CryptoPunks Find New Home as Nonprofit Acquires Iconic NFT Collection Amid Market Decline

In a significant shift for the NFT landscape, the Infinite Node Foundation, a newly established nonprofit dedicated to the preservation of digital art, has acquired the intellectual property rights for CryptoPunks from Yuga Labs. This acquisition comes at a time when the NFT market is experiencing a notable decline, raising questions about the future of digital collectibles.

Key Takeaways

• The Infinite Node Foundation has acquired CryptoPunks from Yuga Labs.

• The acquisition aims to preserve and promote the legacy of CryptoPunks.

• The NFT market has seen a dramatic downturn, with many assets losing value.

• CryptoPunks will be showcased in a permanent exhibition space in Palo Alto.

The Acquisition Details

The Infinite Node Foundation announced the acquisition on May 13, 2025, marking a pivotal moment for one of the most iconic NFT collections in history. Founded by venture capitalist Meyer “Micky” Malka and Becky Kleiner, the foundation aims to ensure the longevity and accessibility of digital art.

While the exact terms of the deal were not disclosed, reports suggest that the acquisition price was around $20 million. This move positions the Infinite Node Foundation as a leading entity in the digital art space, equipped with a $25 million endowment to support its mission.

The Legacy of CryptoPunks

CryptoPunks, created by Larva Labs in 2017, consists of 10,000 unique pixelated characters that have become synonymous with the NFT movement. The collection is credited with igniting the NFT craze in 2021, with some individual tokens selling for millions of dollars. However, the NFT market has faced significant challenges, with reports indicating that 95% of NFTs are now considered “dead,” and average losses for owners reaching 44.5%.

Future Plans for CryptoPunks

The Infinite Node Foundation plans to focus on three core areas:

1. Preservation: Ensuring the long-term survival of the CryptoPunks collection.

2. Community Engagement: Making the collection accessible to scholars, curators, and collectors.

3. Expansion: Developing new ways to study and exhibit the collection.

The foundation's first major initiative will be to host a comprehensive exhibition of all 10,000 CryptoPunks at its permanent space in Palo Alto, California. This exhibition aims to highlight the cultural significance of CryptoPunks and their role in the evolution of digital art.

Market Context

The acquisition comes as the NFT market grapples with a downturn. Following Yuga Labs' purchase of CryptoPunks in 2022, the company faced backlash over its handling of the brand and the launch of derivative projects that some community members deemed inappropriate. As a result, Yuga Labs has shifted its focus back to its flagship Bored Ape Yacht Club project, distancing itself from CryptoPunks.

Despite the challenges, the price floor for CryptoPunks has seen a recent uptick, rising over 74% in the past week, coinciding with a surge in Ethereum's value. This resurgence suggests that while the NFT market is struggling, interest in iconic collections like CryptoPunks remains strong.

Conclusion

The acquisition of CryptoPunks by the Infinite Node Foundation represents a new chapter for this iconic NFT collection. With a focus on preservation and community engagement, the foundation aims to secure the legacy of CryptoPunks in the ever-evolving digital art landscape. As the NFT market continues to navigate its challenges, the future of CryptoPunks may well depend on the foundation's efforts to adapt and innovate in this new environment.

Sources

• Yuga Labs, Owner of Bored Apes, Sells CryptoPunks to Arts Nonprofit, ARTnews.com.

• Yuga Labs sells CryptoPunks IP, Cointelegraph.

• The CryptoPunks NFTs are being sold to a non-profit art foundation, The Verge.

• Yuga Labs sells CryptoPunks IP to nonprofit Infinite Node Foundation, The Block.

• CryptoPunks Have New Home as Nonprofit Acquires Ethereum NFT IP From Yuga Labs, Decrypt.