Wrapping a token is exchanging one set of standards for token interaction with another set of standards. In short, you convert a Kitty into an ERC-20 token that can be traded on exchanges. The tokens in supply are all backed 1:1 by Kitties.
Wrapped CryptoKitties ($WCK) is a useful currency that provides liquidity to the market and establishes a base floor value for all CryptoKitties.
This is the lowest possible price you can purchase a Kitty at on the market. Gen-0s and Virgin Gen-0 Kitties have their own floor values and are in constant fluctuation with the market.
There is a fixed cap of 50,000 Gen-0 Kitties whereas non-Gen-0 Kitties can be bred indefinitely.
All Gen-0 cats are minted as Virgin and as they are bred, they lose their virginity status.