most people will tend to be more hands-on to get the best value for their money.

Still, in Wale's original tweet (debunked? not debunked?), he noted that he'd heard the potential Punks buyer wasn't "a major Web2 brand nor...another large existing NFT company." (Pudgy Penguins, Azuki, Doodles).”

He added that it appears "the plan of the potential new owner is to keep the IP intact."

So, for the sake of argument, let's assume there is actually a buyer.

To be sure, it makes perfect sense not to touch the IP, as buyers would actively exploit Punks, which would harm the series' assets, trigger considerable sales pressure, and cause a backlash from Punks and the broader NFT community.

That's the worst-case scenario, right - a new, unwanted owner doing something deplorable just to squeeze out as much cash as possible. Considering Punks' history to date, this would be a tragedy.

But what's the good news?

Even if a sale is taking place, Yuga knows the stakes and won't sell to any shady party. I totally believe this. The purchaser, or in the case of a community group, has to be very good before Yuga can agree to anything.

But again, we're just assuming. For now, it looks like Punks will stay with Yuga, which is probably for the best considering some of the other alternatives.