I didn't expect PunkStrategy to really take off.

Original author: Cookie, BlockBeats

Reprinted: Oliver, Mars Finance

On the Ethereum mainnet, a coin named $PNKSTR has risen by about 160% in the past 2 days, with its market cap once exceeding 50 million USD, becoming a bright spot in an extremely dry on-chain market. Currently, the token has slightly retreated, with a market cap of approximately 43 million USD.

The full name of $PNKSTR is “PunkStrategy”, which completes the NFT and token revolving wheel by trading CryptoPunks NFTs. Each $PNKSTR transaction incurs a 10% fee, with 8% deposited into the protocol. Once the funds in the protocol pool accumulate enough to cover the purchase of CryptoPunks, the contract will automatically buy a floor-priced CryptoPunk and list it for sale at 1.2 times the purchase price. After a successful sale, the obtained ETH will be used to buy and burn $PNKSTR.

Currently, the fee income from $PNKSTR has approached 700 ETH, and the complete buy-sell transaction process for 12 CryptoPunks has been completed, with a total of approximately 2.8% of the total supply of tokens being burned.

Basically, this is the hottest topic in the NFT circle recently, with active NFT KOLs and various Twitter users displaying CryptoPunks discussing it extensively. Interestingly, the big NFT KOL @waleswoosh tweeted on September 15 that $PNKSTR would soon disappear when its market value fell below 10 million USD, but a week later, $PNKSTR skyrocketed.

The deployment of $PNKSTR 's dev is not by an unknown entity, but by TokenWorks, a team that has been actively involved in various on-chain projects, composed of a group of developers who have long been active in the blockchain space. TokenWorks' official Twitter account follows 5 people, each of whom is a familiar veteran in the on-chain world, such as @surfcoderepeat, who previously worked on Lotus on Arbitrum and FrenPet on Base.

Before $PNKSTR , TokenWorks' most famous and successful project was the “Black Hole Coin” $O on the Shape network, and beeple even tweeted to promote $PNKSTR .

Before the launch of $O , TokenWorks had already released 10 on-chain projects, each featuring unique on-chain gameplay.

Following the success of $PNKSTR , on September 20, TokenWorks further launched NFTStrategy, introducing tokens for a total of 5 NFT projects: BAYC, Pudgy Penguins, Moonbirds, Meebits, and CryptoDickbutts. The mechanism is the same as $PNKSTR , except that from the 10% fee charged on transactions, 1% is paid as royalties to the NFT series owners, and 1% is used to buy and burn $PNKSTR.

The 5 new tokens are currently performing similarly, with none exceeding a market capitalization of 3 million dollars. However, in the past 24 hours, the token corresponding to Meebits has had the highest trading volume, approximately 1.6 million dollars, and currently holds a slight lead in market capitalization.

When NFTStrategy was just launched, in order to prevent sniper bots, the purchase fee started at 95% and decreased by 1% every minute, eventually stabilizing at 10%. Due to a large number of early purchases, the protocol quickly accumulated fees exceeding the floor price NFTs of the corresponding NFT series, providing arbitrage opportunities. 0xa3d297423b17a3894dddd582dc41ff20e237ab75 netted 181.706 ETH, or approximately $813,400, by buying and selling 10 BAYC, 7 Moonbirds, 5 Pudgy Penguins, and 4 Meebits within three hours.

The reason is not a flaw in the contract, but rather that the project team did not deploy the corresponding operations. CryptoPunks has an on-chain market, which causes new tokens to differ slightly in the buying and selling process of NFTs compared to $PNKSTR . Due to the absence of an on-chain market, new tokens can only ensure that the purchased NFT can be reliably obtained through the contract, and anyone can call the contract to trigger specific purchases.

It may be due to the team's workload overload that TokenWorks did not deploy the corresponding bots to ensure immediate purchases when funds reach the minimum buyable amount. However, this issue does not seem to have affected the performance of the new tokens, and Yuga Labs' blockchain department VP @0xQuit also stated that he has personally deployed a bot to address this problem.

Today, TokenWorks once again announced that starting this Friday, a new NFTStrategy token will be launched every day for a week. The NFTStrategy tokens for a total of 7 projects, including Chromie Squiggles, CrypToadz, Goblintown, Checks, Max Pain by Xcopy, Good Vibes Club, and Milady, will be online soon.

In the future, TokenWorks will also allow any NFT series owner to deploy their own series of NFTStrategy tokens.

The discussion about NFTStrategy remains lively. Yesterday, a tweet proposing that OpenSea spend $2 million to purchase tokens related to NFTStrategy sparked considerable discussion.

In summary, we can make a conclusion about the success of $PNKSTR :

A well-known development team

Gain widespread recognition among the NFT player community

Compared to the fast-paced meme players, NFT players are more enthusiastic about accepting NFT-related memes and on-chain experimental gameplay.

Although NFTs have been sluggish for a long time, the prices of top NFT collections have stabilized within a relatively narrow range. While the glory is no longer there, they have accumulated enough stability and audience.

However, this is ultimately a form of “left foot stepping on right foot” stimulation; how long it can be sustained needs to be tested over time.