CityDAO mulls over the idea of purchasing a CryptoPunk
Given the current state of the general crypto market, a member of CityDAO has suggested that the group buys a CryptoPunk.
Casey raised the idea in the CityDAO forum last Thursday, arguing that current market conditions have created an opportunity for the decentralized autonomous organization (DAO) to acquire so-called blue chip NFTs like CryptoPunks for its Museum of Art. According to the community member, the DAO’s treasury is primarily held in USDC, with little exposure to Ethereum, and “it may be the right time to change that.”
As of press time, the floor price of CryptoPunks was $79,443, down by approximately 5% in the last 24 hours. The NFT collection has witnessed a nearly 20% drop in price over the past week. Comparatively, the all-time high of the blue-chip NFT collection was $445,291.
While the general crypto market has been on a downward spiral since the beginning of the year, NFT sales volume began dropping in June, plunging from over $3 billion in May to $879 million in June 2022.
“We’d need to act relatively fast, so would propose the planning guild’s approval to fast track this to a vote. After the vote, there could a snap discord/community poll on which Punk we should buy up to a capped price,” Casey wrote.
Although some members of the DAO welcomed the idea, there were reservations about the choice of the NFT. CEO Scott Fitsimones opined that purchasing a Noun NFT would be more practical since it is cheaper and would allow CityDAO to make proposals in the NounsDAO. Responding to this, Casey said:
In that case, the Noun does make more sense. My main concern is actually just being able to bid on it via multisig. And needing to send 50 ETH to an EOA isn’t great either.
On the flip side, DAOvolution vehemently rejected the idea, questioning the need to hold speculative assets. However, Casey countered with an argument that “great cities have great museums. As you know, art serves a utility unlike many other speculative assets, and can be used to draw attention and visitors.”
Founded in 2021, CityDAO began as an experiment to buy a small piece of land in Wyoming. In August 2021, the group purchased 40 acres of land in Clark, Wyoming.
