CryptoPunks NFT burned and reborn on Bitcoin network

CryptoPunks NFT, specifically CryptoPunk #8611, with an approximate value of $95,000, was intentionally destroyed on the Ethereum blockchain and symbolically linked to an Ordinals inscription on the Bitcoin blockchain. This act of burning the NFT was initiated by the community to establish a set of Ordinals inscriptions that would represent fractional ownership in the CryptoPunk.

CryptoPunks NFT burned and reborn on Bitcoin network

For the first time, an Ethereum-based CryptoPunks NFT has been intentionally “migrated” to Bitcoin. This involved removing it from circulation on the Ethereum blockchain and associating it with a newly created Ordinals inscription on Bitcoin.

Over the weekend, CryptoPunk #8611 was sold for approximately 55 ETH ($95,000). Shortly after, it was burned and recreated as Ordinals inscription 12,456,749 on Bitcoin, replicating the original Ethereum CryptoPunk’s image. Ordinals, launched earlier this year, allows for the creation of NFT-type assets on Bitcoin despite its lack of native support for tokens and NFTs.

The BRC-721E token standard, introduced in May, facilitated the “teleburning” process, acting as a bridge for users to transfer NFTs from Ethereum to Bitcoin Ordinals. It’s important to note that this move is one-way, meaning the NFT cannot be returned to the Ethereum ecosystem. Furthermore, the new token created on Bitcoin does not possess the same privileges as those in the original collection.

The initiative to migrate the NFT was a collaborative effort led by Nathan Stein, a developer at Wolf Capital, with support from the Bitcoin Bandits NFT collection community. Around 150 individuals pooled their funds to demonstrate the symbolic transition of valuable assets from Ethereum to Bitcoin.

The objective is to establish a series of Ordinals inscriptions representing fractional ownership in the CryptoPunk, even though the NFT itself is no longer owned on its original chain.

When an asset is burned, it is permanently stored in an address beyond anyone’s control. CryptoPunk #8611 was sent to such a burn address, which also holds over $50 million worth of ether and other tokens that are no longer spendable.

While this intentional migration of a CryptoPunk from Ethereum to Bitcoin appears to be the first of its kind, a similar transition has occurred in the past. In March, CryptoPunk #685, owned by Brandon Riley and valued at 77 ETH ($129,000), was mistakenly sent to a burn address, resulting in significant losses for the trader.

In response to this incident, community member Olliesblog resurrected the NFT on Bitcoin, making it the first CryptoPunk Ordinal. Riley expressed gratitude to Olliesblog for resurrecting Punk 685, which now exists on the Bitcoin blockchain as an ordinal, inscribed on a satoshi from over a decade ago.

In another instance in February, Bitcoin-focused investor Jason Williams burned Bored Ape #1626 from the Bored Ape Yacht Club NFT collection to create an Ordinals inscription. Williams stated that the NFT community is transitioning to BTC, where Ordinals have introduced true scarcity to collectibles. He permanently inscribed “The Blonde Don” BAYC #1626 on the world’s scarcest and most secure chain, eradicating its presence on ETH using teleburn.

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