In this post, we will discuss where we are with the NFT landscape and how things have pivoted in the last few years. Back in 2021, I had sat down with author and professional Magnus Resch to discuss what NFTs are. Let’s dive into it.
Art & NFTs - A Conversation With Magnus Resch
Who are some of the top artists out there?
The answer to the question of “who are some of the top artists out there?” can be answered in one word: crypto. Crypto art is a weird and fascinating new form of expression that allows you to buy and sell unique digital artworks using cryptocurrency like Bitcoin, Ethereum or Litecoin.
This form of online art has grown so quickly since its inception in 2016 that it’s now one of the top trends on social media platforms such as Twitter, Reddit and Instagram. It’s also attracted some very big names from other industries including Logan Paul who created his own custom ERC721 token earlier this year which he dubbed “SADBOY”. NFTs have been growing in popularity ever since crypto kitties became popular. NFTs have been growing in popularity ever since crypto kitties became popular. Crypto Kitties are digital assets that are unique and non-replicable, like art or antiques. These types of NFTs can be exchanged between buyers with cryptocurrency on the Ethereum blockchain. They’re a new way to sell art, but as always with these types of things there is more risk than reward. This popularity peaked recently when Logan Paul bought a digital trinket for $5 million dollars. This is the highest price ever paid for any type of digital asset.
These tokens are currently being used in almost every field imaginable.
NFTs are being used in almost every field imaginable, from gaming to art to interior design. As an interior designer, I was really curious about how to implement them into our client spaces, and what exactly they provide in terms of value and long term investments.A lot of today’s NFT buyers don’t understand what they are purchasing. While they might have heard of blockchain, they don’t know how it works, and that’s fine. We all have to start somewhere. But when it comes to buying art on the blockchain, many people are only concerned with whether or not the piece is “authentic”. You see, if you buy a traditional artwork from an auction house or gallery and you get ripped off because it was a fake (which happens all too often), you can always sue them for damages or get your money back at least in terms of value lost—but not so with blockchain-based collectibles: since nothing physical exists except for the digital record itself, there is nothing tangible for lawyers to go after if there’s a dispute about provenance or authenticity.
The authenticity of blockchain-based digital art is questionable.
The authenticity of blockchain-based digital art is questionable. The blockchain is a decentralized and immutable public ledger that records transactions. It’s not controlled by any one entity and can be publicly accessed, meaning anyone can view the content stored in it. Records are made up of data organized into groups called blocks, which are linked together in chronological order to create an unbroken chain—hence the name “blockchain.” Encryption ensures that only those with access to keys (usually the owner) can read what’s stored on the blockchain; even if someone gets hold of your key, they’ll still be unable to view or edit its contents without breaking through encryption first.
A crash of crypto-art market.
In the past few months, we have seen a big drop in the price of crypto-art. The market is still in a slump and it seems to be hard for most artists to sell their paintings. The reason behind this is that people who bought paintings with bitcoin (BTC) don’t want to spend their BTC anymore because they don’t believe that it will be more valuable than fiat currency in future. So, if you are an artist who made a lot of money from crypto-art sales and now you want to buy some new artworks with your crypto assets, that’ll be tough! There are very few options available for buying artworks with cryptocurrency at this moment and most of them are expensive.
Most NFTs are worthless.
While NFTs seem to be a revolution in the world of finance, they actually aren’t. They’re not backed by anything, so they don’t represent any value at all. In fact, some NFTs are just pictures of cats on the blockchain (see CryptoKitties). NFTs don’t have any intrinsic value, which means that if you try to sell one online, people will probably laugh at you because there isn’t even anything behind it! It doesn’t mean that a picture of your dog eating cheese is worth $0.99 like on eBay or Amazon; it’s just a digital image stored on an internet server that someone has access to and can view whenever they want!
More than half of art dropped on March 11 were sold at a loss.
You may be wondering how much of an effect the NFT market drop had on artists’ bottom lines. The answer is a lot. In fact, according to a recent report from Art Market Research, more than half of artworks were sold at a loss on March 11—meaning that even if an artist had made money from their work before the crash, they likely lost money after it happened. This is because the average price decline was greater than 40%. The average NFT price decline is greater than 40% since its launch. The situation is getting worse and worse, with more than half of art dropped on March 11 being sold at a loss. Top artists are also withdrawing their works from the market, with prices falling up to 80%.
Top artists already withdraw their works from the market.
But the situation is so dire, that many artists have already withdrawn their works from the market. The reason being that they are not interested in NFTs anymore, or they don’t want to be associated with them. This was confirmed by leading artist Maximilian Bode: “I don’t want to be associated with a project that takes advantage of people who want to buy my artworks” As an artist myself, I can confirm this statement: I am now thinking twice before putting my work on a platform like OpenSea or Rarebits because of these scammy activities.
Scammers flood the NFT space with fake artworks.
NFT scammers are using the same techniques as they did with cryptocurrencies. They create fake websites, and put up fake artworks. These sites look so convincing, and their marketing is so good that people give them money for these works of art. This has been a problem for many years now with the cryptocurrency world, where people have been tricked into investing in fake cryptocurrencies by scammers who make it seem like you’re investing in an actual currency or coin when in fact it’s all just a scam to take your money away from you.
NFTs face growing awareness among regulators, governments and investors.
- The NFT market is in a state of uncertainty, as regulators and governments look at the market.
- NFTs face growing awareness among regulators, governments and investors.
- As a result of this growing awareness, the NFT market faces a lot of risks.
Gold rush before the crash found most miners broke.
The gold rush before the crash found most miners broke. It’s easy to see why so many people were drawn to NFTs: they were relatively easy to mine, and you could make a lot of money doing it. The problem was that there were just so many miners competing for those rewards that it became nearly impossible for any one person or group to earn anything significant enough to sustain themselves. In fact, many miners lost money trying to compete with other groups or individuals who had access to more powerful computers than they did! You can avoid this by being part of a mining pool–but even then, if your pool doesn’t end up as one of the largest ones around after some time (and its members don’t leave), then you’ll still have trouble earning enough from mining activities alone.
The art world has turned upside down. The gold rush of NFTs seems to be over, and the market is now doing a lot better. The average price decline is greater than 40%, but it’s not surprising because we saw similar patterns during the crypto-winter in 2018 when most of the coins lost their value by 80% or more.