CryptoPunk
'CryptoPunk 7523,' a rare NFT from Larva Labs, is one of several of the certified digital objects being sold by auction house Sotheby's through June 10, 2021 GETTY IMAGES NORTH AMERICA / Cindy Ord

Payment services company Visa announced on Monday that it made a $150,000 cryptocurrency purchase using ethereum for an NFT of a female “CryptoPunk.”

"CryptoPunk 7610" is one of 3,840 "female" punks and is Visa's latest move towards gaining ground in the cryptocurrency and NFT market.

"We think NFTs will play an important role in the future of retail, social media, entertainment, and commerce,” Cuy Sheffield, Visa's head of crypto, said in a blogpost.

“To help our clients and partners participate, we need a firsthand understanding of the infrastructure requirements for a global brand to purchase, store, and leverage an NFT.”

Visa announced the purchase on Monday, but the payment was processed on Aug 19. CryptoPunk can be owned through the ethereum blockchain.

NFT stands for “non-fungible token” and is a digital asset that can be owned through cryptocurrency.

Artwork like the CryptoPunk collection is traded and purchased as NFTs.

The value works much like artwork trading -- some pieces are seen as more desirable than others. Every CryptoPunk character has a unique style, which adds to the “collective value” of owning a digital asset.

Larva Labs, the creator of 10,000 unique collectible CryptoPunk characters, is worth almost $200 million, according to CryptoSlam.

Visa’s NFT purchase adds to the legitimacy of the value behind them. An hour after Visa’s purchase, 90 other similar NFTs were purchased.

As of Monday, 293 CryptoPunk NFTs have been sold for about $77 million altogether.

Visa explained the move is to lend support to the commerce of NFTs.

“We also wanted to signal our support for the creators, collectors, and artists driving the future of NFT-commerce. Enabling buyers and sellers is what we do — whether it's helping small and micro business owners get online, or making it easier for companies to pay their partners across borders. We’re excited to work with this growing community to make NFTs useable and accessible in a variety of contexts,” Sheffield said.

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