The NFT pioneer CryptoPunks has changed hands again, this time being acquired by a foundation called Infinite Node (NODE) from Yuga Labs, the developer of the Bored Ape Yacht Club (BAYC). Although the terms of the deal have not been disclosed, according to multiple sources cited by NFT Now, NODE paid approximately $20 million for the acquisition. Following the news, the floor price of CryptoPunks rose from 42 ETH to 47.5 ETH.

CryptoPunks, the progenitor of NFTs, was launched by Larva Labs in 2017 and is widely regarded as the catalyst for the modern digital art movement. Larva Labs, a creative technology firm founded by Matt Hall and John Watkinson, has seen its creators ascend to the ranks of the best-selling living artists, thanks to the over $3.07 billion in total sales volume of CryptoPunks.

In March 2022, Larva Labs transferred the intellectual property of CryptoPunks (and another work, Meebits) to Yuga Labs. Now, three years later, CryptoPunks has changed hands once more, finding a new home at NODE.

Wylie Aronow, co-founder of Yuga Labs (also known as “Gordon Goner”), commented on the move: “We have always been committed to enhancing and protecting their cultural heritage, but we have always understood that Punks need a permanent home to be passed down. Seeing this vision realized with the help of the Node Foundation feels like coming full circle. They are best positioned to safeguard the cultural legacy of Punks.”

NODE Foundation was established by Micky Malka and Becky Kleiner, the founders of Ribbit Capital. It is a non-profit organization dedicated to the preservation, research, and exhibition of digital art, aiming to elevate internet-native artworks and integrate them into broader cultural and academic discussions.

In April of this year, NODE Foundation announced that it had received $25 million in funding from Malka and Kleiner to advance its vision for the future of digital art. The organization describes itself as a “perpetual, mission-driven” fund and states that this acquisition “charts a new course for the preservation of internet-native culture.”

Despite CryptoPunks’ sales volume exceeding that of all living contemporary artists, they have yet to make it into traditional art rankings or mainstream discourse. NODE believes that bridging this cultural divide starts with redefining the experience of digital art.

“Our goal is to build a networked framework that allows digital art, such as CryptoPunks, to thrive in the digital realm while also being incorporated into the grand narrative of art history,” said NODE, which plans to carry on and promote the Punk spirit through three pillars:

• Preservation: Using advanced blockchain infrastructure to ensure the technical integrity and long-term availability of CryptoPunks.

• Community: Building an active ecosystem that connects digital innovators with art enthusiasts.

• Expansion: Creating new contexts where CryptoPunks can be studied and displayed both as a technological innovation and an artistic achievement.

NODE plans to establish a permanent exhibition hall in Palo Alto to display all 10,000 CryptoPunks. The gallery will also run an Ethereum full node to enhance the accessibility and permanence of the collection. Micky Malka stated: “By combining museum-grade preservation techniques with a perpetual endowment fund, we aim to secure the future of this milestone work and make it easier for scholars, curators, and collectors to interact with it.”

To achieve these goals, NODE has assembled an advisory board consisting of well-known figures from the CryptoPunks community and the world of crypto art, including Matt Hall and John Watkinson, Wylie Aronow, and Erick Calderon (aka “Snowfro,” founder of Art Blocks). Natalie Stone will also be hired as a consultant for the NODE team during the transition to manage the project.

The acquisition announcement was generally seen as positive by the community, with the floor price of CryptoPunks rising from 42 ETH to 47.5 ETH. “This is undoubtedly good news for Punks,” said CryptoPunks holder @VonMises14, who highly praised the acquisition, believing that “it means the Punks IP has found its ‘final destination,’ where it can grow and develop without any form of monetization or corruption.”

Given past incidents of blue-chip NFTs being “ruined” and CryptoPunks’ own close calls with “pollution,” the Punks community is particularly concerned about brand value and cultural purity.

A year ago, Yuga Labs launched the Super Punk World NFT series based on CryptoPunks, which was met with strong opposition and criticism from the community. Many felt that the “wokeness” displayed in Super Punk World severely deviated from the original spirit of Punks, with some even accusing Yuga Labs of destroying Punks. After the backlash, Yuga Labs co-founder Greg Solano immediately stated: “We will no longer touch CryptoPunks and will only decentralize and keep them on the blockchain,” adding that they planned to support museums and institutions in acquiring the original works to promote them to the public.

However, protecting the cultural value of CryptoPunks as an artwork may also require controlling its use, replication, or monetization. As Web3-focused lawyer @jabranthelawyer pointed out: “If NODE follows a traditional ‘cultural preservation strategy,’ it is not hard to imagine new restrictions: Will the freedom to commercialize Punks be reduced? Will derivative projects be more tightly controlled? Will there be restrictions in the name of ‘cultural integrity’?”

Yuga Labs had immediately granted NFT holders IP usage and commercialization rights after acquiring CryptoPunks, allowing them to freely create, display, and monetize on both personal and commercial levels. Whether NODE will retain these commercial rights after this acquisition remains unknown.

That said, this may not be the primary concern of the Punk community. For them, perhaps the best choice is to leave well enough alone.