What is NFT: How did a digital artifact easily downloaded from the Internet find buyers for $ 70 million?

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What is NFT: How did a digital artifact easily downloaded from the Internet find buyers for $ 70 million?


March 11 is a milestone for digital art. The artist named Mike Winkelmann, known as Beeple, sold his fully digital work for $ 69.3 million, reaching the third highest number an artist ever reached in life. NFT, i.e. non-fungible token This work, which has been certified as, brought the most “crazy” trend of recent years to the forefront of the agenda once.

One of the most curious things in the world today is how digital jobs that can easily be downloaded from the internet can find buyers for millions of dollars.

This is where NFTs come into play, so the artifacts’crypto- is referred to as ‘art’.

NFT is perhaps best described as a digital certificate of the authenticity of something.

The artworks sold here are not works that have a physical existence, such as a painting or sculpture. That’s why NFTs, ‘digital certificates’, represent rarity and ownership.

NFTs, just like Bitcoin and other cryptocurrencies, use blockchain technology and transactions are recorded through this technology.

Thanks to this system, the artist can reach the buyers directly by eliminating the auction companies, as well as receiving commissions from the re-purchase of the sold digital work.

At this point, we can give the following example; British artist who is the most expensive living painter David Hockneychanged hands for $ 90.3 million in 2018. However, Hockney did not get any share from this sale. Because in 1972 the same painting was sold for 18 thousand dollars.

Thanks to NFT, digital artists can get a share of up to 10 percent from ongoing sales.

GIFs, songs, and videos are among the digital assets that have changed hands to incredible numbers.

The number of people who define the frenzy of NFT certified sales as an investment bubble is not few.

‘An indicator of democratization in the art market’

It is also stated that these digital certificates cause a major environmental problem because they are recorded on Blockchain technology.

Uçman, a 3D artist based in the UK Balaban he says he never expected this rapid transformation, “The work I did / we were doing always seemed like a fruitless tree, but this change is really exciting.” says.

He answers the question in the title by associating it with the definition called ‘the right to brag’:

“I can understand why artists participated in this attack, but I still do not understand what attracted collectors here. I guess it is not easy to download the subject from the internet, but to write its name in the history of art. A digital artwork was sold for 70 million dollars in a strange time period when the desire to have it overcame the physical object.”

According to Beeple, who broke the sales record with the NFT, this transformation was an indicator of democratization in the art market.

Speaking to CNN, the 3D artist says, “This is a bit of a surreal situation, I didn’t think I could sell digital images for my lifetime. I can now reach my audience directly. I don’t need an intermediary. I think this is the beginning of a new era in art history.”

Artist Uçman Balaban, whose works are on sale through NFT, points to a similar democratization:

“I think the important thing here is to get away from the things / people that galleries, art dealers and books call” art and artist “and give everyone an equal chance. It seems that things work a little better at the point where you remove the intermediaries.”

Kripto scams’

However, there is also the opinion that the internet being a very anonymous region creates doubt on auctions. The number of those who think that prices can be increased by anonymous people is not a small number.

David Gerard, author of the book Attack of the 50-foot Blockchain, argues that the real NFT sells are ‘crypto scams’:

“They’ve always been there. They’ve always had the aim of turning it into money by inventing a worthless new magic bean.”

The rapid rise of the crypto art market also leads to predictions about the possibility of “crash”.

Charles Allsopp, a former employee of Christie’s auction house, says he doesn’t understand the concept of buying NFT.

Speaking to the BBC, Allsopp says, “I think the people who invest in this are a bit suckers. I hope they don’t lose their money.”

Hundreds of millions of dollars paid for NBA clips

The explosion of NFT certified sales is also reflected in the graphics.

Numerous digital artists, bands and Sport club discovered that they can convert digital products that were previously free to monetary income in this way.

Many associate the explosion of the NBA with the launch of the Top Shot website.

On this site, important moments in NBA games are sold in short clips. Sounds crazy, but, for example, on February 22, a buyer paid $ 208k for LeBron James’ dunk clip.

The following statements on the Top Shot site should be for people who cannot make sense of these amounts:

“Each collectible carries a unique serial number that guarantees its rarity, and this ownership is guaranteed by blockchain. Of the 49 clips released from LeBron James’s legendary smac, you are the only one who owns it when you have the 23rd.”

Up to 100 thousand buyers have purchased 250 million dollars so far on the site, which has a life of five months.

Fenerbahce footballer Mesut Ozil, in his own words, “embraced the future” by making an NFT partnership whose income will be donated to charity organizations.

In another auction that will end on March 21, this time it is a tweet that will be certified with NFT and sold.

Jack Dorsey, one of the founders of Twitter, is expected to find buyers for millions of dollars in his “first tweet”.

So, what will be left behind when the smoke of this explosion, which is interpreted as the trigger of being in the digital world due to the pandemic according to some?

Uçman Balaban’s response to this, “It is said that the market will explode under this gold rush situation, but after this explosion, collectors and artists who are really engaged in this explosion will remain. We will wait and see.” is happening.

“When this passes, my hope will be a new design layout. The elements that exploit the designers will have to sit down and think once again. After a while, although the artists cannot make money on NFTs, I think they will be respected a little more while doing their work normally.

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What is NFT: How did a digital artifact easily downloaded from the Internet find buyers for $ 70 million?
BBC


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