What is NFT art

Non-Fungible Token linked to a digital artwork

NFT stands for Non-Fungible Token – a unique and non-interchangeable unit of data using blockchain technology to establish proof of ownership. The value of NFT lies in the token itself, not in the file it is linked to.

Value in the Token, not in the Art

NFT can establish the proof of ownership in anything it links to, even if the destination item later disappears. So it has to be very well digital: Memes, tweets, digital collectables, digital drawings and new media art. One of the best-known applications of NFT in art undoubtedly goes to Beeple, who sold his work “First 5000 Days” for $69.3 million.

An opportunity for artists

NFT art is considered a great opportunity for artists, but don’t be so enthusiastic just yet. Apparently, it is disrupting the actual art market and creating some new opportunities (like when social media started). But this NFT hype is created by celebrities and investors who carried out a passionate purchase. 

Ship of Fools

Were Raphael or Michelangelo sellouts because they were directed and paid by the Church? Did they question the Church’s ethics? Following their leaders or prophets, artists have always benefited and constrained their times. When NFT hype came, should we take a moment to question its impact on our society, or take advantage of it for our own profits?

Art ruled by the financial economy

NFT art could be a tool for high-net-worth individuals to create wealth outside of the real economy (and dive it the financial economy) through the sophistication of blockchain without the sophistication of contemporary art discourse. The Internet was originally made to promote free access to knowledge, but what happened next was the opposite.

NFT art pros and cons

Pros:

• NFT allows the artist to sell directly to the collectors
• NFT facilitates the verification of authenticity and ownership
• NFT allows artists to have passive income (via the secondary market)
• There is a strong community of supporters
• Artists can represent themselves without a gallery
• It’s trending now

Cons:

• Technically complex
• High transaction fees
• Not environmental friendly
• Not energy efficient
• Unclear future under government regulations
• Based on highly volatile currencies
• Many scammers and con artists

NFT art explained in context

Our real economy (the part that produces goods and services, rather than the part that consists of the financial economy such as stock markets…) is facing great challenges on a global scale. In other words, we are in a crisis.

Economic bubble

In this context the mechanism of the economic bubble appears, it is known at least from medieval time: When things are going south, and the economy declines, the ruling class or elites install an artificial way to create wealth, transmitting a euphoric effect.

Tulip fever example

As an example, you can check about the Tulip Fever in 1637 when the tulips value reached extraordinarily high levels. This event, becoming the first recorded speculative bubble, happened when investors were ruined by the fall in prices and Dutch commerce suffered a severe shock. The bubble lasted for a year.

“Flora’s wagon of fools” Hendrik Gerritsz 1640 (photo: Laura Blanchard)

Hiding a depressive reality

The ultra-liberalism enables the financial world to create those bubbles (the most well-known recent being GameStop) but there are many. NFT art is when the art of the financial world meets the art world in a new way, the tech way.

Because we can’t increase wealth we create value, hiding the depressive reality. But at the same time increasing the problem.

Knowing when

One day the bubble bursts, and in general it is again beneficial for the ones who created it and the well informed because they will know when to withdraw.

NFT art Do’s and Don’ts

When trying to sell your works, keep in mind:

Don’ts

• Focus on the art: don’t explain why you need the money
• Don’t pretend to be interested in the collector when you just want a sale
• On social media, don’t tag collectors if you don’t have previous contact with them. Being pushy often reduces your chances to sell.
• Don’t promote your art under another artist or collector post. It is disrespectful and makes you look bad.

Dos

• Participate in the online public talks (twitter spaces, discord)
• Promote your NFT art on posts asking to do so by artists, collectors or influencers
• Build a network with artists whose personality and art you resonate with and support them
• Promote your unsold NFTs every few days.
• Be consistent in making and posting your artwork so people know your style.
• Develop your identity as a brand. Be aware of how you are presenting yourself and what you post.
• Only mint your best artworks. Play with scarcity, you cannot afford to mint all your art. How long have these pieces gone unsold? Consider burning (opposite of minting) them if they are not sold for too long.
• Start with one platform (e.g. OpenSea, Rarible, SuperRare, KnownOrigin…). Learn from it and work on being active in it (Scarcity coefficient). Expand to others when one starts to work for you. Be consistent in pricing throughout platforms.
• This is about Finance and Tech. List your prices and make them available easily. Play with sales opportunities. Evaluate and show your highest and lowest price.
• Provenance: Consider a discount depending on the collector and your visibility in their collection.