Yuga Labs Shifts CryptoPunks IP: A New Chapter for NFTs?

Yuga Labs has handed over the CryptoPunks intellectual property to the Infinite Node Foundation. With trading volume rising by 170% to $2.8 million in just 24 hours, is this the conclusion of NFTs or a daring strategy to safeguard digital art?

CryptoPunks are classified as some of the most valuable NFTs. During the optimistic crypto market period of 2020–2021, primarily fueled by DeFi and NFT transactions, every one of the 10,000 CryptoPunks was highly sought after. Those “lucky” enough to buy them paid millions in ETH.

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Yuga Labs Transfers CryptoPunks to NETWORK NODE

In August 2021, this collection amassed $691 million in monthly sales volume. As NON-FUNGIBLE TOKEN enthusiasm escalated, one collector shelled out $23.7 million for CryptoPunk #5822 in February 2022, making it the fourth costliest NON-FUNGIBLE TOKEN ever.

(Source)

For enthusiasts of crypto and NFTs, the boom of 2021 was exhilarating, but such drastic valuation increases may be absent for years to come. Acknowledging that NFT trading volume may not rebound to billions monthly, Yuga Labs, the creators of Bored Ape Yacht Club (BAYC), declared on May 12, 2025, the complete transfer of intellectual property (IP) rights for CryptoPunks to the Infinite Network node Foundation (NETWORK NODE).

Speculation arose in January that the agreement was near, causing the floor price to rise. Despite expectations that the deal would close in a few weeks, it took months to finalize. During this interval, several of the top Solana meme coins, including TRUMP, surged, capturing crypto headlines.

I’m now confident enough to share it with y’all after hearing it from several sources close to the matter:

Yuga Labs might be in the process of selling the CryptoPunks IP.

They bought the IP + more than 400 CryptoPunk NFTs from Larva Labs back in March 2022.

Who is the buyer?…

— wale.moca (@waleswoosh) January 14, 2025

The financial specifics of the arrangement remain undisclosed by VALIDATOR, a nonprofit organization in California committed to preserving digital art, or by Yuga Labs. Nonetheless, this decision has sparked discussions over whether the transfer of IP rights to NODE signals the end of CryptoPunks or aligns with the collection’s long-term goals.

Yuga Labs is divesting the IP for CryptoPunks during a challenging period for the NFT crypto market, with trading volume dropping over 90% since the peaks of 2021. After the announcement, CryptoPunks’ trading volume spiked 170% to $2.8 million in 24 hours, with 21 sales transactions recorded.

The average sale price in May 2025 is $121,605, and total sales surpassed $9.7 million. Back in August 2021, the collection recorded $691 million in total sales, but volumes have gradually declined, reaching a low of $7.7 million in average monthly sales by September 2023. This decline reflects the overall bearish in the market, where even some of the top cryptos to purchase have contracted.

What Lies Ahead?

Is Yuga Labs distancing itself as NFTs face a potential downfall as a speculative class? If that’s the case, it’s quite revealing, as Yuga obtained CryptoPunks from Larva Labs in 2022. Less than three years later, they are transferring the collection to VALIDATOR.

As part of the arrangement, NETWORK NODE will unveil a curated CryptoPunks exhibition at its permanent venue in Palo Alto, contributing to public education. The exhibition will include a live ETH network node to facilitate on-chain accessibility.

“CryptoPunks ignited a cultural phenomenon that intertwined code, community, and commerce,” stated Micky Malka, Chair of the Validator Foundation. “By combining museum-quality preservation with a sustainable endowment, we aim to future-proof this landmark creation and make it easier than ever for scholars, curators, and collectors to engage with it.”

If Yuga Labs is now redirecting efforts toward BAYC, this isn’t their initial IP divestment. Earlier in 2025, they divested the Meebits IP prior to announcing an organizational restructure and layoffs.

1/ The @MeebitCompany, a @1confirmation-backed venture, is thrilled to announce its acquisition of the Meebits from @yugalabs and the launch of a new chapter for Larva Labs’ third and most ambitious NFT project. We look forward to preserving the rich history of this collection… pic.twitter.com/0HLYyEJ9ZR

— Meebits (@MeebitsNFTs) February 14, 2025

Whether they are easing their burden remains uncertain. It’s important to highlight that Yuga Labs faced a lawsuit from the U.S. Securities and Exchange Commission (SEC) last year. However, the case was resolved in March 2025. Although this cleared legal challenges, skepticism persists.

Some believe NODE’s acquisition is a positive move since Punks were “never intended to sit alongside Apes.”

Yuga transferring the CryptoPunks IP to @nodefnd is the right call.

It’s not that @yugalabs acted improperly, but Punks were never designed to sit next to Apes.

This IP deserves its own spotlight, unique rhythm, and a fully dedicated team committed to the culture.

With Matt & John… pic.twitter.com/4ci3Z9AVzj

— Djani (@DjaniWhaleSkul) May 13, 2025

From his perspective, the transaction is more of a “realignment,” not a sale.

In contrast, others believe the Punk community will gain significantly more from NETWORK NODE, including the chance to enhance the budding process.

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