Infinite Node Foundation Acquires CryptoPunks NFT Collection From Yuga Labs

Infinite Node Foundation (NODE), a nonprofit organization dedicated to digital art, has acquired the intellectual property of the CryptoPunks non-fungible token (NFT) collection from Yuga Labs. This acquisition was announced by NODE on May 13. The deal includes an additional $25 million endowment, positioning NODE as one of the most well-funded nonprofits focused solely on digital art in the United States.

The terms of the acquisition were not disclosed. NODE has formed an advisory board to oversee the CryptoPunks collection, which includes Matt Hall and John Watkinson, the original artists behind the NFT collection, as well as a representative from Yuga Labs. The foundation aims to create a networked architecture that allows digital art like CryptoPunks to flourish within both digital and art-historical contexts.

CryptoPunks, described as "algorithmically generated pixel art characters," have significantly impacted the art world by existing outside traditional art frameworks and sparking a cultural shift that continues to reshape the digital landscape. The collection, launched in 2017 by Larva Labs, co-founded by Hall and Watkinson, has seen over $3 billion in sales. Each NFT sale generates royalties for the holders of the NFTs’ intellectual property.

In 2022, the highest-grossing CryptoPunk NFT sold for nearly $24 million. The collection was acquired by Yuga Labs in the same year, known for designing the Bored Ape Yacht Club NFT collection, which is the third-largest NFT collection by market capitalization. Yuga Labs also purchased Meebits, another Larva Labs NFT collection, before selling it in February.

In March, Yuga Labs announced that the US Securities and Exchange Commission (SEC) had closed an investigation into the company, describing it as "a huge win for NFTs." This development underscores the growing acceptance and legitimacy of NFTs in the broader financial and regulatory landscape.