On Monday, the trading volume of CryptoPunks, one of the sector's most popular nonfungible token (NFT) collections, surged by 1,847% over 24 hours. Over $1,226.68 Ether (ETH) worth of Punk NFTs was traded during that time. The surge in interest appears to be tied to luxury jewelry retailer Tiffany & Co. launch of its own NFT collection, which has a special perk for Punk holders.
Dubbed "NFTiffs," the collection consists of 250 digital passes. Anyone can purchase NFTiffs, which are minted on the Ethereum blockchain. However, CryptoPunk holders can redeem the NFT for a customized-jewelry experience. After purchase, Punk holders can elect to receive a custom-designed pendant and an NFT digital artwork that resembles the final jewelry design. These are crafted by the company's in-house artisans and inspired by the Punks NFT collection.
Depending on the color palette of the Punk NFT, Tiffany will create pendants using at least 30 gemstones such as sapphires, amethyst, spinel and diamonds with its frame in 18karat rose or yellow gold. Buyers will receive a rendering of their piece by October, with anticipated physical delivery in 2023.
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Each NFTiff will cost 30 Ether, which covers the cost of the NFT, custom pendant and chain, as well as shipping and handling. There is a limit of three passes per customer, with the sale commencing on Aug. 5 at 10:00 am and a redemption deadline of Aug. 12 at 9:00 pm Eastern Time.
At the time of publication, CryptoPunks have a floor price of 74.75 ETH, meaning that jewelry enthusiasts must pay around $125,000 for a Punk NFT on top of 30 ETH for an NFTiff if they wish to participate in the custom jewelry experience.