NFTs art collectors speculate a bit

Düsseldorf Certified and interchangeable digital items – Non-Foldable Tokens (NFTs) – have brutally opened the door to a new world in the art market. Its turnover was $11.1 billion in 2021 alone, roughly equaling the global art trade entirely online, which Art Basel and UBS’s 2022 report estimated at $13.3 billion.

But though NFTs have become indispensable: there is no consensus as to what should be described as art here. No idea has yet been formed about what role NFTs might play in the art world in the future. “Are we talking about hype or a tipping point?” ask the authors of the “Art + Technology Report 2022.” These are the strategic advisors Kerstin Gold and Kristina Leipold as well as the founders of Office Impart, Johanna Neuschäffer and Anne****.

What the initiators of the Art + Technology Second Report emphasized are collectors’ expectations and demands specifically for “art NFTs,” their composition according to age, financial commitment and the aspects that encourage or hinder purchases. So-called “collectibles,” that is, NFT-approved digital versions of high-quality sneakers or monkeys from Bored Ape Yacht Club or Cryptopunks, I left them aside.

In the end, the general picture of the survey, which is freely accessible on the Internet, illustrates the role that art NFTs can play in the art world of the future. Galleries, auction houses, museums and startups should therefore be advised to take a closer look at this report and draw conclusions from it.

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In principle, a new section is currently showing that it does not necessarily have to be only in the default encrypted shell, which many still view with skepticism. It can also be moved in the midst of familiar institutions – if you seize the opportunity. Because the majority of the 306 respondents, 57 percent, were encouraged to purchase NFT art through curated exhibitions. There are more who would like to be motivated to buy through good fairs in the future.

Initiators of the ART + TECH Report

From me :. Kristina Leibold, Kirsten Gould, Anne Schwartz and Jonah Neuschaver

(Photo: ART+TECH 2022 report)

In line with this, 85 percent of those surveyed had already collected artwork they acquired from the traditional market at the time of the NFT acquisition. A compelling artistic concept is the most important criterion for good NFT art at 88 percent. High accuracy of representation, and an indication of a historical artistic context or the degree of fame of the creator of the NFT is less important.

What drives NFT art buyers above all else is three aspects: knowing that artists benefit directly from their purchase in percentage terms, that as buyers they participate in a paradigm shift in the art world, and the aesthetic joy of digital artwork.

At least half of them think it’s a good idea that they don’t have to worry about transportation, accommodation, suspension, or insurance. However, in the long run, the majority would like to be able to present NFTs in parallel outside their digital repository, the wallet, i.e. in physical form in their living environment.

The assumption that technical NFTs are primarily about speculation prevents the nearly 40 percent of collectors who have not had any experience with NFTs yet from buying. Technical complexity is also an obstacle, as the quarter resents the expectation of not being able to “live” with artwork such as a picture on a wall or a sculpture.

The fear of being hacked or robbed is less obvious. However, 31 percent of all those surveyed, not just newcomers, stated that they would be more likely to purchase NFT art if they felt more secure in the purchase.

Cornelia Solfrank “//OG Flowers//”

The work is a rare collection of early network art created anonymously by the creator of Network Art, a historical history in the genesis of cryptocurrency. It involves issues of digital authorship, originality, copyright and ownership.

(Photo: OFFICE IMPART/panke.gallery)

The element of speculation plays a surprisingly minor role for NFT art collectors. Only a third is the potential profit from the important resale. Acquisition of knowledge ranks first at 90 percent. 60 percent find it good to belong to a ‘community’. At least 21 percent stated that they are already invested in segmented NFTs, that is, stocks in high-paying artworks.

A relatively weak to moderate gross profit expectation makes a crucial difference for crypto-savvy NFT buyers who prefer collectibles with value propositions, such as CryptoPunks, CryptoKitties, or bored monkeys. A group of crucial importance for the Art Basel UBS Art Market report, in addition to the survey of its affluent clients.

These wealthy clients, in turn, played a secondary role to Art + Tech Report. This is proportional to the fairly manageable amounts that are used on average in technical NFT. 62 percent of respondents spend no more than $1,000.

The report’s authors have every reason to be optimistic about the art future of NFTs. Three-quarters of those surveyed plan to acquire at least as many technical NFTs in 2022 as they did last year.

more: Book Review: How to Get Rich with NFTs

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