Anon CryptoPunk Owner Launches NFT Fund, Betting on Ability Over Identity

Punk 6529, as the fund manager goes by online, has developed a reputation as a savvy NFT collector

article-image

Source: CryptoPunk 6529

share

key takeaways

  • Punk 6529, as the anonymous NFT collector is known, has more than 240,000 Twitter followers
  • The launch raises due diligence questions for investors accustomed to deeply parsing the backgrounds of fund managers

An anonymous CryptoPunk NFT owner with an influential Twitter following has launched a fund that invests in NFTs on behalf of institutional investors.

Punk 6529’s venture, confirmed by two sources with knowledge of the matter, represents one of the first such funds run by an unnamed portfolio manager — and is a validation of a metaverse world in which the reputations of pseudonymous whales are built upon their savvy in picking NFT projects and not their background.

Blockworks granted sources anonymity to discuss sensitive business dealings. Punk 6529 confirmed the fund launch but declined to comment further.

6529 NFT Fund, which has drawn the interest of institutional investors, including crypto fund-of-funds operators, started trading recently. The manager has not revealed the amount of capital raised.

Punk 6529, the owner of a slew of other rare, valuable NFTs, has more than 240,000 followers on Twitter, where they expound on everything from the future of the metaverse to regulation by the Securities and Exchange Commission (SEC) to wealth inequality

“The Metaverse will actually happen this decade,” Punk 6259 wrote. “If it is open, human innovation will flourish. If it is closed, we are digital serfs of sorts. We 100,000 or so people right now are the front-line in this battle and we have to do it ourselves.”

The account is also building a virtual museum, 6529 Museum, and operates a number of virtual galleries for viewing NFTs and digital photographs.

In addition, the investor has been involved in bids for high-profile NFT projects, including bidding on imprisoned Silk Road founder Ross Ulbricht’s collection, The Block reported. They’ve also owned one of the CryptoKiddies, which have sold for more than 100 ether each.

Due diligence questions

The fund raises due diligence questions for deep-pocketed limited-partners looking to invest, sources said. Institutions typically run detailed vetting processes before backing a manager, including scouring an individual’s background and checking references. One of the sources, who invests in crypto funds, said he did not know Punk 6529’s identity.

How long of a lockup on investor capital the fund will impose also isn’t clear. It could impose fairly modest, hedge-fund-like liquidity, or the vehicle could go the private equity route — favored by a number of real-world funds that invest in art — and hold investor cash for a much longer period.

“If you’re going to build it as more of a trading platform, you do it as a hedge fund,” one source said. “But if you think of it more like art, you need to stick it in a [private equity] fund.”

There are few investment professionals with the know-how, at the moment, to mint serious money from NFT markets — so investors hungry for exposure may well sidestep traditional procedures. 

It is believed Punk 6529 owns potentially thousands of NFTs. The anon also claims to have started investing in bitcoin in summer 2013 and “played a small role in BTC’s development and acceptance.”

Punk 6529 has urged first-time and small-time NFT investors to pony up only money they are willing to lose, and also to maintain custody over their assets rather than keeping them on exchanges and non-fungible marketplaces.

But for now, though, their focus is on much bigger investors. “2022 will be the year of the institutions in NFTs,” they wrote. “Plan accordingly!”


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

AERODROME TEMPLATE.png

Research

Aerodrome is a "MetaDEX" that combines elements of various DEX primitives such as Uniswap V2 and V3, Curve, Convex, and Votium. Since its launch on Base, it has become the largest protocol by TVL with more than $495M in value locked, doubling Uniswap's Base deployment.

article-image

Also, former Valkyrie CEO lands new leadership role at Canadian investment firm Cypherpunk Holdings

article-image

This week’s biggest funding round saw Jump Trading, JPMorgan contribute to the round

article-image

Plus, a layer-1 for intellectual property is launching and Farcaster users peaked

article-image

Crypto still hasn’t shaken one of its most garish primordial tails — funny stories about fraud

article-image

Plus, publicly traded crypto companies had a pretty eventful news week

article-image

Committee members directed more questions to Christy Goldsmith Romero, who could soon be leading one of the more troubled federal agencies