Yuga Labs Pauses CryptoPunks Amid ‘Woke’ Backlash

Greg Solano, the CEO of Yuga Labs, announced the company’s decision to cease any further involvement with the CryptoPunks project after receiving substantial backlash from the community pertaining to their new initiative, Super Punk World. Announced on May 20 through the official CryptoPunks account, this new collection consisted of 500 hybrid 3D sculptures. The sculptures were designed to blur the traditional lines of race and gender and were created by the New York-based painter Nina Abney. The intention was to honor the irreverent, early-internet roots of the original CryptoPunks project.

Despite its progressive aims, the Super Punk World collection was met with criticism from segments of the crypto community. Some members labeled it as overly politically correct or “woke.” One community member declared that Yuga Labs had effectively destroyed the CryptoPunks legacy by adopting such a direction, stating, “Go woke, go broke. Yuga killed Punks today.” Another community member, contemplating selling their CryptoPunk NFT, faced sarcasm from the influential yet pseudonymous figure known as Greg, who questioned if the announcement was a hack. An unhappy NFT trader even suggested that the community should block Yuga Labs and move on.

In response to these negative reactions, Solano issued a statement on X. He explained that Yuga Labs’ vision was a collaboration with prominent artists like Abney to bridge the gap between Web3 innovations and traditional art forms. Solano mentioned that the company intended to distribute Abney’s collection to those who have already been supporting her work. This could potentially mean airdropping pieces to holders of other collections like SuperCoolWorld.

As for the CryptoPunks series, Solano clarified Yuga Labs’ future stance, asserting that they would no longer interfere with the project. In his words, “What about punks? Yuga will no longer touch punks. They will just be decentralized and preserved on the blockchain.” This move indicates a commitment to maintaining the integrity of the CryptoPunks by decentralizing and preserving them without further alterations.

Yuga Labs aims to support museums and institutions in acquiring CryptoPunks NFTs. The goal is to enhance their collections and educate broader audiences about the historic and cultural significance of these digital assets. This initiative aligns with their broader mission to elevate the status and understanding of NFTs in the traditional art world.

Despite the recent controversies and fluctuations in NFT trading volumes, the CryptoPunks collection experienced a notable resurgence in March. Two significant transactions set new sales records for the collection. On March 4, one of the rare alien CryptoPunks sold for 4,500 Ether (ETH), roughly equivalent to $16 million at that time, marking the second-highest sale price in the history of CryptoPunks.

This record was soon surpassed. On March 20, another CryptoPunk piece fetched an even higher price of 4,850 ETH, valued at around $16.4 million during the transaction period. These remarkable sales underscored the enduring value and appeal of the CryptoPunks collection within the NFT marketplace.

While Yuga Labs’ new project faced criticism, the company’s decision to step back from actively managing CryptoPunks has been positioned as a move towards preserving its legacy. By committing to education and decentralization, Yuga Labs aims to respect the community’s sentiment while continuing to foster innovation in the NFT space.