SNEAK PEEK
- The prices of Ordinal Punks are going strong as the Bitcoin-based NFT collection.
- The high selling prices have been termed as money laundering on Reddit.
- The reason behind the limited 100 NFTs is the hefty cost of creating and taking Ordinals on the Bitcoin blockchain.
The Ordinals Punks Non-fungible tokens‘ prices have jumped as noted by PROOF Collective.
The sale of #27, which earned 1.93 BTC was mentioned in a tweet along with one more sale which happened after it and made 2.06 BTC.
According to a Reddit poster, on February 9, 2023, the Ordinal Punk with the engraving number 620 was sold for 9.5 BTC. This Punk is #94. Certain commenters have called the high selling price as either wash trading or money laundering with an aim of controlling the price floor.
There are sharp similarities between CryptoPunks and Ordinal Punks on Ethereum. For instance, they both are algorithmically generated and have a retro pixel art style.
The Director of Research at PROOF Collective shared that creating as well as getting Ordinal Punks on the Bitcoin blockchain is costly.
Ordinal Punks are traded between Bitcoin node operators in a procedure that has the project founder involved.
The procedures depend on operating a full node to transport one from one wallet to another and purchase one. Hence, Escrow services are utilized by individuals. Simply put, it involves sending the funds to the project’s founder who gets the Ordinal. @dotta defined the procedure of tooling as extremely bad.
The Director of Research at PROOF Collective said that enhancements related to the procedure are expected to decentralize the sale process.
He added:
Interesting to see how this goes; it’s a little bit lofty, seems a little bit square peg, round hole, but you’re still seeing a lot of interest; obviously, Bitcoin has a ton of provenance.
Taproot soft fork is the reason behind Ordinal Punks’ existence since it involved the functionality to grow block sizes beyond the standard limit of 1 MB to fit JPEGs and more similar artifacts which are referred as inscriptions.
Using Bitcoin for non-monetary transactions has been a matter of debate. According to critics, it will increase the transaction fees; however, supporters believe that Ordinals define freedom.
