"NFTs are shaking up the art world... one just sold for $69 million dollars." - New York Times
"NFTs could solve problems that have dogged the art world and other markets for centuries. Think of a nonfungible token as a unique digital serial number that certifies the authenticity and ownership history of an associated object." - The Wall Street Journal
“NFTs have sold for millions, while those who flip NFTs have made nearly 1,000% profit in many cases. Crypto art flippers have made headlines with record sales. Such as an art collector who sold a 10 second video artwork for $6.6 million after buying the Beeple project for $67,000 in October — nearly a 1,000% profit” - Business Insider
“A non-fungible item is a one-of-a-kind item that can't be replaced by something else. NFTs allow someone to buy a unique piece of digital art, and the buyer is the only one in the world to own that original piece. NFTs are a new type of investment, but some have already sold for tens of millions of dollars -- proving that they can be lucrative.” - The Motley Fool
What are NFTs?
NFT stands for non-fungible tokens, an electronic token representing a digital piece of artwork. These tokens, in turn, use cryptocurrencies like Ethereum or Cardano to run and validate. NFT isn’t the item itself, it’s like a house deed or car title, the NFT represents ownership of the artwork. It tells everyone else in the world that you own something, and no one else can lay claim to it.
If you buy an NFT through a crypto asset marketplace, it’s yours to keep in your digital wallet, or put up for sale on the marketplace. When sold, all computers on a decentralized network record the transaction on a shared ledger, which, in effect, is a certification of authenticity that can’t be altered or erased.
NFTs allow someone to buy or sell a unique piece of digital art, and the buyer is the only one in the world to own that original piece. NFTs are tokens that we can use to represent ownership of unique items. Celebrities, investors, collectors and the general public are now investing in NFT because it provides a unique connection to the creator that does not exist with any other art form.
NFTs are designed to give you something that can't be copied: ownership of the work! Marko Stout’s NFT provide a valuable and unique diversification to any investment portfolio. Unlike crypto coins, which are identical and worth the same, NFTs are unique. An NFT is worth what someone is willing to pay for it, which can be a lot if the NFT is made by a famous artist and the buyer is a wealthy collector.
Reasons why you should invest in Non-Fungible Tokens (NFTs):NFTs have proven to be a profitable form of investment owing to some of the following reasons:Creates Value for the Tokenized Asset: NFTs create a medium whereby physical objects like art works can be tokenized, thus eliminating the duplication of such art work and limiting ownership to the artist. This in turn creates scarcity for the art work and hence, value for it.
It provides Investors more Liquidity: Tokenizing assets gives investors more liquidity over their assets when they need it. An example is when a virtual land owner decides to rent out his/her virtual space to advertisers or influencers for a fee, while still retaining ownership over the land. The virtual land in this case still belongs to the owner, but part of it is liquified as rent.
Potential for growth and development: NFTs possess potential for growth and development of the land sector. Pegging NFTs to land pieces has proven great potential for growth and development, for instance in real estate, owning and controlling virtual lands gives you the power to decide what you want to do on your land. You can decide to rent it out, build up a solid and secure business for advertising or online sales.
Today, we stand at the precipice of change. The NFT market means that you could start making money from things that were once untradable digital art and even the traditional world of physical art and collectibles may join the NFT revolution.
Why Is Everyone Investing in NFTs?
In March the graphic designer Beeple saw the NFT relating to his compendium of 5,000 cartoonish images Everydays, the First 5,000 Days, go for a eye-watering $69.3 million—making it the third-most expensive price ever paid for a living artist. In the space of just three weeks, we have seen almost all the accepted norms of the traditional art market shattered. Only Jeff Koons and David Hockney have achieved more. The buyer of the NFT was an Indian programmer, Vignesh Sundaresan, a crypto investor and founder of the NFT fund Metapurse.
Then the Dubai-based painter Sacha Jafri achieved a record of sorts by creating the world’s biggest painting (18,000 sq. ft). Offered in a charity auction in Dubai, the Brobdingnagian oeuvre was bought for $62 million by another crypto-entrepreneur, Andre Abdoune, propelling Jafri into sudden fame as the world’s fourth most expensive living artist.
Adding to these unsettling events, in a charity auction at Christie’s in the same month, Banksy’s Game Changer (2020), celebrating health workers as superheroes, sold for a record £16.7 million ($23.1million), four times estimate and setting a new record for an artist who has never had museum validation.
So what is happening here? The traditional hierarchies of the art market, where values, both monetary and aesthetic, were established and policed by art historians, curators and museums, are being assaulted by a new breed of wealthy new players, with new tastes and “new” money. Their wallets are stuffed with the currently surging cryptocurrencies. The traditional art world may sniff at some of their choices—but they don’t give a stuff. Beeple and others such as Jafri, Banksy and KAWS, these are artists they respond to, or think are a good investment.
NFTs are only as good as their underlying asset:
You’ll find thousands of small digital artists selling works for less than $1000. And if you like a particular artist you buy an affordable piece or two, even if to give the creators some financial support to keep doing their work. However if your looking for art as an investment you should collect a well-known artist such as Marko Stout, Jeff Koons, Banksy and KAWS. There are a variety of marketplaces on which to buy and sell NFTs, with the leading services being OpenSea and Rarible.
Check out Marko Stout NFT collection now available for collection and investment on Rarible!