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 artworks in decline
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 spring 2022, the value of many NFTs has collapsed, raising the question of whether this technology truly has the potential to revolutionize the art market. Will NFT art endure or disappear completely? And what does the devaluation of digital artworks mean for artists and collectors?
In this article, we will address these questions and attempt to provide a current assessment of the status quo of the NFT market, as well as venture a brief outlook into the future.
The NFT hype: How did it originate?
The origins of the NFT concept date back several years. The first NFTs were created on the Ethereum blockchain 2017
Beeple 's "Everydays: The First 5000 Days" in February 2021 caused a sensation. The work was auctioned for an incredible 69 million US dollars, making it the most expensive NFT artwork ever sold.
This record triggered a veritable gold rush , and many artists jumped on the bandwagon to sell their own works as NFTs.
And so it came to pass that enormous sums were paid “Cryptopunks” or the “Bored Ape Yacht Club”
Even celebrities like Elon Musk and Grimes joined the hype and sold their own artwork as NFTs. This created a veritable hype around digital artworks that lasted until around the beginning of 2022.
The influence of speculators
A significant factor that substantially influenced the enormous increase in value of digital artworks in such a short time was speculators and market participants with sometimes opaque methods.
Speculative investors invested heavily in NFTs with the aim of selling them again shortly afterwards at a significantly higher price and thus making a profit.
This could lead to artificially inflated prices for digital artworks, even if they had no real value. If demand for these works then drops abruptly or the market weakens in general, a sharp decline in value can occur.
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 both the auction house Sotheby’s and a group of celebrities – including Paris Hilton and Justin Bieber – which addresses the question of whether buyers of Bored Apes NFTs were deceived at an auction held by the major 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, misleadingly advertised the NFTs, thereby artificially inflating prices ( t3n reported). According to 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 involved in this matter, according to t3n, is the crypto payment provider Moonpay . It is accused of secretly paying influencers with cryptocurrencies to artificially inflate interest in NFTs. According to the plaintiff, these paid advertisements made interest in NFTs appear more natural.
Both Sotheby's and Yuga Labs deny the allegations.
What came after the hype?
In the spring of 2022, a bear market began and caused the cryptocurrency Ethereum, which forms the basis for most NFTs, to crash.
Numerous projects suffered heavy losses. Is this the final end of the hype?
Mike Hager , author of “Inside NFT” , is certain that digital ownership technology is here to stay. He cited the numerous applications in areas such as gaming, ticketing, and documenting legal transactions as just a few examples in an interview with Handelsblatt .
Inside NFT: Stars, Stories, Strategies: The NFT Pope Reveals All, available atAmazon
According to him, NFT will continue to play a role in the art world, as many artists value direct contact with their buyers – an aspect that is rather rare traditional art market
For the past two and a half years, Hager has been deeply immersed in the world of NFTs and has since become an expert in this field. He has an excellent network and travels the globe to attend conferences and speak with leading figures in the industry.
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, Munich-based investor Hager made a significant investment by "mining" . Each of the 10,000 "Bored Apes" cost approximately €180 at the time. Although Hager could have earned almost €2 million later by selling the monkeys, he is not a short-term investor.
“Inside NFT” is Hager’s second book on the subject . In “Get Rich with NFTs” he explained the technical basics for navigating the world of Web 3 .
Get Rich with NFTs: Investing in Non-Fungible Tokens: Everything You Need to Know (Author: Mike Hager) available atAmazon
He takes a long-term view of all his investments and has already experienced many cryptocurrency cycles . This experience has instilled in him a calm and composed demeanor. He is currently working on his brand “10APES” , which he plans 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 biggest “cash grabs” from which one can learn.
His most urgent advice is to only invest money you can afford to lose. Some NFT projects may be in the spotlight today, but they could be discredited tomorrow.
Latest news on the NFT market and Bored Apes
Bored Apes at record low
The Bored Apes Yacht Club is under increasing pressure as its art collection has reached a new financial low. Apecoin (APE) could also continue to lose value, exacerbating the situation (Decrypt reported in July 2023).
Some critics claim that NFTs are a pyramid scheme, but prominent backers once drove the Bored-Ape NFTs to a peak minimum price of $429,000 or 152 ETH.
When Justin Bieber valued his Bored Ape NFT at $1.3 million in 2022, the hype surrounding these collector's items seemed to have reached its peak. But today, its value has plummeted to just $60,000, raising concerns about the Bored Apes Yacht Club.
GameStop announces the end of its crypto business
The winner of the Wallstreetbets, the gaming retailer GameStop , recently decided to withdraw from the crypto asset business. The first step in this direction is the discontinuation of its crypto wallet program.
This program enabled GameStop customers to send, receive, store and use crypto assets such as currencies and NFTs via decentralized applications – all through the web browser.
However, as of November 1, 2023, this will no longer be possible, as GameStop announced on its official website.
Both the iOS app and the wallet extension for Google's Chrome browser are being discontinued. GameStop cites "regulatory uncertainty in the crypto sector" .
Trump's NFTs are experiencing a second spring after indictment photo
, Donald Trump surrendered to the authorities in Atlanta.
The former US president is accused of election interference in the state of Georgia.
Despite these unfortunate circumstances, Trump was able to claim a remarkable moment in history: He is the first former president to be photographed by the authorities .
Interestingly, his NFT collection also seems to be benefiting from the recent headlines. The online marketplace OpenSea has seen a surge in interest in Trump's NFTs since Wednesday, according to data. Within just 24 hours, trading volume jumped 276 percent to 17.76 ETH.
Prices for Trump's NFT collection rose by 38 percent.
The so-called Trump Cards feature images of the former president, showing him in various edited environments, usually with a confident smile.
Trump poses as a cowboy, in military uniform, or while playing golf.
For a price of $99 each, Trump supporters can purchase the crypto cards with a credit card, without needing any prior experience in cryptocurrency, and receive assistance in setting up a digital wallet.
Particle is changing the world of high-quality artworks by fractionalizing these pieces into NFTs (keyword: Fractional Art Investing ). Now they have announced a major development, revealing the loan of their Banksy painting"Love is in the Air" to renowned museums around the world.
Over 2,600 co-owners have participated in the ownership and management of these digital artworks through Particle. These include well-known personalities such as Beeple , Paris Hilton , and Kevin Rose .
The journey of Banksy's iconic painting, valued at $12.9 million, begins in the United Kingdom. The piece will be featured as a key component of the street art exhibition "The Urban Frame: Mutiny in Colour" in Newmarket.
The tour will continue with artworks exhibited in renowned museums, initially on display for six months each at MOCO in Amsterdam and Barcelona.
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, Gustav Klimt's " Lady with a Fan" auctioned at Sotheby's in London for $108.4 million – the most valuable work of art ever auctioned in Europe.
The art market has proven extremely resilient, and the pandemic was weathered well thanks to the rapid expansion of online sales. Prices for blue-chip art , created by artists considered icons, have been particularly stable.
Works of this kind have been traded at consistently high prices for years. In contrast, the hype surrounding NFT art has cooled noticeably, according to WirtschaftsWoche .
Owner and Managing Director of Kunstplaza. Journalist, 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 study (2008). Further development of creativity techniques through courses in free drawing, expressive painting, and theatre/acting. Profound knowledge of the art market through 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.
In order to secure your own existence, it is essential to make money with art . In fact, contrary to the majority perception, many artists can live well from their creative work these days. Nevertheless, a vast majority of all freelance artists are dependent on further sources of income (e.g. giving courses, order work, part -time 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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Round rug "Miami", dark green, Ø 160 cm
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