Two weeks of online bidding on a work sold for $69.3 million. This is what propelled the author of the collage “Everyday: the First 5,000 days”, Beeple, to the rank of the most expensive artists of their lives. This new record for a digital work produced by Christie’s marks a major step in the NFT boom.
digital trading cards
NFTs,”non-fungible tokens” in English are digital certificates that allow you to buy virtual works of art, video game objects or digital images such as GIFs in bitcoin. This secure online code is stored on specific platforms such as Sorare or Pokmi, an asset that guarantees the buyer the security inherent to the blockchain.Not interchangeable by definition, the main difference from common currency, this unique token is a digital certification dedicated to a single work, which gives it irrefutable authenticity. Specifically, what can you buy with an NFT?Simply put, anything that social network Twitter founder Jack Dorsey sold his first tweet for a modest $3 million, in fact the NBA has certified short passages of games to sell to his fans. trading cards they are rare because they are unique, and their rare raises the bar.
A success in every way
Obviously, one of the arguments that has won the general public is accessibility. In a world where works of art and luxury items, in their material form, are out of reach for the general public, NFTs make these objects affordable. Some sell for a few hundred euros, with the added benefit of a privileged relationship between the artist and the buyer. Indeed, unlike the big brands and artists known for being impenetrable and for which we buy through resellers, no middlemen exist on these new ones market. A blessing for fans who, thanks to NFT, not only get their hands on a unique, original but also safe piece. The identification conferred by the blockchain removes the barriers often criticized for these sectors. Counterfeiting is not possible because there are no two identical tokens, there is no problem of lack of transparency because each certificate is identified and identifiable. Their rarity gives value to objects and small artists become rising stars, as was the case for a young 12-year-old Briton, Benyamin Ahmed, who earned almost 340,000 euros in less than two months thanks to his series. Weird Whales† †NFTs make it possible to think about digital scarcity and make money from it”explains Aude Launay, researcher and author of art and money† Not to mention the snowball effect: the more the public took an interest in it, the more collectors craved new opportunities to publicize their works. Not insignificant benefits, but which sometimes do not exclude all risks.
Volatile, energy-intensive and risky
Who says blockchain, says volatility. And the prices of ether or bitcoin are no exception to the rule. Tweet from Elon Musk and bitcoin is down 15% as growing interest in NFTs pushes ether price higher. These currencies are affected in an unpredictable way and therefore their prices are never fixed and sometimes go very high. In addition, these digital certificates, which are linked to the blockchain, pose dangers to the ecology, with storage, transactions and highly energy-intensive operations. If bitcoin were a country, it would be 29 . to bee according to the BBC, the most energy-intensive in the world. And as if these arguments weren’t enough to deter artists, the risk of their digital works being put up for sale without their knowledge on platforms dedicated to “Non Fungible Tokens” will certainly make them think twice. Indeed, Devin Elle Kurtz, an illustrator in the United States, realized by conducting an online search that her works had been copied and signed by another person. A setback that divides artists today over using these certificates to sell their work. Are NFT’s heydays losing their luster?
For more information on NFTs, @nftpourlesnuls