This article originally appeared onVICE Italy. You could say I'm pretty obsessed with itMoney. After googling investment advice too many times, youtube is now targeting me almost exclusivelyjfeaturing ads featuring middle-aged men who have achieved financial independence through various meansPonzi schemes. Even so, until recently I had never heard of NFTs or Non-Fungible Tokens, a blockchain-based technology used to authenticate and track the history of a digital object.
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It took me a while to grasp the concept, but essentially each token is a unit of data represented as a line of code in a digital registerBlockchain. not howBitcoinor moneyNFTsare "non-fungible", meaning they are not interchangeable. For example, you can trade one bitcoin for another bitcoin and end up with the same but unique objects likeLieder, artwork or domain names cannot be perfectly replaced when exchanging.
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Recently, people have become increasingly used to NFTsTrade in digital artworksthrough online marketplaces like Nifty Gateway and SuperRare. Digital artists often face major copyright issues: unlike paintings or sculptures, their work can be reproduced endlessly without permission, reducing its value. But now artists can associate their digital work with an NFT, allowing it to be authenticated via the token's unique code. Since blockchain technology registers every transaction, the owner of the artwork can also prove that it belongs to them and protect it from thieves. Theft can still happen if theThe owner's account is hacked, but it is more difficult. According to many artists and collectors, NFTs could revolutionize the digital art market. As you may have heard, a collection of NFT artwork is byCGI artist Beeplewas recently sold through an auction housefor 58 million euros. As with any other speculative asset, buyers hope the NFT art market will boom and increase the value of their original purchase. However, some worry that the NFT market could quickly become oneunsustainable bubbleand crash, leaving inexperienced investors stranded.
There have also been reports of NFTsmysteriously disappearsafter purchase and indicates potential weaknesses in the new technology. Also, NFTs have become embroiled in increasing scrutiny around the world along with the cryptocurrencies they are bought and sold withEcological damageof digital products. These are exciting times for young digital artists, however. For years it has proven extremely difficult to monetize digital art, but now there is a whole new market for it. Even better for the artists,NFTs also have a "royalty" feature, whereby the artist earns a fee each time one of their works changes hands. I happen to know an artist, his youngestNFT collectionwent so well that he was able to quit his job. After years of busily selling merchandise, prints, and a few physical copies of his art, my friend (and former colleague)doveseems to have turned the corner. Equally jealous and curious, I asked him how he did it.
"Ok, But The Real Jungle Is Outside," by DotPigeon.
VICE: Hey, DotPigeon. How did you get into digital art?
dove: I starteddeviant, a famous digital art platform, at 16 years old. Then I stopped for years and only started using them again in 2017 when I set up my Instagram profile. I first heard about NFTs thanks@slimesundayin September last year. He's a big artist on Instagram who wrote a story about his drop on Nifty Gateway.
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I was curious, so I looked it up - and honestly, I didn't understand anything. I wrote directly to the Nifty Gateway page and said something like, "Guys, this is all very cool, but what are you selling?" They talked to me about the basics and finally said I could do a collection with them.
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How did it go the first time? I was completely new to this world - the collectors didn't know me, so they didn't want to buy my art. The collection wasn't in my usual style either – I didn't even promote it; I had no idea of the enormous potential of the community. The second drop I tried to respect my own style instead of following a trend. Know someone who bought your NFTs? What exactly can you do with it?
The first available date for a drop was January 6th. Even then, the waiting list was several months long. I worked on my first collection for two months, but it didn't do very well.
I know a few of them personally, but I've sold 1,300 so they only make up a small percentage of buyers. I know a few others virtually. Most buyers were international.
There's not much you can do with digital artworks - you can display them on screens, and there's a whole marketplace for devices to wall-mount or shelf-mount your NFTs. They also have virtual galleries and museums.
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Is there a difference between Nifty Gateway and other marketplaces? The second difference is how items are sold. For example, SuperRare works through an auction process, so you list your piece [usually not a whole collection], people bid for a certain period of time, and the highest bid wins. On platforms like Nifty Gateway, you can choose to run an open edition [sell as many pieces as you like], auction, silent auction, or limited edition.
These pages may all look the same, but they aren't. The first major general distinction is between curated platforms and open platforms. On a curated platform, there is a team that decides which applicants are allowed to mint [create NFTs] in their rooms. Anyone can shape new works on open platforms. Rarible and Open Sea are examples of open platforms, while SuperRare and Nifty Gateway will be curated. Curated platforms don't have exclusivity over the artist, but do have exclusivity over specific pieces,This means that an artwork cannot be sold on other platforms.
"Hey Alexa, tell everyone to fuck themselves" by DotPigeon.
What happens if one of your buyers resells your work?
The secondary market is one of the more revolutionary aspects of NFTs, allowing artists to earn royalties on their pieces. In the case of Nifty, when you fill out the contract, you will be asked to decide what percentage you would like to receive from a second sale.
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It's pretty easy. For example, if a collector was unable to purchase the artwork on the day of the drop, they can contact someone who has already purchased it. It is the seller - not the artist - who sets that resale price [then the percentage of the sale specified in the original contract goes to the artist].
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I know Nifty Gateway is pretty big on Discord. How is the community? How do you think the market will develop? Now new players have come along and made the market more established. But as more brands try to enter the market, galleries have to adapt. This could mean organizing digital shows and exhibitions - something most places would never have considered a few months ago - but it could also affect artist contracts and royalty clauses, for example.
There is a bit of everything - newcomers, collectors, artists etc. The atmosphere is very friendly and positive. I go to the server regularly, not only to talk about an upcoming drop or to promote my work, but also to chat for half an hour. The reason my second drop worked was because I had a relationship with the community - I gave them a preview of some of my content before posting it to another channel.
Of course the market will change. I've already seen many users complaining that there are too many open editions. Two or three months ago an open edition would have had 300 to 400 works of art, now it can be up to 5,000. This is getting on people's nerves, because art has to be scarce to be valuable.
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FAQs
Are NFTs a good way to sell art? ›
Most NFT art sells for the kinds of prices you would expect other good art to sell for. One big difference is that NFTs can allow digital artists to earn royalties on all future sales each time their NFT changes hands – this can be coded into the original smart contract.
How do I turn my art into NFTs? ›- Decide on a concept. Before anything else, determine a concept for your art. ...
- Choose your blockchain. ...
- Set up a digital wallet. ...
- Select the right NFT marketplace for you. ...
- Promote your NFT. ...
- Upload and mint your art token. ...
- Price the token and list for sale.
NFTs (non-fungible tokens) are one-of-a-kind digital assets. Given they're digital in nature, can physical works of art be turned into NFTs? The short answer is that yes, physical artworks can be minted and sold online as NFTs.
Where can I sell my NFTs as an artist? ›- OpenSea. OpenSea boldly describes itself as being the largest NFT marketplace. ...
- Rarible. Rarible is a community-owned NFT marketplace, with its “owners” holding the ERC-20 RARI token. ...
- SuperRare. ...
- Foundation. ...
- AtomicMarket. ...
- BakerySwap. ...
- KnownOrigin. ...
- Enjin Marketplace.
Using intellectual property without the owner's permission is called IP infringement, and an NFT creator can be sued for that. Selling art using copyrighted characters is also an infringement unless you have the permission of the copyright owner.
Why is it so hard to sell NFTs? ›Perhaps, many are under the impression that it is easy to sell an NFT because media outlets consistently report on the biggest sales. Still, the reality is that in terms of NFT art and NFT collectibles, the market is overcrowded. There are certainly more NFT artists than NFT collectors right now.
How much does it cost to turn art into NFT? ›On average, the cost of creating NFT ranges from $0.05 to over $150. The cost of creating NFTs depends on various factors such as the cost of blockchain, gas fee, marketplace account fee, listing fee etc. Ethereum and Solana are the most expensive and cheapest blockchain, respectively.
How do artists make money from NFTs? ›How Can NFT Artists Earn Royalties? The content creator, or original artist of the NFT, earns royalties through subsequent sales in the secondary market. For example, after the original artist/owner first sells the NFT, the buyer/investor may then sell the NFT to another buyer/investor in the secondary market.
How do beginners make money with NFTs? ›- Invest in a Play-to-Earn Tamadoge NFTs.
- Play-to-Earn (P2E) Silks NFT Games.
- Receive Compounded Gains from a HFT Fund by Investing in the Uncharted NFT.
- Invest In A Passive Cryptocurrency Mining Protocol.
- Invest in Promising New NFTs Early.
- NFT HODLing.
- Flipping NFTs.
- Minting Your Own NFTs.
How to Create NFT Art Work？ Click the button "Create NFT Now". Upload your image, choose the art effect you prefer. Apply the style to your image and then automatically make your image into an NFT.
Do I have to copyright my NFT art? ›
Copyright law does not give an NFT owner any rights unless the creator takes affirmative steps to make sure that it does — ideally, by executing a standard, formal copyright license to the work connected to the NFT.
Can I sell pictures of my art as NFT? ›Whether it be a portrait, landscape, drone, or sports photography, it doesn't really matter – every piece of art can become an NFT. Once you decide what photos to sell as an NFT, the next thing you need to know is how to sell photos as NFT, and for that, you'll need a digital crypto wallet such as MetaMask.
Do artists get paid for NFTs? ›Non-fungible token (NFT) creators have been getting paid on secondary market sales of their creations, but new entrepreneurs entering the space are foregoing those payments in order to pass savings on to collectors.
Are NFTs a good investment for artists? ›NFTs are an exciting new medium for collecting digital art, but they're no good as investments. The odds of losing some or all of your money on an NFT investment are extremely high. And with Blue Chips and index funds still around, you simply don't need NFTs to become independently wealthy.
Should I turn my art into NFT? ›If you already wonder if you should convert your art into an NFT, the answer is obviously, “yes, why not try.” The process of creating an NFT is neither complex, costly nor technical. All it requires is a set of creative skills and a personal computer.
What kind of art NFTs sell best? ›Digital art makes up the large chunk of NFTs currently sold on the market. The Bored Ape Yacht Club (BAYC) and Mutant Ape, a collection of different ape-centric art, currently stand as the most popular and expensive NFT collections.
Is there a downside to selling NFTs? ›Advantages of NFTs include fractional ownership of assets, royalty payments to the NFT creator, safe technology, and efficient sales. Disadvantages of NFTs include high minting costs, volatile pricing, and a high prevalence of imitation projects and fraud.
Do NFTs hurt artists? ›NFTs Won't Automatically Become Valuable
Every artist or musician wants to make it big. But NFTs are not the primary way to do that. If you craft a piece of digital artwork, attaching a rare crypto token to it alone will not make anyone interested in it. For many artists, scarcity is not a problem, but obscurity is.
How Can NFT Artists Earn Royalties? The content creator, or original artist of the NFT, earns royalties through subsequent sales in the secondary market. For example, after the original artist/owner first sells the NFT, the buyer/investor may then sell the NFT to another buyer/investor in the secondary market.
Do NFTs help small artists? ›NFT is a true game-changer for indie artists; you can earn royalty on your music forever. With NFT, you are a digital creator, and whenever your work changes hands or gets into a new hand, you get a cut. Imagine if your music appreciates about 200X; that's how much your income will also grow.