Berlin British artist Damien Hirst is a market strategist. He has also entered the field of cryptography. In 2021, he digitized a board of ten thousand dots on paper into non-fungible tokens (NFTs) priced at $2,000 each.
Buyers can choose to keep the NFT, which is a digital work with a digital certificate of ownership, or purchase the painting. Any remaining paperwork will be burned in October 2022. Most customers’ preference for the original may be an indication of weakness in the cryptocurrency market.
Everything is an intelligent money machine, which, according to the will of its author, turns art into currency and currency into art. This market offering is just one of the rampant production of NFTs in Corona 2021. Its highest valuation is the legendary $69 million, which was compiled from 5,000 images by American digital artist Beeple at Christie’s in March 2021. That record price is still valid today.
Since that time, countless cryptocurrency brokers have been active in the market. But he still talks about security issues, strong price volatility, and most recently with the sharp downturn in cryptocurrencies – minus 70 percent.
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While the UK Supreme Court classified NFTs as “proprietary” in April; But that doesn’t stop hackers from operating in a still largely unregulated market and even distributing copies (tokens) of stolen art, as has already happened in China.
Database Journal Art price He complains that there are large numbers of replicas of almost all known NFT projects traded on the largest marketplace, Opensea. In February, this provider removed 1,138 NFTs that were unauthorized by their creators, including Anish Kapoor and Damien Hirst.
As a new line of business, NFTs have a strong charm for professional collectors on the Internet, and not just them. One of Art Basel’s UBS The Art Market Report 2022, which was launched, reported that 56 percent of wealthy art collectors surveyed planned to purchase digital art and concluded: “There are no signs that interest in non-art technology will wane in 2022.”
Research conducted by NonFungible Analysts contradicts this. They revealed in June that NFT Wallets’ browser extensions used to access NFTs and their marketplaces have shrunk by 88 percent since September 2021: from 119,000 to 14,000 “digital wallets.”
Takashi Murakami apologizes for the low prices
In February, Sotheby’s canceled a last-minute auction of 104 cryptocurrencies valued at between $20 and $30 million due to a lack of bidding. And that’s not all. There’s also a drop in the price of expensive art that doesn’t really deserve the name.
Japanese artist Takashi Murakami, copies of which are also circulating, apologized to collectors in June after the value of his “Flower” NFTs dropped from $260,000 to $2,000. Cryptocurrency prices, which generally collapsed in the first half of the year, also fueled the decline in dazzling digital art prices.
A good example of this is the humble brains of CryptoPunks, one of which was bought for $11.8 million in June 2021 and dropped to $139,000 in May 2022. A BoredApe Yacht Club series puppet, which was highly coveted last October, has slipped from $513,000 in April to $161 in June. A robot portrait by digital artist Snoop Dogg fell from $32,000 in April to $480 in June.
Token business is declining
The only glimmer of hope was the NFT video recorded by Dutch goal scorer Johan Cruyff from 1973, which has been upgraded to the Football Adventure package.
With the mathematical exceptions, these are dips that reflect a generally contracting cryptocurrency technical market. New service providers are finding it difficult. Coinbase, a cryptocurrency trading company, has invested $600 million in its marketplace which was launched in May. But the token business dropped from $75,000 to $19,000 in the first six weeks.
Critics have long viewed NFTs as overrated. Billionaire Bill Gates is one of them. And financial website CNBC recently stated on the record that such actions are “based 100 percent on a solid theory for fools.” From a conservative point of view, nothing can be added to this.
more: The art of cryptography: NFT: Yuga Labs buys rights to CryptoPunks