CryptoPunks

Marilyn and Punks and Art, Oh My!

The TL;DR that you need to know before I get into this is that CryptoPunks is a “digital collectable experiment” from 2017 which predates but is also credited with kicking off the whole NFT craze, in fact helping define the standard. I wrote about the different versions of them earlier this year. One could argue, and I do, that most of the biggest and most popular NFTs are derivatives in one way or another of CryptoPunks. Randomly generated from a collection of traits, there are 10K individual CryptoPunks which people often use as avatars. Separately, CryptoPhunks is a 2021 derivative project which literally copied the entire CryptoPunks collection and flipped it horizontally (in either a cash grab or protest, depending on who you talk to and at what point in the story you are referring to – I plan to write more about this in the future), creating a mirror image and kicking off a huge debate about appropriation, fair use and IP rights in this wild west of digital art.

The CryptoPunks collection is incredibly influential, having spawned hundreds/thousands of derivative projects as well as millions of nasty replies from haters on Twitter with accusations of being a “crypto bro” for anyone who dares use one as their avatar. They get referenced all the time in clickbait articles proclaiming shock and awe about how much one of them sold for recently. Point being, people know about them. As a connoisseur of culture with impeccable taste I’ve really enjoyed seeing the creativity they inspire and I’ve collected some of my favorite derivative works in this little virtual gallery if you want to look around. I’ll be expanding that in the near future but it’s still pretty interesting at the moment if you want to follow the thread of inspiration a bit.

Recently I discovered an artist called PIV who has been doing studies of CryptoPunks in relation to fine art, namely Abstract Modernism and work in that orbit. I picked up a piece called “Pablo Picasso” which references the famous 1953 photo of Picasso by André Villers. 

l: Villers 1953 / r: PIV 2022

For the less visual and more musically inclined this is like Johnny Cash covering Nine Inch Nails “Hurt” or Guns N Roses covering Wings “Live And Let Die” or Redman referencing Cypress Hill with “Sawed Off Shotgun, Hand On The Pump.” It’s one artist giving a nod to another artist. If you know the reference it’s an immediate reward, if you don’t and you are curious it’s an invitation to discover work you might have missed. I love this kind of thing so fucking hard. So in this “Punkism” series PIV is very intentional with their work, limiting their palette to colors and pieces of CryptoPunks.

Putting CryptoPunks in this context of Pop Art is kind of brilliant especially when you consider the influence that Pop Art has on contemporary culture it’s hard to argue that CryptoPunks don’t have that same influence on digital art and culture right now. So it’s a fitting comparison. Obvious as it may be, you can’t talk about Pop Art without acknowledging Andy Warhol and indeed PIV did that directly but also almost in passing with an earlier work entitled “Six Marilyns.” This piece inspired a larger collaboration with Tom Lehman (former CEO of Genius.com which itself was previously Rap Genius and focused on annotating song lyrics to help people understand the references artists were making – just to bring that around even further). The pair teamed up to create a collection of “Marilyn Diptychs” which, using code most often used to create generative art like the CryptoPunks themselves, they made endless variations on a single CryptoPunk which itself looks a lot like Warhol’s Marilyn drawing a direct reference to Warhol’s diptych. 

Foundation Supports Him” PIV & Lehman, Generative 2022
A collection of “OC Marilyn Diptychs” by PIV & Lehman, 2022
Marilyn Diptych, Warhol, 1962

Let’s talk about Warhol’s Marilyn Diptych for a second – did you know this was not initially intended to be a diptych? Art collectors Burton and Emily Tremaine were visiting and saw the two pieces displayed next to each other and suggested that they should be paired, which immediately seemed like the obvious choice. But Warhol’s Marilyn image itself is worth spending some time with. I really like Tina Rivers Ryan’s description of the work, she writes:

“Warhol’s use of the silkscreen technique further “flattens” the star’s face. By screening broad planes of unmodulated color, the artist removes the gradual shading that creates a sense of three-dimensional volume, and suspends the actress in an abstract void. Through these choices, Warhol transforms the literal flatness of the paper-thin publicity photo into an emotional “flatness,” and the actress into a kind of automaton. In this way, the painting suggests that “Marilyn Monroe,” a manufactured star with a made-up name, is merely a one-dimensional (sex) symbol—perhaps not the most appropriate object of our almost religious devotion.”

“Shot Sage Blue Marilyn” Warhol, 1962

Like most of Warhol’s portraits he didn’t ask permission which occasionally caused legal issues, but also directly relates to the issues of appropriation and fair use that surround the CryptoPunks and many of their derivative works, and in fact one might say much of the entire NFT market. Warhol’s intentional repetition of his images, which would degrade over time as screens were used slightly changing each one, were meant to both desensitize people to the image, but also reclassify the icons already present in his audience’s cultural awareness. In many ways, a 10k avatar collection does much of the same things, though I’d argue that wasn’t the initial intent.

Coming back to these new Marilyn Diptychs and to play with the tech even further, if you own one of the diptych NFTs you can extract any of the individual Marilyns from the piece into its own profile picture/avatar which is now not only a derivative of Warhol but of the CryptoPunks as well. Again, I love this.

9 examples of “OC Marilyn PFP” by PIV & Lehman, 2022

But as I said before, this is conscious. It’s intentional. It’s humans seeing one thing and taking something else and bending it to look similar to the other thing. Which is the art of it all, but it also got me thinking about the generative aspect more.

As many of you know last year I collaborated with my longtime friend, artist Shepard Fairey, on a generative NFT project called DEGENERATE/REGENERATE where we used scans and elements and details from his previous work as well as some of his better known iconography and using this kind of generative tech came up with 7400 individual pieces that are randomly generated but true to his aesthetic. They looked great, which we expected, but what we didn’t expect was that they would combine some of his work in ways he hadn’t previously considered sparking new inspiration which he’s taking back to his physical work. So you have this cycle of inspiration – human inspiring the computer, the computer then inspiring the human. The ever evolving body of work now has DNA from both going forward. It’s pretty exciting and I expect you’ll hear more directly from him about that in the future. But I’m getting off the point, which is about the ghost in the machine, so to speak.

PIV’s work is intentional. They consciously decided to make art that references other art. But CryptoPunks are not intentionally referencing other art. They are just a collection of individual traits – hair color, style, eyes, mouth, glasses, etc thrown into a generator which was told to spit out a 100×100 grid with 10,000 individual combinations (This is a little known fun fact, unlike most avatar NFT collections today which generate 10,000 individual images, CryptoPunks is just one single image with a grid of the individual punks). It was an art experiment – no one knew how it would work out or where it would lead.

CryptoPunks, LarvaLabs, 2017

This got me curious, without the human hand and intention – could I find a similar but unintentional reference? I narrowed down the traits to sort through and began hunting, eventually landing on CryptoPunk #3725 which is, to my eye, damn close to Warhol’s Marilyn. The only real discrepancy being the green eye shadow. Blue would have been better and there is a blue eye shadow trait but it doesn’t appear with the rest of these traits – the mole, the blond hair, pale skin, etc anywhere in the original 10k CryptoPunks collection. But there was something about it that still wasn’t right. It was facing the wrong way. I immediately thought of CryptoPhunk #3725.

l: CryptoPunk 3725 (2017) / c: Warhol’s Marilyn (1962) / r: CryptoPhunk 3725 (2021)

It’s perfect right?

I get so excited thinking about the randomness that led to its creation. A script blindly and emotionlessly assembles a hodgepodge of traits – essentially a realization of the infinite monkey theorem –  and makes an almost perfect match. Years later a reactionary protest act puts on the finishing touch. Neither of these two actions intend on this result, but we end up here nonetheless.

I knew it was a crazy long shot but I reached out to the owner of Phunk 3725 and made an offer. To my surprise and delight, they accepted and I am now the owner of Phunk 3725. This piece draws a direct, yet accidental, connection between these two eras of art. It’s incredibly important, and I’m psyched to be its caretaker.

Explaining Cryptopunks Versions

Since it’s been a topic I’ve been yapping about recently a few people asked me for a quick explainer on all the Cryptopunks V1/V2/V3 stuff so the other night I did just that in a Twitter thread but I thought I’d turn it into a blog post as well for easier future reference.

If you’ve spent 4 seconds in the NFT space or 4 seconds near the NFT space or just know some people have some crypto art or something you’ve seen Cryptopunks so I’m going to assume you know what I’m talking about when I say “punk” in this context. There’s no questioning the influence and significance of cryptopunks, there are a bazillion derivatives and they have made headlines for selling for bazillions of dollars. Hours ago in fact Punk #5822 sold for 8000Ξ which today converts to just shy of $23 Million USD. So yeah, they are pretty famous, and it’s important to understand that fame happened almost exclusively in 2021. Cryptopunks were actually released in 2017 and for most of that time very few people cared about them. Towards the end of 2020 people really started going after them and in 2021 they went nuts. But the cryptopunks everyone thinks of are actually the second version (V2).

Going back to 2017, a company called Larva Labs put Cryptopunks online as free to claim and promised the ability to trade/buy/sell them after they were all claimed. It took a few days/weeks for that to happen and once they were all claimed people started trying to trade them. But there was a problem. A bug in the code meant that if you tried to sell a punk the buyer got the punk AND the eth from the sale, leaving the seller with nothing. This is obviously a problem and as soon as it was found Larva Labs said “wait! Don’t trade them yet” and started working on a fix. Because things on the blockchain are immutable they couldn’t really “fix” the punk that were already out in the world, so they made new ones. They airdropped the new (V2) punks to everyone who had claimed the original (V1) punks and figured that was that. Potentially important detail: Larva Labs didn’t send the new punks to the the current punk holders – they sent them to the claimers. So if you claimed a V1 punk and gave it to a friend, you got the V2 punk, they didn’t.

Because the V1 punks were not really sellable everyone kind of forgot about them, and all focus was put on the V2 ones that people could easily trade. It’s worth noting that punks predate the ERC-721 NFT standard we know and love today. Cryptopunks are in fact ERC-20 tokens. In order for Cryptopunks (or any other pre-ERC-721 NFT like Mooncat Rescue) tokens to be traded on NFT marketplaces like OpenSea they need to be wrapped inside of an ERC-721 token. Wrapping is confusing but also really straight forward. It’s just putting one token inside of another. You’ve probably seen WETH which is just Wrapped ETH. Here are a bunch of V2 Cryptopunks that have been wrapped for example, and here’s LarvaLabs recognizing them. That’s apparently an important detail as some have suggested that wrapping changes or somehow negates the NFT that is being wrapped, which obviously isn’t the case. The socks your mother bought you for your birthday don’t cease to be socks when she wraps them in wrapping paper – same idea here. Anyway, for years people were happily buying and selling V2 cryptopunks both wrapped and unwrapped. But they just called them “Cryptopunks” and not “V2 Cryptopunks” because they were the only ones being traded so it was obvious what you meant. But in 2021 some people started working on a wrapper for the V1 Cryptopunks so they could be traded as well. This is where things get interesting. If you look at the incredible timeline Leonidas has assembled you’ll note that Cryptopunks is the very first 10k Avatar project on the Ethereum blockchain.

Despite claims made by lots of people, notably Larva Labs themselves, Cryptopunks are not the first NFT, but they are the first 10k avatar project. But now suddenly you have 2 Cryptopunk collections in motion. Both made by the same company, both pointing to the same art. Released within weeks of each other. Fun fact, the V1 contract calls them “cryptopunks” but the “fixed” V2 contract calls them “cryptopunksmarket” – anyway, with V1s being safely wrapped inside an ERC-721 wrapper they can now be traded, and people started trading them. Anyone who has spent any time around collectors knows that an error or a misprint or a fuckup is always super desirable – and that’s how people started to think of the V1s. They are this mostly forgotten mistake, which is appealing to some people.

And especially if you have cryptopunks because they are historically important as a lot of people claim to, then this original version of the cryptopunks released a few weeks earlier is SUPER INTERESTING! (all caps for emphasis). This is where things which are seemingly clear get really messy quickly. LarvaLabs has an unclear relationship with the IP of the Cryptopunks. I wrote a bit about this last year in relation to their reactions to some derivative projects

Long story short on that, when Ryder Ripps made his derivative Cryptopunk LarvaLabs sent a DMCA notice to Foundation, Ryder contested it and LarvaLabs couldn’t support their infringement claim and the DMCA was dropped. That hasn’t stopped them from sending lots of DMCA notices though. Most people never appeal the DMCA so that is the end of it, but since Ryder did and won his appeal, it’s suddenly very interesting and there is question if LarvaLabs could even own the IP at all.

From their end, LarvaLabs didn’t have a license in place before they distributed them and have taken different and conflicting positions on the matter over the years, so there’s just nothing clear to fall back on which is why it’s such a grey area. 19/ Anyway, jumping back to now – V1 and V2 Cryptopunks are now on the market. Anyone with a V1 cryptopunk who couldn’t trade it before can now safely wrap it and then sell it. Guess who had a lot of V1 Cryptopunks? LarvaLabs. In what is now largely seen as a “bad move” LarvaLabs secretly wrapped a bunch of V1 cryptopunks and sold them for a couple hundred ETH. Then went on the attack saying that V1 punks were not legitimate.

As an aside, last year I wrote about how Blockchains have the potential to become social archives, and the documented provenance for each NFT might end up telling interesting stories about the history of specific NFTs and that’s exactly what just happened here. The 39 V1 Cryptopunks that were wrapped and sold by LarvaLabs are already being referred to as the “rainforrest punks” and have become especially desirable among some collectors in what is basically the Streisand Effect for Web3.

So LarvaLabs then sent a DMCA to OpenSea as they have been known to do, and OpenSea complied by taking down the listing for the V1 punks. Now if you’ve been following along this far you know that V1 punks were made by LarvaLabs. So they kind of just DMCA’d themselves. This is akin to Nike making shoes with a white swoosh, selling them and then deciding they want the swoosh to be red and then claiming infringement against someone who bought the white swoosh Nikes trying to resell them on ebay. In other words it makes no sense. V1 punks were made and sold by LarvaLabs. They can’t decide after they are already sold that they don’t like them and then claim they aren’t real, or that the secondary market is infringement. So of course the DMCA notice was appealed

That happened yesterday, so now LarvaLabs has 10 days to respond (or not) until we get to the next chapter in however this plays out. At the moment V1 punks are not being sold on OpenSea but are being sold on their own marketplace and on LooksRare. I don’t know if those sites received DMCAs and just ignored them or if they didn’t receive anything, doesn’t really matter though. What happens next however is going to have very serious implications no matter which way it goes. If the DMCA is upheld the secondary market for almost all NFTs is suddenly in legal question. If the DMCA is dropped LarvaLabs will have to accept that their flagship IP isn’t as locked down as they thought, and that there are now 2x as many cryptopunks out there.

Interestingly enough, V2 punk owners have been complaining about how LarvaLabs has been handling IP for quite a while now leading a number of high profile punk owners to sell theirs in protest. So in some ways V1 & V2 owners have a common foe. Though maybe foe is too strong a word. LarvaLabs did make these cool avatars which everyone loves, even if their community relations/communication has been a bit lacking since then. And a lot of V2 owners actually own V1s as well, so it’s not really 2 different audiences.

March Update: In an unexpected surprise turn of events LarvaLabs announced that they sold the IP for CryptoPunks to Yuga Labs, producers of the Bored Ape Yacht Club, who immediately announced that they would not be pursuing any of the DMCAs filed by LarvaLabs and also that they would be granting commercial rights to CryptoPunk owners. As part of the deal LarvaLabs transferred their CryptoPunks to Yuga, including some 1000 V1 punks. Almost immediately the V1 collection was reinstated on OpenSea.

But what about V3? V3 Punks is a totally unrelated project created by fans and seems to be embraced by both V1 & V2 owners. It’s just a fun nod to the whole project distinguishing itself as different but also promoting unity and joy, which is kind of nice. Personally I’ve really enjoyed the very rich derivative world that Cryptopunks has spawned and I think the project is incredibly significant. I’ve bought pieces from a lot of the so called “shitpunk” derivative projects over the last year. I also really nerd out about the IP stuff which is obvious from last years article. I bought some V3s because I think it’s fun and I recently traded an NFT I received for free for a V1 because I think it’s a cool piece of history. I have no idea where this will go, or how that will impact values of anything. None of what I’m talking about should be seen as endorsements or speculation, but I find it super fascinating and look at it kind of like collector memorabilia. Anyway, that’s my quick catch up. We’ll see what happens next!

Apes, Punks & Phunks: Adventures from the frontlines of the IP wars

Gather ’round kids, exciting and fascinating drama is afoot and you know you want to hear all about it. Assuming you are excited and fascinated by IP shenanigans, because really who isn’t right? While I want to just charge right into the theft and murder, oh yes dear reader there is theft and murder, I worry that I sometimes go to fast and leave people behind. So I’m just going to assume that you understand that copyright means the copyright holder (often the creator, but not always) retains all rights and no one else can do anything, and conversely public domain means no one retains any rights and anyone can do anything. Between those two extremes there’s a million miles of grey area which has been somewhat navigated by Creative Commons, who create copyright licenses that intentionally wave some rights while retaining others with the intention of fostering creativity and sharing. For example this blog post is published under a CC-BY license which means while I retain copyright or my words, I also allow anyone to use my words, expand on them or make derivative works and even sell that so long as they credit me as the original creator. Which is super totally cool. I’ve stumbled across my work in countless places, and people have ended up here because they saw something I wrote somewhere else and followed the breadcrumbs. Thanks Creative Commons!

OK, getting back to the juicy stuff. A very popular thing happening in the NFT space right now is for people selling large collectors of Avatars to grant commercial and derivative rights to anyone who buys those NFTs. I haven’t seen any using Creative Commons, because that would be easy and straight forward. Instead most often they have some hacky chopped together Terms of Service filled with rando copypasta from various other projects and it’s confusing AF. The gist being if you buy an NFT you can use it in other work and sell that work without issue. Essentially they are transferring the IP rights to the buyer, which has created a vibrant market for derivative works, and is helping fuel the overall growth of not just individual projects but also the entire NFT community and ecosystem. So this is a good thing.

But as we know, nothing is ever as straight forward as it seems. And this is where shit starts getting messy.

For a few months everyone was trucking along peacefully making derivative work of NFTs they bought that allowed such a thing, and everyone was happy and there were flowers and rolling fields of green grass and sunshine and then Taylor.wtf burned an ape. Taylor is an artist/musician/producer and also a shit disturbing agent of chaos. I say that as a high compliment and would encourage everyone reading this to aspire to such a description. In NFT parlance, “burning” something is to intentionally send it to a wallet that no one has access to—essentially removing it from circulation. When I say “an ape” I mean one of the Bored Ape NFTs made by the Bored Ape Yacht Club (arguably the hottest and fastest growing avatar collection at the moment). So he burned an ape and then put a video art project of that Bored Ape being set on fire up for auction on OpenSea (the largest NFT marketplace). At first people were just shocked that he’d burnt an ape (as they were trading for about $4k each at the time – though burning money is a long established form of conceptual art perhaps most famously employed by The KLF who literally burned a million GBP) but it got much more interesting when BAYC filed a DMCA notice and had the fire video taken down.

Still from Taylor.wtf’s Burning Ape

Their position was that as Taylor had burned the Ape before releasing the video, he was no longer the owner and thus no longer had rights to use the work. However! As they were not the owner anymore either it’s questionable about why they felt the need to intervene, which they clarified by saying they were doing so with respect to the current owner – and would do the same for any ape transferred from one party to another if the previous owner kept using it. However however! Since the ape was burned, by all understanding it has no owner, so whose rights were BYAC defending? No one came forward claiming to own that wallet and protesting, and no one could prove that the wallet wasn’t actually Taylors. Or, anyone else who might claim to own it. Point being, no one said “I own this thing and I object to how it’s being used by someone else.” Once this came to light it seems BYAC realized this was a huge steaming pile of shit they’d walked into, and cautiously backed out of it. The video was re-listed elsewhere without protest and remains online.

CryptoPunks

While Bored Apes are one of the hottest new Avatar projects, the grand daddy of them all is unquestionably Crypto Punks. It would just be bad form not to include them in this drama fest, luckily they are a magnet for it all. Let’s start with CryptoPunk #3100 – currently the highest selling Punk which sold earlier this year for 4,200 ETH or effectively just shy of $9 Million. There’s been much discussion about how an NFT is the token, and the image attached is just representative of the token – that is when you buy an NFT you aren’t buying that image so much as the digital token on the blockchain which is represented by that image. The conceptual artist Ryder Ripps decided to play with this idea by pointing out that the image representing the original CryptoPunks was a 24×24 pixel graphic entirely generated by a script. Ryder recreated #3100 by hand in 4000×4000 and minted it on several platforms. Same image on each, but each being a different token, different contract, and thus a different NFT. An interesting experiment that got much more interesting when Foundation was served with a DMCA notice by Larva Labs, the company who made CryptoPunks, and were forced to delist Ryder’s NFT. One might think “serves them right, that was obviously plagiarism” and many did in fact think that, but it seems many people don’t know about fair use and parody and this is where it got much more interesting- Ryder appealed the take down. You see, under the DMCA, a copyright holder can issue a take down notice to any service if they feel their IP is being infringed upon and the site has to immediately remove the infringing work, however if creator of the work that was taken down believes the action was erroneous, they can file an appeal and this puts the onus back on the company or person who filed the DMCA notice originally – and they now have 10 days to file a lawsuit supporting their claims – if they don’t they then are essentially conceding that they don’t have the legal position to support their initial action and the site in question is free to reinstate whatever was taken down. And again, because US Copyright law does specifically call out fair use and parody, Larva Labs backed down and Foundation has just reinstated Ryder’s Punks.

Ryder Ripps CryptoPunk #3100

This is a pretty decisive victory and will likely be taken into account going forward, however there’s another very related situation at play that was going on before all this went down and came to a head before this was resolved. Enter the CryptoPhunks. Who make it very clear in their manifesto that this project is social commentary and a parody aimed at “flipping off the punks.” While Ryder essentially just scaled up the image of a punk in his work, the Phunks actually changed the art. Is it a significant change? That’s up for interpretation but when you are talking about a source image that is only 576 pixels to begin with, how much of a change is needed for it to be significant? Most notably, while all 10,000 CryptoPunks are facing right, the CryptoPhunks are facing left. While this was criticized as a “low effort rip off” by more than a handful of people – it’s an obvious enough difference to be immediately identifiable something that could not be said about Ryder’s Punks. But wait, there’s more! In addition to the flip, CryptoPhunks added a 1 pixel wide outline to the box the Phunk sits in, which is an unquestionable artistic change. Again, we’re talking about a 24×24 pixel image, so very subtle changes are actually pretty significant. You might think these changes made things easier for them, but you’d be wrong. The first take down of the Phunks happened almost as soon as they launched in what seemed to be an editorial decision on the part of OpenSea where they were listed. To their credit OpenSea has been working to take down fake accounts selling fraudulent NFTs and it’s unclear if they understood that CryptoPhunks was a stand alone project and not something misrepresenting itself as official, and this take down appears to be have preemptive and hasty.

CryptoPhunks

After much community uproar OpenSea reinstated the Phunks account and heated discussion started happening on Twitter which involved many CryptoPunk owners disparaging the Phunks and calling the project a “low effort rip off” or “blatant plagiarism.” Ironically, those are “low effort” criticisms that fall apart as soon as you read the project’s mission statement, because while it might not be something that is creatively appealing to everyone, it definitely has some thought and intention behind it. As noted earlier many people in this space don’t seem to understand how copyright or IP works or is applied, or the importance parody and fair use have in culture which can be seen in the reaction to the Phunks from the “NFT community” (if there is such a thing) at large. But things did not end there, OpenSea pushed back with several statements from employees on Twitter which imply they see derivative projects as somehow lesser than original works, and the longer term viability of the Phunks future remained in question. This didn’t slow sales at all, and it’s entirely possible that the vocal outrage from CryptoPunk owners actually served as marketing for the Phunks. Which, again, was kind of the whole point. The Phunks laid a trap and the Punks walked right into it. It kind of reminds me of a time when a music critic friend of mine got punched in the face by the guitarist of a band he’d recently accused of being brainless thugs. Anyway, having freshly filed their DMCA takedown against Rider Ripps, Larva Labs repeated the effort and sent a take down notice to OpenSea, who promptly removed the Phunks from their site. Again.

It’s unclear if the Phunks team submitted an appeal like Ryder did, though it seems pretty clear if they did Larva Labs would have to back down here as well. Guess we’ll see in a few days as that clock runs out. At the moment the collection is still not viewable on OpenSea, but they are live and for sale on Rarible and Cargo. And in case you’ve assumed that these are just cheap knock offs, let me assure you they are selling for very real numbers to very serious collectors who recognize the cultural significance of what’s playing out here. Longtime readers will know that the intersection of parody and copyright is of personal interest to me and I’ve have my own run ins with companies trying to shut down protected speech. In the 20 some years since that showdown with the Associated Press I’ve watched similar situations play out time and time again, and it’s amazing how poorly understood the law around this subject is – and not just from the companies involved. I saw a number of people in the CryptoPhunks community criticizing OpenSea for taking down the CryptyPhunks collection after they received the DMCA notice from Larva Labs. They were accused of “old thinking” and “clinging to stupid Web 2.0 ideas” which is honestly as ignorant as accusing the Phunks of being “low effort rep offs.” While it’s fairly well understood that the DMCA is a bad and broken law– it is still a law and companies operating within the US still have to abide by it regardless of how any individuals personally feel about it. But as Ryder illustrated, it can be fought and that’s what the Phunks should be doing. The idea of a company with no physical presence bound by no jurisdictional laws is certainly interesting, but it’s not reality and probably not a great idea if you dig deep enough into it. But these situations are most likely the beginning and not the end, as more NFT projects grant certain rights and others don’t, and companies and marketplaces try to figure out how to navigate through this mess I expect more showdowns in the future. In the end, this is all a result of creativity and challenging norms and expectations, pushing boundaries and seeing just what new things we can build on top of old structures before they crumble. I’m excited to watch it play out, as a spectator and participant.

Update March 2022: A lot has happened since this post was written last year, not the least of which was the launch of NotLarvaLabs.com which mimics the LarvaLabs website in both appearance and function, providing a royalty free marketplace for trading CryptoPhunks which expands the parody and social critique from just the one NFT collection to an entire industry. Phunks team did not file a counter notice to LarvaLabs DMCA takedown at the time, however with the recent acquisition of the CryptoPunks IP by YugaLabs any action taken by LarvaLabs is no longer valid. To that end, Phunks have now officially requested that OpenSea relist the collection. This of course brings up a question: Phunks were playing the role of David to LarvaLabs Goliath, but if Goliath bows out and walks away what is left for David to do? What do Phunks stand for if the thing they were fighting against no longer plays a role. I asked a few public Phunk holders and they all seemed to say they’ve grown fond of the community and will stay because of that which makes sense, but it’s unclear what kind of a draw that will have for new people who are not in the community already. That said, there have been whispers that the NotLarvaLabs marketplace might be expanding to include at the very least V1 CryptoPunks but potentially other CryptoPunk related collections as well. Pivoting from a giant middle finger into a royalty free alternative to OpenSea for Punks could be a very interesting evolution and next chapter in the Phunks story.