Towards the end of art: Legendary NFT CryptoPunks are transferred to NODE Foundation

One of the most valuable Non-Fungible Token collections globally, CryptoPunks, has been officially acquired by the non-profit organization Infinite Node Foundation, with a funding injection of $25 million. This historic acquisition not only infuses new energy into the digital art world but also symbolizes CryptoPunks' entry into a decentralized and community-driven future. The non-profit organization Infinite Node Foundation (NODE) announced yesterday that it will acquire the intellectual property rights of the famous Non-Fungible Token collection CryptoPunks from Yuga Labs, receiving up to $25 million in establishment funding. NODE emphasized in its official tweet that the foundation will become the "most well-funded, digital art-focused non-profit organization in the United States": Our role is to establish a networked framework that allows digital art like CryptoPunks to thrive in both the digital realm and the context of art history. CryptoPunks was created by Larva Labs in 2017, designed by artists Matt Hall and John Watkinson as 10,000 algorithmically generated pixel characters, considered a pioneering work in the Non-Fungible Token world. NODE referred to it as an "existence that changed the art world", with cumulative sales exceeding $3.07 billion and a market value close to $1.2 billion. In 2022, a single piece was sold for nearly $24 million. In 2022, the IP ownership of CryptoPunks transferred to BAYC Non-Fungible Token issuer Yuga Labs, which also purchased the Meebits series but resold it in early 2025. As a non-profit organization established this year and focused on supporting digital art development, NODE plans to continue operating CryptoPunks in a decentralized manner, returning to community-driven and artistic essence. They will establish an advisory team including Larva Labs' two founders, Yuga Labs' Wylie Aronow, and Art Blocks founder Erick Calderon, and hire consultants to assist with transition. Notably, NODE plans to establish a permanent exhibition space in Palo Alto, California, displaying all CryptoPunks collections and running a complete Ethereum node to ensure long-term preservation and stability of digital assets. After the news broke, the Non-Fungible Token community expressed support. Punk #1111 collector VonMises14 lamented: "CryptoPunks IP has finally found its endpoint, no longer corrupted by commercial interests." NODE promises to continue the original spirit of CryptoPunks, maintaining it as "one of the most significant art movements of this century". With the combination of decentralized governance and artistic spirit, CryptoPunks has reshaped imagination about the future of digital art and will continue to be preserved.

Toggle

Suddenly Closing NFT Business RTFKT, Buyers Furiously Sue

Last Friday US time, a group of consumers who purchased Nike-related Non-Fungible Tokens (NFTs) and other crypto assets filed a class-action lawsuit in New York court. The plaintiff representative, Jagdeep Cheema from Australia, pointed out that Nike suddenly closed its subsidiary RTFKT in December 2024, directly causing these NFTs' demand to collapse rapidly, resulting in significant losses for holders.

The lawsuit emphasizes that if they had known in advance that these NFTs were actually unregistered securities, and that Nike would ultimately "pull the rug," they would absolutely not have purchased these assets at high prices.

(RTFKT Comes to an End! Announcing Closure Three Years After Nike's Acquisition, Will Launch Memorial Website)

Legal Status Unclear, Are Non-Fungible Token Buyers Bearing Risks?

Currently, the legal definition of NFTs under US federal law remains unestablished, and in recent years, multiple lawsuits have emerged regarding whether NFTs constitute securities. This Nike case similarly touches on sensitive regulatory issues.

The plaintiffs are seeking unspecified damages exceeding $5 million, accusing Nike of violating consumer protection laws in New York, California, Florida, and Oregon.

Nike Acquires RTFKT and Ends Operations in Just Three Years

Nike acquired RTFKT (pronounced "artifact"), known for digital fashion and virtual collectibles, in December 2021. At the time, Nike boldly claimed that RTFKT combined culture and gaming, representing "next-generation innovation".

However, on December 2, 2024, Nike suddenly announced the completion of RTFKT's business closure, merely emphasizing that the brand "inspired countless creators and projects" and stating that the innovative spirit would continue, but without providing specific guarantees to NFT holders.

Nike and Original Lawyer Currently Unresponsive

As of now, Nike headquarters has not responded to media comment requests, and the plaintiff's lawyer, Phillip Kim, has also declined to comment on case details.