The seven-day whirlwind that began with Twitter founder Jack Dorsey proving that nearly anything can be encoded – even his old tweets – culminated in Christie’s art auction Thursday, which bid a staggering $ 69.3 million for the eponymous Beeple work. … more can be bought at auction by Georges Seurat, Paul Gauguin or Salvador Dali’s works. Some observers asked the following question: Are volatile tokens out of control?
Even before the big auction house, artist Mike Winckelman, also known as Beeple, ran into the rare company of Jeff Koons and David Hockney – that is, living artists who could demand exorbitant prices for their work – asking some about the state of the market. For example, “NFT is a dangerous trap”, marketing expert and writer Seth Godin wrote on his blog, and the current obsession is “an unorganized, opaque mess with a bubble written on it.”
Meanwhile, on March 8th, an NFT copy of the intentionally burned Banksy board was sold in the OpenSea Market for around $ 400,000, prompting Xavier Ellis, director of the London Gallery, to tell The Telegraph: The shape of the pyramid that would ultimately lead a person What to burn. David Knowles, CEO of the art consulting firm Artelier, notes that buying contemporary art is generally risky, but buying non-exchangeable icons appears to be the “end.”
After this week the question arises: Is the NFT market simmering, and if so, will people be hurt?
On the way to fall?
Fabian Scheer, professor of business and economics at the University of Basel, told Cointelegraph: “NFT is an exciting innovation, but that doesn’t mean every drawing suddenly becomes valuable just because it represents ERC-721 or ERC. 1155” token “and adds:
“There are some interesting projects out there and they will likely remain, but the vast majority of NFTs will be completely useless when the hype is gone.”
“I don’t mean to say the situation is getting out of hand, but NFTs seem to be the hottest trend today and a lot of opportunists are jumping in the bandwagon hoping to make quick profits,” said Gary Bracy. Cointelegraph, Terra Virtua co-founder and CEO, told Cointelegraph. “I am afraid that I am saturated with humble products and newcomers who do not present to the party anything innovative or otherwise.”
What could be the reason for this assumption? “The skyrocketing prices are due to the fact that governments are pouring trillions of dollars into the global economy to cope with the damage from the epidemic, and this excess liquidity is everywhere on the table,” Snark.art co-founder Misha Liebman told Cointelegraph.
But do bubbles usually cause some damage when they burst? Prause replied, “I think people are smarter than that, and they won’t fall for any fools with the Emperor’s new outfit. Lipman suggested that if all goes well, the entire NFT community will suffer, adding:
“But I think it is important to note that the current focus and investment in this sector is also helping to create the much-needed infrastructure and tools that will make building projects using blockchain technology easier and cheaper.”
Blake Finucane, co-author of the NFT-based technical position paper titled Crypto Art: A Decentralized, told Cointelegraph, “A bubble is particularly difficult to avoid with NFTs because one of the notable benefits of NFTs is the ability to buy and sell, and exchange them instantly, no matter where Being in the world. ”So, she said,“ Flip is inevitable in a hot market where buying and selling is as easy as pressing a button. But in the short term, “just changing what they buy” is the biggest risk, she added.
Are buyers blind to the limits of NFT?
Godin went on to write: “NFT buyers may be oblivious to the fact that there are no supply restrictions.” “When it comes to art, Sotheby’s has a limited number of famous paintings and limited space for shelves,” he gave as an example.
Is this a valid criticism? While Cher agreed that the NFT market is currently overheating, Cher disagreed with this assessment, stating that while there are some people who can create an NFT, it is “impossible to make copies of a specific NFT.” With regard to the specific examples given in the post:
“When I have physical baseball cards, I can’t tell you how many copies of that rookie card. Plus, it’s easy to counterfeit cards. Both of these problems can be solved using NFT.”
Regarding the “famous palette” comparison: “I agree that most non-TV graphic panels are completely useless. But the same applies to pictures, which of course does not mean that the term NFT is fundamentally wrong.”
With regard to the analogy with “shelf space”: “There’s really no reason why he couldn’t get creative.