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Should You Buy A Bitcoin Punk?

10k BTC Collection selling in the tens of thousands

AuthorAuthor

Von Doom & Gannon Breslin
February 10, 2023

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Here is the breakdown of today's newsletter:

⛓️ Bitcoin Punks make waves📈 Chart of the week

  • The price of OnChainMonkey NFTs is skyrocketing after devs create Bitcoin duplicates. (DC)

  • MoonPay and NFT Marketplace LooksRare form new partnership (CD)

  • PROOF announced a plethora of incredibly talented artists for their upcoming Grails III collection. Check out the list in their thread. (@proof_xyz)

  • Hermes wins lawsuit against MetaBirkins NFTs. (NYT)

  • AnotherBlock drops NFT that grants holders shares from a hit Rihanna song. (CD)

  • With the massive success of Reddit NFT Avatars, the Super Bowl has decided to team up with Reddit to drop a collection. (CT)

  • The SEC is shutting down crypto exchange Kraken's staking services and slapping them with a $30 million fine. (CNN)

  • MMA fighter Dillon Danis was caught red-handed promoting multiple fake crypto and NFT projects spun up by famous Youtuber Coffeezilla. (BY)

Bitcoin Punks Make Waves 🔥

Did I just hear Bitcoin NFTs?

Yes, you heard that correctly. But first, let's get some things straight because there is a lot of confusion.

  1. Bitcoin NFTs are NOT like ETH or SOL NFTs.

  2. A Satoshi is the smallest unit of Bitcoin feasible (1 satoshi = 0.00000001 BTC)

  3. It was discovered that you can inscribe images, text, and more onto a Satoshi and thus Bitcoin NFTs was born (an inscribed Satoshi is called an 'Ordinal'

  4. There is no traditional marketplace to buy/sell/trade Ordinals yet so the only way you can do so is if you are running a Bitcoin node on your computer

  5. Here is a guide on this if you are completely lost on what we are saying.

@seanbonner gives a great thread on what is going on. Here is an excerpt from it that is definitely worth reading:

💡 What Happened?

Earlier this month a 10k collection of Bitcoin Punks was launched and the market was in a complete frenzy. Some of these punks have now sold in the hundreds of thousands like the original Ethereum collection. 

💡 The DropOrdinal Protocol uses Bitcoin's Taproot upgrade to store NFTs through inscriptions. The popularity of the Ordinal Punks collection has sparked a debate in the bitcoin blockchain community, with some believing it should only be used for financial transactions and others seeing it as a positive catalyst for development (a move into NFTs and more). However, Bitcoin analyst Sam Callahan warns that if the demand for inscriptions lasts, it could impact other Bitcoin use cases and distort the fee market away from its use as a monetary protocol.

Chart Of The Week 📈

This is a perfect visual to show how impactful the Reddit avatar NFTs were to onboarding more people into the space. 

Sponsored Content: This newsletter was sponsored by

Disclaimer: The Drop DOES NOT provide financial advice. All content is for informational purposes only. The Drop is not a registered investment, legal, or tax advisor or a broker/dealer. Trading any crypto-related asset is extremely risky and could result in significant capital losses.

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