DW Digital Auctions Artwork – Summary | Economy | DW

Sven Wagenknecht is sure that “community” above all determines the success of the NFT auction. The co-founder of crypto industry magazine BTC-Echo has been monitoring the market with digital certificates – NFTs for short – since its inception. In the case of influencers, artists, or musicians in particular, it’s all about communicating to “create a mood,” Wagenknecht says.

critical society

Part of the “community” was critical of DW’s experience selling NFT – we reported it. At least some of the reactions on Twitter suggest: “Supporting the press as the planet is being destroyed by terrible art. This is not a good strategy,” the report states. In doing so, the user refers to the idea of ​​donating auction proceeds to RSF and criticizes the high energy consumption when creating an NFT on the Ethereum blockchain.

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Elsewhere, one user writes: “Don’t get involved there either. This is fraud and money laundering.” Objections that DW would like to address in other articles. Despite many reservations, DW decided to take the risk of trying NFT in order to understand this new market. You can find the reasons here.

The DW auction ended shortly before 9pm on November 17. This was preceded by 24 rather difficult hours, during which only three bids were submitted. The collector with the abbreviation podre got the contract. For 0.1337 Ether cryptocurrency units, podre received its first NFT from DW with the title PressFreedomX30 (DW 2021).

This equates to approximately $600. Auction platform Foundation.app deducts its 15 percent commission from that amount, and funnels the rest directly to RSF.

Many people have high hopes in the NFT market. On the one hand, there are artists who hope to find buyers for their work. Virtual plots in computer games were also sold as NFTs. And now Hollywood studios have also discovered NFTs, somewhat as a marketing tool for Marvel superhero movies.

The procedure is always the same: with the help of NFT, digital files can be converted into assets of potential value. We have described how to do this here.

What determines the value of an NFT?

podre with PressFreedomX30 (DW 2021) He got a deal or is he sitting on a worthless file? How is the NFT value created? The user asked this exact question during the auction. “What’s so special about your NFT? Should I buy German media history? Or can I deduct it from my taxes because it’s for a good reason?”

Good questions – we don’t have an answer to them either. The same user pointed out that the NFT of the so-called Monkey is bored -How to call his own. “I can be sure I’ll get the price it’s worth when I resell it,” he wrote on Twitter.

Cryptopunks from Larva Labs – Nothing Under $400,000

The value comes from the request. But there are already certain patterns in the NFT market. If the NFT is already sold at a high price, this means that the value has already been established.

Belonging to groups can preset the value. For example with so-called Cryptopunks. A total of 10,000 small split faces were available in NFT form very early on and according to the inventors of Lava-Labs, nothing is currently available for less than the equivalent of $400,000.

High costs as an obstacle

If you want to create an NFT, you will usually need cryptocurrency ether. There are actually relatively high fees for exchanging euros. Then came the costs of the so-called minting – the NFT minting. If the digital asset is created for the first time, an additional fee will be due to issue the NFT to the auction (listing). The last two operations cost the equivalent of more than 350 euros at a DW auction on PlatformFoundation.

Few winners and a lot of average

When NFTs are mentioned in the media, it’s mostly about cool transactions. For example, when the artist Beeple’s digital collage sold for $69 million in March. Or when selling a digital newspaper page The New York Times An article on NFTs raised $750,000 shortly after the Beeple auction.

But it is enough to look at platforms such as Opensea or Foundation to know that many NFTs find no buyers at all. So its providers leave their own costs for minting and listing. It’s a bit like any gold rush in the past. Few who are looking for money get rich. But smart businessmen who sell shovels and sieves to the knights of fortune.

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