\u201cCan someone explain to me why NFT \u2018clones\u2019 are selling for so much?\u201d asked Redditor LittleDoofus a couple of months ago.<\/strong><\/p>\n NFT clones cash in on successful NFT collections by releasing similar or even identical copies of the art under similar sounding brands. LittleDoofus wanted to know how we have suddenly ascribed so much value to NFTs<\/a>, let alone mere copies of celebrated NFT artworks<\/a>?<\/p>\n LittleDoofus\u2019 post continued<\/a>:<\/p>\n \u201cOk so I kinda understand how someone might see the CryptoPunks or Ether Rocks projects as valuable digital collectibles, but what\u2019s going on with the craze over the clone projects? I see so many lazy CryptoPunks clone projects (no affiliation to Larva Labs) with no-name \u2018artists\u2019 behind them selling for a lot.. why? Is it just scammers trying to scam each other?\u201d<\/p>\n It\u2019s a good question: Where do NFT clones fit in open-source crypto culture? I decided to ask long-time crypto developers and the clone creators themselves for their thoughts.<\/p>\n First, by \u201cclones\u201d I\u2019m referring to exact copies of well known projects: Think of CryptoPhunks, which simply flipped the images and literally mirrored the original iconic NFT CryptoPunks series that now sells for millions a piece. CryptoPhunks sell for a little less than an Ether.<\/p>\n Clones also exist across different blockchains. SolPunks<\/a>, for example, was built on the Solana blockchain and \u201cis in no way affiliated with Larva Labs and\/or CryptoPunks\u201d built on Ethereum. But, the punks look the same.<\/p>\n \u00a0<\/p>\n \u00a0<\/p>\n \u00a0<\/p>\n \u00a0<\/p>\n There are also NFT \u201cderivatives\u201d that cash in on the popularity of a well known brand by using a similar \u201cpunk\u201d or \u201cape\u201d name. These clones are copycats, imposters, tributes, spinoffs, or rent seekers, depending on who you ask. CryptoFUNKS took the name and applied it to hand-drawn stick figures for example.<\/p>\n Recreation and remixing also intersect with the open source ethos of crypto. Create stuff, open it up and encourage others to build on your efforts. SushiSwap began as a clone of Uniswap\u2019s code and then forged its own path.<\/p>\n Crypto venture and community builder Daniel Bar points to the current boom in generative art as an example of copying stuff that\u2019s popular.<\/p>\n \u201cIt\u2019s a bit like ICOs in 2017, mimicking grows like wildflowers,\u201d he says. \u201cBut it does help the industry learn and develop\u201d.<\/p>\n He concedes that clone NFT projects might attract some money that would otherwise go to the original.<\/p>\n \u201cThe people who buy the clones could have bought the real ones so, arguably, they may be devalued, say if one less bidder bids,\u201d he says. \u201cBut, the real ones have actual perks that the fakes don\u2019t so it\u2019s like buying a fake Rolex.\u201d The Bored Apes Yacht Club (BAYC) included access to exclusive parties. CryptoPunks were used as tickets<\/a> to a free NFT Meebit drop. That can\u2019t be cloned.<\/p>\n Crypto communities are also complex, ideological and multi-faceted. And while the unique strength of blockchain is authenticating<\/a> \u201cstuff\u201d to enable trust between partners there is, of course, much speculative spending on digital assets in the current bull market, informed by memes and counter-culture. Valuable clones do make sense in this context.<\/p>\n But, let\u2019s start at the beginning. What the funk\/phunk is a nonfungible token, or NFT? This definition frames the whole conversation about the emergence of NFT clones and why people buy them.<\/p>\n \u00a0<\/p>\n \u00a0<\/p>\n \u00a0<\/p>\n \u00a0<\/p>\n As everyone knows, 2021 is the year of the NFT. Literally, as NFT is Collins Dictionary\u2019s word of the year<\/a>. Everyone from Canadian ice hockey deity<\/a> Wayne Gretzky to brands<\/a> such as Marvel comics have launched their own collections.<\/p>\n The potential collectible angle for original projects is clear, but for clones of a popular NFT series, it\u2019s more uncertain. We do know that clone projects have value and rake in funds, (even if not at the level of their originals). Interestingly, almost nobody is being sold a fake believing it is the real thing.<\/p>\n \u201cNonfungible\u201d means that the item is unique and can\u2019t be copied. Every NFT is a unique token, and while it\u2019s easy to copy the related image, the creator\u2019s wallet address cannot be faked, and \u201cminting\u201d is a direct line of provenance. \u201cMinting\u201d an NFT registers a particular user as its creator and the first owner of that NFT token.<\/p>\n (As an aside, hackers may be able to\u00a0clone<\/a> an NFT known as \u201csleepminting,\u201d essentially changing the chain of ownership. The developers I spoke with weren\u2019t sure this was actually possible though.)<\/p>\n So, an NFT is basically a form of notary service, a tokenized tool for provenance, establishing and certifying the creator\u2019s wallet address. They can help artists, musicians and others prove they created something.<\/p>\n Michael Kong, CEO of Fantom Foundation, says NFTs show \u201cthe full audit trail, level of authenticity attached to each unique token that you can see previous ownership \u2014 people ascribe great value to that.\u201d<\/p>\n It means much more than copied images of pixelated punks. The possibilities for immutable provenance wrapped in an NFT are just starting to be explored. NFTs can wrap any data securely. That\u2019s why true open source believers are keen to see progress in developing the space<\/a>.<\/p>\n \u00a0<\/p>\n \u00a0<\/p>\n \u00a0<\/p>\n \u00a0<\/p>\n CryptoFUNKS and Sad Frogs District are two notable examples of copyright claims leading to copyright claim takedowns of cloned projects. The most well-known NFT marketplace Open Sea\u2019s de-listing of NFT clone CryptoFUNKS in October ironically probably only increased its popularity. OpenSea had received<\/a> a takedown notice from Larva Labs requesting the delisting due to copyright infringements. It was a similar story with PolygonPunks in August, though they reappeared in September<\/a>.<\/p>\n In August, OpenSea also announced the delisting<\/a> of the 7,000 minted images of the Pepe the Frog in Sad Frogs District on its Discord channel for copyright infringements filed by the character\u2019s creator, Matt Furie. This angered the community who had already invested<\/a>\u00a0$4 million in the project and was worried it would potentially leave the NFTs worthless.<\/p>\n Bokky PooBah is a well-known open-source advocate in the crypto world. A Sydney-based Malaysian, he fell in love with the tech and its ideological underpinnings and has offered free blockchain coding lessons for years. His coding academy has no corporate support and no sponsorships. He joined crypto to build and continues to recruit people to build experimental things. PooBah is cited on the bottom of the CryptoPunks website as a resource for their project.<\/p>\n The de-listing of CryptoPhunks had a \u201cStreisand Effect, making it more popular,\u201d according to PooBah. The phrase refers to when famed singer Barbara Streisand tried to suppress information relating to her Malibu home but simply promoted massive interest in it. PooBah himself then \u201chad to buy a CryptoFUNK\u201d on principle. \u201cRestrictive licensing hinders the community,\u201d bemoans PooBah.<\/p>\n He explains that NFTs are \u201csuper powerful\u201d and is building<\/a> a decentralized NFT exchange \u2014 where NFT creators can ask for ongoing royalties entries in a ledger.<\/p>\n One theory about NFT knock offs is that they are equivalent to forks of an OS or blockchain that, in fact, increases the value and credibility of the original collection. This view suggests clones are actually driving NFT prices higher.<\/p>\n After all, as the \u201cright-click save brigade\u201d points out, copies abound with NFTs. These types argue that \u201cNFTs are worthless because they can be replicated with a screenshot.\u201d But, PooBah argues passionately that they are missing the point.<\/p>\n \u201cIn the end, for time immoral, the ownership is strong\u201d and that\u2019s the key point. \u201cOwnership is done on a blockchain, it doesn\u2019t matter if people will copy any images anyway,\u201d he says.<\/p>\n For PooBah, the highest earning artist \u201cBeeple is boring \u2026 in terms of technology use.\u201d It\u2019s tech progress that excites him. Imaginative code is the art.<\/p>\n \u00a0<\/p>\n \u00a0<\/p>\n \u00a0<\/p>\n \u00a0<\/p>\n Kong agrees, pointing out that \u201cright, click and save arguments are true for all artworks. But it is not actually the same. Value is subjective, the value is in the eye of the holder, such as perceived rarity.\u201d<\/p>\n He says it\u2019s \u201ctotally expected, it\u2019s easy to save a file and produce another NFT\u201d but the argument makes more sense the other way around: \u201cCopyright can be easily infringed, but with NFTs, it is actually easier to see who created the artwork.\u201d<\/p>\n PooBah believes that the \u201clicensing of images could be more permissive\u201d and he argues that \u201copen licensing trains more people by creating learning tools so that anyone can go to source code and refer to it to build something.\u201d He is philosophical about clone NFT projects, citing the benefits of adoption and learning. This is always the party line for the decentralized devotees.<\/p>\n The creators all have their own stories. David Lawrence is a 29 year-old Orlando-based photographer who started a project called \u201cPunk Portraits.\u201d\u00a0While it cashes in on the CryptoPunk phenomenon, clearly has its own style.<\/p>\n Punk Portraits are CryptoPunks in the flesh. It\u2019s 1000 different real life \u2018Punks\u2019 with the same traits but embodied by real people,\u201d he explains. \u201cMy goal with portrait photography is to create images that represent one\u2019s truest self.\u201d<\/p>\n It\u2019s hard to judge someone truly believing in their art while also cashing in on the Punk name. He has been a photographer for over ten years. Punk Portraits was his \u201cfirst foray into both the NFT and fictional (art) world.\u201d<\/p>\n For Lawrence, Punk Portraits are, of course, not \u201ca clone, but a derivative.\u201d<\/p>\n \u201cCryptoPunks set the gold standard for what I believe an NFT collection to be. It\u2019s simple, yet unique and each piece can stand on its own\u2026 It\u2019s the Rolex of NFTs.\u201d<\/p>\n He says his work is like a homage to a favorite piece of art.<\/p>\n \u201cWe wanted the same detail and allure, but then to imagine what it would be like if the punks were more than just pixels. What if they came and took on a real life persona?\u201d PooBah bought one, of course, in \u201cprotest to Larva Lab\u2019s image IP restrictions\u201d. To date, there have been no IP infringements raised against Punk Portraits.<\/p>\n \u00a0<\/p>\n \u00a0<\/p>\n \u00a0<\/strong><\/p>\n \u00a0<\/p>\n Clayton Dixon is the New Zealand-based creator of Fast Food Punks<\/a>, which leaps from the original CryptoPunks to a familiar McDonalds themed band of misfits. One collection also raised $574,000 for the Ronald McDonald House in the U.S., a charity for sick kids.<\/p>\n \u201cETH also went up at the time, so it amounted to about $700 thousand for charity.\u201d<\/p>\n<\/blockquote>\n There\u2019s a genius to his creations, along with some luck. Bitcoin crashed in May 2021. \u201cSo memes of holders of Bitcoin having to go back to McDonald\u2019s to work went viral\u2026 which made it a popular series\u201d, he says fortuitously. \u201cI was making them by hand. I had no idea what I was doing and then uploaded them to OpenSea. They were selling instantly.\u201d<\/p>\n Another punk clone creator, Berk \u00d6zdemir, is the Turkish artist of Bastard Gan Punks, and he likes to use the music metaphor of \u201cremixing.\u201d<\/p>\n \u201cA remix recontextualizes the idea or a notion and gives it a new meaning. The original still stays where they are. Derivatives are built on top of it, sometimes as a variation or sometimes as a protest. Every artifact has marks of their predecessors.\u201d<\/p>\n He was a fan of CryptoPunks but \u201ccouldn\u2019t afford them so I thought I could make some for myself.\u201d His creations \u201cturned out pretty ugly (but awesome) looking and this gave me the idea of being a \u2018bastard,\u2019 a new generation born from cool looking, \u2018elite\u2019 parents. I started being goofy and created a persona concept around them with silly descriptions.\u201d<\/p>\n He was \u201cstunned with the attention\u201d it received, \u201cand the community built around\u201d the project. After seven months, he left the governance of the project and brand to the BASTARD DAO. \u201cBut, I still enjoy creating new lore for it and making derivative works and encourage people to create.\u201d<\/p>\n Longevity, he argues: \u201cdepends on what the intention behind the \u2018clone\u2019 is and the end product. If a \u2018clone\u2019 has no message or a solid standing point, they usually are phony cash grabs. The market is oversaturated by projects wanting to sell out with copy and paste ideas without having any visions or plans.\u201d<\/p>\n \u00a0<\/p>\n \u00a0<\/p>\n \u00a0<\/strong><\/p>\n \u00a0<\/p>\n Communities built on Discord groups are important for NFT projects. Carefully curated plot lines are crafted so the NFTs didn\u2019t just emerge out of nowhere. Discord groups operate for the crypto native fans of an artists, drop in ones. There are certainly some very obsessive or perhaps devoted people waiting for news of new art or a possible airdrop.<\/p>\n Internet meme culture is a key driver of interest for NFTs. Humor is important to the world of clones\u2026 take the Dolly the NFT clone sheep clone, named<\/a> after the famous Scottish sheep clone first cloned in 1996. And a limited series of Kimmie NFTs depicting<\/a> North Korean leader Kim Jong-Un in various forms of dress, which also comes with a leadership title to use in \u201cKimdom.\u201d<\/p>\n But, as with anything that engenders high passion, these debates can turn sour. Ex-Google employee \u201cChunke Monke\u201d says he was the subject of threats from supporters of a certain NFT release after he began publishing articles that are critical of what he calls \u201ctrademark trolls\u201d and their attempts to trademark their NFTs. The \u201ctrademark trolls\u201d allegedly attacked his own satirical NFT release. In his view, these \u201care actors stifle innovation through excessive IP protection.\u201d<\/p>\n \u201cChunke Monke\u201d is now a vocal critic of big tech. He stumbled his way into crypto and NFTs after his last startup failed and he found Web 3.0 particularly alluring. According to Chunke Monke, a clone NFT trademarking their clone NFT is an affront to open source innovation and \u201cderivative creative possibilities,\u201d but the doxing of his true identity scared him. Such is the extreme passion in this space.<\/p>\n Chunke Monke bemoans this aggressive culture among some clone projects.<\/p>\n \u201cI\u2019ve seen many Clone NFTs Discords. They are not fun. There\u2019s no love or adoration for the art or the story because it\u2019s all hollow. There\u2019s no meaning and no durable community.\u201d<\/p>\n<\/blockquote>\n But, \u201cparody NFTs can retain a lot of value, maybe more than the original,\u201d if they have a certain sense of good humor,\u201d he says.<\/p>\n In street art culture \u2014 which also offers a huge spectrum of angry teenager tags to serious political statements \u2014 painting over others\u2019 work is part of the rules. It always seemed to me that Banksy\u2019s huge prices at the auction distorted the roots of a protest movement born on the trains of Phillie in the 1970s. In fact, throughout art history, students were taught by copying the works of their masters.<\/p>\n For those in the art world selling T-shirts and mugs and aprons with reproductions of their work was once sacrilege for \u201cserious\u201d artists. Is that analogous to clone NFTs of art?<\/p>\n Like the \u201cTradArt\u201d or traditional art, it\u2019s not winner takes all. There are many competitors and much space for many winners and losers. \u201cNFTS will be here as long as the blockchains last,\u201d says PooBah. The copyright arguments are there but \u201cgoing against clones is against open source a little.\u201d<\/p>\n So why do copycat clones attract such high prices? \u201cPure speculation,\u201d says Web 3.0 developer Kong, \u201cbuying clones in the hope someone else will sell it for a greater amount.\u201d The \u201cpandemic also shows how many people can make money out of thin air,\u201d notes PooBah.<\/p>\n Moderating these predictions, Chunke Monke notes why these valuations are hard. The \u201ctruth is \u2014 there are no right answers in NFT investing, but there are a lot of wrong answers. Valuing based on comparables (\u201cClone Punk should be X percentage value of CryptoPunk\u201d) like in traditional finance, makes no sense.\u201d<\/p>\n For the record, in street art culture, tagging a scribbled signature on a detailed major piece was always sacrilegious.<\/p>\n For \u00d6zdemir, the NFT clone creator, these are the rules :<\/p>\n \u201cI strongly encourage people to steal my art and create things with them. I think the world needs more fun and ideas.\u201d<\/p>\n<\/blockquote>\n \u00a0<\/p>\n \u00a0<\/p>\n \u00a0<\/p>\n \u00a0<\/p>\n<\/div>\n![\"CryptoPhunks\"](\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2021\/12\/Cryptophunks.jpg\")
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Emerging digital property rights<\/h4>\n
Open source revolution driving high prices, even for Clones<\/h4>\n
Forked it?<\/h4>\n
\u201cClone\u201d punk creators<\/h4>\n
![\"Punk](\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2021\/12\/PunkPortrait-143.jpg\")
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![\"\"](\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2021\/12\/bastard-gang-punks-300x107.png\")
NFT community culture has a sinister side too<\/h4>\n
![\"The](\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2021\/12\/nft-1.png\")
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Prices symbolize the revolution?<\/h4>\n
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