How the NFT art market works

Today, cryptoart is not only an opportunity for artists to earn big money, but also a new round of art development. Russia also did not stand aside: Pokras Lampas sold his work in the form of an NFT token for $ 29,000, the Hermitage is planning the first exhibition of NFT tokens in the field of art, and the Sila Sveta studio will create its own NFT project dedicated to the 60th anniversary of the first human flight to space.

How the NFT art market works, said Artur Kondrashenkov, creative director of Sila Sveta, an international digital art expert, whose works are sold on the world platforms Foundation and Rarible.

What is NFT and how to own it?

NFT art, or cryptoart, is digital art, objects of which can be seen with the help of gadgets. The peculiarity of NFT art is that it can be sold for cryptocurrency using blockchain technology. Each work is assigned a specific token (digital virtual unit with a specific value), which is called NFT.

In the blockchain, each record is called a token. The token can be fungible – in this case, it can be exchanged for another, like a currency, and not fungible (NFT, non-fungible token) – they are unique, cannot be exchanged and are used to confirm ownership of a digital object.

Simply put, an NFT token is the ID of a specific job. On it you can find out when and at what price the art was sold, who is its author and the current owner. This whole story is fixed to a token in the blockchain.

But here the question arises, how can you have an intangible picture, if it is freely available on the network, what value does it have? The fact is that the original is assigned to the NFT token, and all the pictures on the Internet are just copies of that art.

This is the same as with “Mona Lisa” by Leonardo da Vinci. There are a huge number of images of this painting, reproductions in the world, but the original is in the Louvre, and only visitors to the museum saw the real work.

Where and how can you buy NFT art?

NFT art is sold on special online platforms – marketplaces. Now, in the wake of the popularity of NFT, a huge number of such platforms are being created, but the most famous are Nifty Gateway, SuperRare, Rarible and OpenSea.

An artist who wants to sell his drawing usually places his work on the marketplace, creates a token, and then only needs to find a buyer. This allows the artist to choose the most convenient conditions for himself.

If the artist is in demand and very popular, then his work can be exhibited for sale by famous auction houses. For example, at Christie’s online auction, artist Mike Winkelmann (Beeple) sold his painting in the form of an NFT token for $ 69.3 million, which was a record amount in the field of NFT art.

Who are the famous sellers of their art?

Thanks to this incident, many realized that a lot of money can be made in the NFT space. The popularity of NFT was taken advantage of by the singer Grimes (the girlfriend of Elon Musk, who gave birth to his child). She sold a collection of her paintings tied to NFT tokens for $ 5.8 million.

The burnt work of Banksy Morons, which was bought by the blockchain company Injective Protocol from New York’s Taglialatella Gallery, was also converted into an NFT token. She also staged a performance of burning the painting and turned it into digital art.

Today, not only paintings can be placed on marketplaces. NFT tokens can be used to sell everything digitally produced: photos, GIFs, short films, video game items, screenshots of tweets, and music.

For example, the famous singer The Weeknd released his first collection of unreleased music in the NFT space and his own art cover for the tracks, raising $ 2.29 million.The Gucci fashion house plans to create its own NFT tokens, which will be tied to collectible clothing and the American newspaper The New York Times put its column in the NFT and sold it for $ 570 thousand.

How does NFT create a new era in contemporary art?

Today, NFT technology is fundamentally changing contemporary art. And the coronavirus pandemic has made its own adjustments to its development. If earlier live auctions were arranged, where it was possible to sell a material picture, now all sales have gone to digital, where it is much easier to attach an NFT token to your work.

But this does not mean that NFT art will remain online. Today, many galleries are thinking about holding a digital art exhibition. For example, this year the Hermitage plans to hold the first exhibition of NFT art in Russia.
In addition, various digital projects related to NFT are being created. So the studio Sila Sveta plans to turn the projection of the rocket takeoff from the launch pad into the NFT format. This projection will be timed to coincide with the 60th anniversary of Yuri Gagarin’s first space flight. It is always important and interesting for a studio to be the first to try trends and develop them by example.

So far, there are practically no examples of expertise in this area on the Russian market. A good example of the ability to ride a trend in a timely manner is his own XR-studio, which Sila Sveta is currently building after the resounding success of Billie Eilish’s online concert design.

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