For a while, it seemed impossible to go far in the art world without encountering the topic of NFT (Network Transparency and Technology). Some say it's the future of digital art and a revolution in the art market, while others consider it a climate-damaging bubble.
NFTs , or Non-Fungible Tokens , were a groundbreaking new concept at the time, making it possible to own and sell digital artworks. Essentially, they are unique digital certificates that confirm ownership of digital assets.
What remains of the NFT hype? Digital works of art in the loss of value
One of the most prominent NFT collections was created by the Bored Ape Yacht Club (BAYC) . The hyped monkeys have been purchased by superstars and pop icons such as Madonna, Eminem, Justin Bieber, Paris Hilton, Neymar, Stephen Curry, Jimmy Fallon, and Post Malone.
In the years leading up to 2021 , the hype surrounding NFTs and digital artworks caused enormous excitement. Large sums of investment capital flowed into this emerging market, and some even paid millions for a single NFT artwork.
But what remains of this hype? Since the spring of 2022, the value of many NFTs has collapsed and the question arises whether this technology actually has the potential to turn the art market upside down. Will NFT art stay or completely disappear in the sinking again? And what does the decline in value of digital works of art mean for artists and collectors?
In this article we will deal with these questions and try to give a current inventory of the status quo of the NFT market and venture a small outlook into the future.
The NFT hype: How did it come about?
The origin of the NFT concept has been a few years ago. In 2017, the first NFTs were created on the Ethereum blockchain, but at that time the concept was still not very important.
It was not until February 2021 that the sale of the digital work of art "Everydays: The First 5000 Days" from Beeple a sensation. The work was auctioned for an incredible $ 69 million and was therefore the most expensive NFT work of art ever sold.
This record triggered a real gold digger mood and many artists jumped up on the train to sell their own works as NFTs.
And so it happened that enormous sums were paid "Cryptopunks" or the "Bored Ape Yacht Club" In some cases, these sums reached millions.
Celebrities like Elon Musk and Grimes also participated in the hype and sold their own works of art as NFTS. This resulted in a real hype about the digital works of art, which lasted until around the beginning of 2022.
The influence of speculators
An important factor that significantly influenced the enormous increase in value of digital works of art in such a short time were speculators and market participants with sometimes opaque methods.
Speculatively oriented investors invested massively in NFTs with the aim of selling them again shortly afterwards at a significantly higher price and thus making profit.
It could happen that the prices for digital works of art were artificially driven up without them being actual. If the demand for these works sinks abruptly or the market is generally weakening, there may be a strong drop in value.
This is particularly problematic not only investors but also for artists who sell their works as NFTs and depend on the proceeds from these transactions. The influence of speculators on the NFT market is therefore a subject of controversial debate.
Some argue that they are necessary to stimulate the market and draw attention to digital artworks. Others, however, see them as a threat to market stability and the credibility of NFTs as an investment.
BORED Apes: NFT investors sue Sotheby's and prominent stars
There is a lawsuit that affects both the auction house Sotheby’s and a group of celebrities-including Paris Hilton and Justin Bieber -and who deals with the question of whether buyers of bored apes were deceived at an auction of the large art house.
The risks associated with these digital assets are the focus of the investigation. It remains to be seen how the matter will develop and whether the plaintiffs will be able to convince the prosecution. However, it is of paramount importance to all parties involved that the transparency and integrity of the NFT market are guaranteed in order to maintain buyer confidence.
According to the plaintiffs, Sotheby's in cooperation with Yuga Labs , the company behind the Bored Ape Yacht Club, who misleading NFTS and thus artificially driven up the prices ( T3N reported). According to the US news channel CNN , 30 companies and individuals are affected by this lawsuit.
It is reasonable to assume that the dramatic depreciation of the NFTS is one of the reasons for the lawsuit. In May 2022, the least expensive NFT in the collection sold for a staggering $400,000. Today, however, these NFTS can be acquired on the market for just over $50,000.
Another party in this matter is the provider of crypto payments called Moonpay . He is charged to have secretly paid influencers with cryptocurrencies in order to artificially increase interest in NFTs. Through these paid advertising measures, interest in NFTS appeared to be more natural according to the plaintiff.
Both Sotheby's and Yuga Labs deny the allegations.
What came after the hype?
In the spring of 2022, a bear market and brought the cryptocurrency Ethereum, which forms the basis for most NFTS, to fall.
Numerous projects had to accept bitter losses. Is this the final end of the hype?
Mike Hager , the author of "Inside NFT" , is certain that the technology of digital proof of ownership will no longer disappear. The numerous applications in areas such as gaming, ticketing or the documentation of legal transactions are just a few examples, he mentioned in an interview with the Handelsblatt .
Inside NFT: stars, stories, strategies: The NFT pope is available fromAmazon
According to him, too, he will continue to play a role in the art area, since many artists appreciate direct contact with their buyers - one aspect that is rarely found the traditional art market
Hager has immersed Hager deep into the world of the NFTs for two and a half years and has now developed into an expert in this area. He is well networked and travels to take part in conferences and speak to the leading minds of the scene.
He gathers useful information for his quarterly print magazine, which is entirely dedicated to NFTs. Originally known for his successful YouTube channel , Hager now also advises companies and artists on NFTs.
In April 2021, the Munich investor Hager made an important investment by "getting" . Each of the 10,000 “Bored Apes” cost around 180 euros at the time. Although Hager could have earned almost two million euros from the sale of the monkeys at a later date, he is not a short -term investor.
"Inside NFT" is already Hager's second book on the subject . In "Reich with NFTS" he explained the technical basics to find his way around the world of Web 3 .
Rich with NFTS: Investing in non-fungable tokens: Everything you need to know (author: Mike Hager) available fromAmazon
He looks at all of his investments in the long term and has already experienced many cryptocurrency cycles . This experience wrapped him into a calm and relaxed tonality. "10apes" brand , which he wants to use in the future to sell "Bored Beer"
Despite the general enthusiasm for NFTS, Hager always emphasizes the associated risks and publishes a list of the largest “cash graves” from which you can learn.
His most urgent advice is to invest only money that you can afford to lose. Some NFT projects may be in the spotlight today, but tomorrow they could already be disenchanted.
Latest news about the NFT market and Bored Apes
Bored Apes to record low
The Bored Apes Yacht Club has become increasingly under pressure because the art collection has achieved a new financial record low. The apecoin (APE) could also continue to lose value, which tightened the situation (Decrypt reported in July 2023).
Some critics claim that NFTs are a snowball system, but prominent supporters have once brought the bored APE NFTs to the top minimum price of $ 429,000 or <T.
When Justin Bieber estimated his BORED APE NFT for $ 1.3 million in 2022, the hype seemed to have reached its climax. But today his value has dropped to only $ 60,000, which increases the concern for the Bored Apes Yacht Club.
Gamestop heralds at the end of his crypto business
The winner of Wallstreetbets, the player Gamestop , recently decided to withdraw from the crypto-asset business. The first step in this direction is the attitude of his crypto wallet program.
This program made it possible for the Gamestop customers to send, save and use crypto-assets such as currencies and NFTs via decentralized applications-all about the web browser.
But from November 1, 2023, this will no longer be possible, as Gamestop announces on its official website.
Both the iOS offer and the wallet extension for Google's Chrome browser are discontinued. Gamestop justifies this step with the "regulatory uncertainty in the crypto area" .
Trump's NFTs are experiencing a second spring after indictment photo
, Donald Trump went into the violence of the authorities in Atlanta.
The former US President is charged with the electoral influence in the state of Georgia.
Despite these unpleasant circumstances, Trump was able to record a remarkable moment in history: he is the first former president to photograph the authorities .
Interestingly, however, his NFT collection also seems to benefit from the recent headlines. The online marketplace OpenSea has been increasing an increasing interest in Trump's NFTs since Wednesday, as the data show. Within only 24 hours, the trading volume rose by 276 percent to 17.76 ETH.
The prices for Trump's collection rose by 38 percent.
The so -called Trump Cards are usually provided with pictures of the former president, who show him in various processed environments, with a confident smile.
Trump poses as a cowboy, in military uniform or golf.
For a price of $ 99 per piece, Trump supporters can purchase the crypto cards with a credit card without needing previous experience in the field of cryptocurrency, and receive support in setting up a digital wallet.
Particle changes the world of high -quality works of art by fractionalizing these pieces in NFTS (keyword: fractional art investing ). Now you have announced an important development and have announced the loan of your Banksy painting"Love Is In The Air" to renowned museums around the world.
Over 2,600 co -owners have participated in the property and the administration of these digital works of art with participants. These include well -known personalities such as Beeple , Paris Hilton and Kevin Rose .
The journey of Banksy's iconic painting worth $ 12.9 million begins in the United Kingdom. The piece is shown as an essential part of the Street Art exhibition entitled "The Urban Frame: Mutiny in Color" in Newmarket.
The tour is to be continued with works of art that are exhibited in renowned museums and can initially be seen in Moco in Amsterdam and Barcelona for six months.
This remarkable world tour reflects a new era in the appreciation and dissemination of art, connecting the digital and physical realms of art. Learn more here .
Blue-chip art is better than NFTs
There is enough money for art: Recently at Sotheby's in London Gustav Klimts " Dame with subjects" for $ 108.4 million - the most valuable work of art ever auctioned in Europe.
The art market has proven to be extremely resistant and the pandemic was well managed thanks to the rapid expansion of the online trade. The prices for blue chip art that was created by artists who are considered icons are particularly stable.
Works of this kind have been traded at consistently high prices for years. The hype about NFT art, on the other hand, has cooled down noticeably, according to Wirtschaftswoche .
Owner and Managing Director of Kunstplaza. Publicist, editor, and passionate blogger in the field of art, design, and creativity since 2011. Successful completion of a degree in web design as part of a university program (2008). Further development of creativity techniques through courses in free drawing, expressive painting, and theater/acting. Profound knowledge of the art market through many years of journalistic research and numerous collaborations with actors/institutions from art and culture.
A fundamental need for every artistically creative person is likely to be the ability to live off their art.
To secure one's existence, it's essential to earn money with art. In fact, many artists can live well off their creative work today, contrary to the majority's perception. Nevertheless, a vast majority of freelance artists still rely on additional income sources (e.g., giving courses, commissioned work, side jobs, etc.).
Recognition as an artist often does not bring immediate financial security. Therefore, artists are often also life artists.
The opportunities to make a living from one's own art have, however, grown significantly due to the internet and social media. As an artist, however, you must be versatile and flexible to succeed. A certain degree of perseverance is also essential.
Customer care and self-marketing are also important pillars for success as an artist.
In this section, we compile numerous articles, information, tips, and advice to help you make a living from your art.
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