In today’s digital asset market, there are a lot of conflicting opinions about NFTs (non-fungible tokens). Whether you love or hate it, there’s no denying that NFT is a groundbreaking technology for the art and collectibles industry.
Digital artworks have emerged as a robust industry, with the NFT market expected to become $147.24 billion by 2026.
But let’s take a step back and reflect on the broader use case of non-fungible tokens.
Modern advancements in digital and online technology are changing the art market. Online events are becoming more popular than ever as they can be accessed by anyone from anywhere. By simply opening a screen, people are able to instantly access desired products and services from all around the world, which makes it easier than ever to engage with your artistic interests.
The art market is no exception to this trend. Over the past few years it has been strengthening its online presence, and despite an overall decline in sales, the online trade is actually at a record high, doubling in value from two years ago. It is therefore reasonable to expect further substantial growth in this sector.
At the heart of this online art world are OVRs.
When it comes to the modern art world, millennials have played a crucial role in the recent years.
After the pandemic, they tremendously helped the art market to recover from countless museum, gallery, and exhibition closures.
A report from Art Basel-UBS states that in the first half of 2021, millennials spent the most on art, helping to boost the much needed recovery of the market.
Sales were also up by 10%, with millennials doubling the buying power of Gen X, and spending four times more than baby boomers!
It may be obvious but still needs to be said – the benefits of NFTs for the entire art world are tremendous!
Art that doesn’t exist in a physical form can now be bought, sold, and collected, opening many opportunities for artists, collectors, and investor.
There are also great benefits to physical art from NFTs. Art museums and galleries now have the ability to earn additional revenue from their artworks.
NFTs are clearly helping to create a unique generational synergy between the old and the new art.
MARKET ALERT | Vintage rotary phones have been steadily rising in value and liquidity, becoming almost as good as gold.
Rare models sell between $200-2000 regularly. Even most basic rotary phones are in high demand.
Well-known home decorators are getting in the game and scooping up vintage phones from the market in bulk!
Further fuel into the fire is thrown by the limited (and constantly decreasing) supply.
Around February of this year, in the midst of the still-pending cryptocurrency boom, a sub-category of digital assets started to really take off. NonFungible.com reported that by the first quarter of 2021, over $2 billion worth of transactions had taken place in the NFT market. Musician Grimes sold almost $6 million worth of digital art via digital asset marketplace Nifty Gateway, who are partnered with Sotheby’s. Twitter founder Jack Dorsey auctioned his first ever tweet as an NFT, the final bid closing at $2.9 million. UFC Heavyweight Champion Francis Ngannou sold NFTs following his knockout victory over Stipe Miocic. The proceeds of the sale, $580,000, was actually more than his disclosed purse for the fight itself that earned him the belt. Despite the hype, in many regards serving as a speculator’s dream, NFTs come with inherent issues that threaten to hamper widespread and enduring adoption.
Czeslaw Znamierowski, an artist who died forty years ago, is gaining fame in the 21st century. His artwork recently sold for $120,000 in China, setting a personal record.
Znamerovsky’s paintings began to be bought up by oriental auctions, galleries and collectors, according to the Chinese news agencies.
In a relatively short time, the cost of Cheslav Znamerovsky’s paintings increased from several hundred to tens of thousands and even hundreds of thousands of dollars.
Transparent art funds that embrace technology, lawful conduct, and the scientific method to do business are what is needed. It must be understood that clients expect to multiply their capital legally, timely and responsibly, which is a much larger responsibility than just selling art to the highest bidder. Without a doubt, art funds are responsible for leading the market instead of just reacting to it. Reasonable, thought through regulations that help all market participants equally generate wealth, create transparency, freedom, and accountability must be promoted. Leaders of art funds must understand this and hold themselves to a higher standard than everyone else.