Apparently NFTs are still a thing and there is still much about them that I don’t know about. I’ve written negatively about them before, but a friend of mine who works in fintech has been educating me a lot about them. Now, of course I’m still very wary with investing in anything, and I’m really in no position to buy any bored primates, but I’m now more open-minded about them. A few things about them however.
1. They could be one of the only ways to truly sell and monetize digital art. Digital art is still art, and it is a bit unfair that they haven’t been able to be part of the art market until NFTs came around. This is similar to my complaint about anatomical/scientific illustrations. Why are they not seen nor exhibited as high art? There should be room for them in galleries, the same way there is room for most kinds of art. The only difference with anatomical/scientific illustrations and digital art is that the former can be monetized while the latter hasn’t been able to until NFTs came around.
2. The NFT market, much like the cryptocurrency market will always be in a state of ups and downs. I prematurely predicted the demise of the NFT market months ago and yet they are still here. Many NFTs have lowered in value since then, but many are still worth the initial investment. And me, I’m sitting here eating crow.
3. Many if not most NFTs are bad art. The percentage of bad art among NFTs compared to just plain digital art is considerably higher; I’d say 98% of NFTs are bad art. And it naturally will be that way for two reasons. One is that most of the NFT buyers are in it for the investment. They are not in it for the art. The second reason is that much like the Bored Ape Yacht Club, lots of NFTs are a set of similar images with a randomized set of traits that are digitally generated. Make 10,000 similar drawings, randomize their features, have people bid on them or set prices on them based on the rarity of the features an image has.
4. I don’t think many artists are making digital art and turning them into NFTs on a 1:1 ratio. I think that’s a rarity. The story of NFTs helping unknown artists in developing countries finally make a living off their art is a fairy tale that is only true for the smallest percentage of the market.
5. Most NFTs will not increase in value. There’s simply too many of them, and the initial prices of NFTs that made the news last year were so high that there’s nowhere else to go but down. Just check out what happened to the NFT of Jack Dorsey’s first tweet. It was sold for $48 million, and on the most recent auction, it barely got $300 in bids.
6. Celebrities who promote NFTs or who show off their purchases are in it for themselves. They are actively trying to increase the value of their NFTs before selling them. Did anyone really believe Jimmy Fallon and Paris Hilton when they mused about the uniqueness and artistry of their bored apes on the ‘Tonight Show?’
7. As incredulous as I am about the metaverse, NFTs will be an integral part of it. Basically, anything that is traded over the Internet for monetary value that has a limited amount functions as an NFT. The only difference is the blockchain element. If the metaverse does become all-encompassing as Mark Zuckerberg wants it to be, then we have no choice but to be involved in things like NFTs.
8. I am still skeptical of the element of the artist earning a percentage each time their artwork changes hands. This was one of the initial selling points of NFTs and I didn’t really see a point in it. Why would they get a royalty for items that they already sold? If I sold a painting, I don’t care if it increases in value when it gets resold years later. Good for the buyer. Good for me too because it means I’m talented enough to command such prices. But getting a percentage of the sale? Why? And when does that stop? Until I’m dead?
9. I am still dismayed at the cost of minting NFTs, both monetarily and environmentally. Apparently, the technology is getting better and the process will become greener, but who knows when that would be reality and whether that would also affect the price of minting NFTs.
10. Will I be making NFTs in the future? Who knows? I dismissed them prematurely last year, and now I’m no longer sure. I will need to talk to more people about them. I still need a lot of education.
11. I believe there are two camps when it comes to looking at NFTs. One camp are old school artists and the other are artists willing to try out new things online. During the beginning of the pandemic, I was trying to sell an idea to a friend of mine who owns an art gallery. It was a virtual art gallery that people could navigate in 3D online. She dismissed the idea as too fanciful and would require too much effort on her part. I tried to volunteer my services but she shut me down. Two years in, many galleries and artists are doing shows online one way or another, including virtual 3D galleries. Boy, did I feel vindicated.
I don’t want to be in the old school camp with my friend. I’d like to be more open-minded.