1. Account Rules on Cryptopunks
The smart contract of Cryptopunks can receive funds. It opens an account for every user. Note that this account exists not on Ethereum but within the contract. When users make a bid, if it is the highest, they will transfer the offered amount to the smart contract of Cryptopunks. This is a mechanism built into the smart contract and is unique to the Cryptopunks. In a successful sale, the buyer's funds will go to the seller's account. When a seller accepts the bid for his/ her listed Cryptopunks NFT(s), the bid amount will go to the seller's account. When a buyer withdraws his/ her bid, the funds will go back to the buyer's account on Ethereum. A Cryptopunks account holder can withdraw all ether(s) and send them to an ETH address whenever he/ she wants.
2. Transferring Cryptopunks
A holder of Cryptopunk NFT(s) can gift their Cryptopunk(s) to others. When a listed Cryptopunk NFT gets gifted, before it does, it will be automatically delisted. If the person being gifted the above Cryptopunk NFT(s) happens to be the one making the highest bid, his/ her funds will return to their address. Note that all transfer activities will be broadcasted.
3. Selling Cryptopunks
A holder of Cryptopunk NFT(s) can set a price for the NFT and announce the listing. A holder of Cryptopunk NFT(s) can cancel the listing, and the delisting will get broadcasted. A holder of Cryptopunk NFT(s) can dictate the addresses eligible to purchase their Cryptopunk NFT(s). If the seller sets no limit on the buyer's identity, then the Cryptopunk NFT(s) can be sold to anyone.
4. Buying Cryptopunks
The listed Cryptopunk NFT(s) can be bought. If the seller sets limits on who can make the purchase, then only certain buyer(s) can buy the listed Cryptopunks. All offers must be equal to or larger than the price of the NFT concerned. The sold Cryptopunk will be transferred to the buyer, and the seller will receive the funds. The sold Cryptopunk will get delisted. If the buyer purchases a listed Cryptopunk for which he/ she has made the highest bid, the offer will become invalid, and the funds used for making that offer will return to the buyer's account. The activities, including transfer, sale, and cancellation, will be broadcasted.
5. Bidding for Cryptopunks - How an offer becomes invalid
Anyone can make a bid for a Cryptopunk NFT, and only the highest bid will be recorded, along with its bidder. The bids lower than the highest one will become invalid, and their records will be lost and cannot be recovered. To make a bid, one has to pay the bid sum. If a bid becomes invalid, the bidder will have to claim the funds to have them back. The highest bidder can withdraw the bid, and if he/ she does, the bid funds will return to the bidder's ETH address. All bidding activities and bid withdrawals will be broadcasted.
6. Accepting a Bid for Cryptopunks
The holder of a Cryptopunk NFT can accept the highest bid. If he/ she does, this NFT will be transferred. All successful sales will be broadcasted.