A Brief History of NFTs: From CryptoPunks to Bored Apes
From a simple idea to a $69 million phenomenon
Can you imagine? A digital artwork sold for $69 million in 2021. To understand how this happened, we need to look back at how NFTs have evolved over more than a decade.
What are NFTs?
NFT (Non-Fungible Token) is like a “digital certificate” proving you own a unique digital asset. Think simply: just like you have papers proving you own a house, an NFT proves you own an image, video, or some digital asset.
2012-2013: The first seeds
Colored Coins – The pioneering idea
The story began with “Colored Coins” on the Bitcoin network. This was the first idea about creating digital coins with unique characteristics.
Example: Imagine you have regular coins, but some are painted red to represent company stocks, some blue to represent movie tickets. Colored Coins worked similarly – creating special Bitcoins to represent different assets.
2014: The world’s first NFT
“Quantum” – A historic turning point
On May 3, 2014, artist Kevin McCoy created the world’s first NFT called “Quantum” on the Namecoin blockchain. This was a simple digital artwork – an animated image with changing colored blocks.
Why it matters: This was the first time someone could say “I own this digital artwork” and have technological proof to back it up.
2017: The first boom year
CryptoPunks – Pixel art that made history
In June 2017, two programmers Matt Hall and John Watkinson created CryptoPunks – a collection of 10,000 pixel character images, each 24×24 pixels.
What made CryptoPunks special:
- Each character had unique traits: skin color, hairstyle, accessories
- Some were extremely rare: only 9 alien characters, 24 zombie characters
- Initially given away for free, now can be worth millions of USD
Example: Like having 10,000 different stickers, some very common (black beard), some extremely rare (green alien). The rarest stickers would have the highest value.
CryptoKitties – The game that paralyzed Ethereum
In October 2017, CryptoKitties launched – a game allowing players to breed, collect, and sell virtual cats. Each cat was an NFT with unique genes.
The CryptoKitties phenomenon:
- The game was so popular it slowed down the entire Ethereum network
- The most expensive cat ever sold for 246 ETH (about $100,000 at the time)
- First time NFTs were used in gaming and entertainment
Example: Like the old Tamagotchi game, but instead of just one, you could have hundreds of virtual cats, each sellable to others.
2018-2020: The quiet period and development
After the 2017 craze, the NFT market quieted down. But this was an important time:
- Digital artists began experimenting with NFTs
- Many new platforms emerged: OpenSea, SuperRare, Foundation
- NFT technology was improved and became more stable
2021: The year of global explosion
March 2021: Beeple and the $69 million shock
Digital artist Mike Winkelmann (artistic name Beeple) sold his work “Everydays: The First 5000 Days” through Christie’s auction house for $69.3 million USD.
Why it was shocking:
- First time an NFT was sold through a traditional auction house
- Beeple went from a relatively unknown artist to one of the 3 most expensive living artists
- Global media covered NFTs extensively
Bored Ape Yacht Club – The symbol of NFTs
In April 2021, Yuga Labs launched Bored Ape Yacht Club (BAYC) – 10,000 images of bored apes with different accessories.
Why BAYC succeeded:
- Not just images, but “membership cards” to an exclusive club
- Owners got to participate in special events and private parties
- Many celebrities bought them as profile pictures: Jimmy Fallon, Paris Hilton, Steph Curry
Impressive 2021 numbers:
- Total NFT trading value: $13 billion USD
- “NFT” was chosen as word of the year by Collins Dictionary
- Millions of people learned about NFTs for the first time
Other famous collections
Notable names:
- Azuki: Japanese anime characters
- Pudgy Penguins: Cute penguins
- Cool Cats: Cats with hip-hop style
- Mutant Ape Yacht Club: Mutated version of BAYC
- NBA Top Shot: Basketball moments from the NBA
Expanded applications:
- Ethereum Name Service (ENS): .eth domains as NFTs
- Metaverse: Virtual land in digital worlds
- Music NFTs: Musicians selling albums as NFTs
- Utility NFTs: NFTs with real functions like movie tickets, membership cards
2022-2025: After the craze
Current reality:
- The NFT market has “cooled down” compared to its 2021 peak
- Many NFT projects have lost value
- However, practical applications of NFTs continue to develop
- NFTs are being integrated into games, metaverse, and other industries
⚠️ Lessons from NFT history
Notable points:
- Unstable value: Many once-expensive NFTs have now seriously lost value
- Cyclical development: NFTs have periods of boom and bust
- Technology continues to evolve: Despite price drops, NFT technology continues to improve
- Real applications matter more: NFTs have long-term value when solving real problems
💡 Tips from history:
- Don’t buy NFTs just because of FOMO (fear of missing out)
- Research the team and vision of the project
- Treat NFTs like art collecting, not financial investment
- Only spend money you can afford to lose completely
Conclusion: The journey from experiment to phenomenon
NFTs have taken an amazing journey from Colored Coins in 2012 to million-dollar Bored Apes. From simple technical experiments, NFTs have become a global cultural phenomenon, changing how we think about digital ownership.
Important milestones:
- 2014: First NFT “Quantum”
- 2017: CryptoPunks and CryptoKitties paved the way
- 2021: Beeple’s $69 million changed the world
- Present: NFTs seeking sustainable real-world applications
Although the market has ups and downs, NFT history shows this technology has and continues to reshape how we interact with digital assets. The future of NFTs may not look like the 2021 peak, but will certainly continue developing in new and interesting directions.
NFT history is still being written. Every day brings new projects, new applications, and new ways to use this technology.
