Following a takedown notice from Larva Labs, CryptoPunks V1 has been delisted from OpenSea. Currently, CryptoPunks V1 is fighting a legal battle with Larva Labs.
The CryptoPunks V1 bears a stark resemblance to Larva Labs’ CryptoPunks V2.
Moreover, V1 is derived from the same smart contract as the Larva Labs collection.
This is the second delisting of V1 from the largest NFT marketplace, OpenSea. As NFT collectors started moving towards CryptoPunks V1, Larva Labs blacklisted the collection.
According to the notice served to V1, the General Counsel of Larva Labs wrote that OpenSea has the right to delist “the infringing material.” Moreover, the notice says that U.S. laws mandate such provisions.
With the delisting of the collection, the V1 community is furious over the controversial move.
Why Was CryptoPunks V1 Delisted From OpenSea?
CryptoPunks V1 has struggled to gain authenticity due to its shared similarity with the Larva Labs’ collection.
Compared to the V1 collection, the Larva Labs collection CryptoPunks V2 was more popular. However, the V1 collection has been gaining significant traction on LooksRare and other rival sites in recent weeks.
Whales (entities with huge crypto tokens) are boosting the trading volume of V1.
The NFT marketplace, OpenSea, had banned V1 from its platform. However, with its increasing popularity, the platform overturned the ban.
OpenSea is already in the midst of a legal battle. Its move to revoke the ban will add to the troubles of the platform.
Also Read: The Growth of NFTs in 2021
What Is The Reason Behind The Legal Battle?
Intellectual Property Infringement is one side of the legal battle. But the main reason for the legal battle is related to the value of these CryptoPunks.
NFTs work on the simple principle of demand and supply. A low supply of a collection allows creators to set a higher price.
Hence, the Larva Labs’ CryptoPunks V2 collection is set at a higher price. The collection has a limited supply of 10,000 CryptoPunks, and the current lowest price for the same is 68.95 Ether.
Both V1 and V2 share striking similarities, so CryptoPunks V1’s listing on OpenSea will increase the overall supply of CryptoPunks.
The limited supply will double up to 20,000. This will, in turn, reduce the rarity and value attached to the NFT collection.
However, the V1 community has refused to back down after the delisting on the official discord server of V1, said creator Villanova. Eth has said that they are in touch with a top-tier IP Attorney in the U.S.
Furthermore, the creator says that they will challenge any attempt by Larva Labs to bully, intimidate or cause damage to V1 or V2 CryptoPunk holders.