NFT between Crypto Art and Finance
Blog 05/07/2022

NFT between Crypto Art and Finance


What is crypto art 

Crypto art is an art form based on the world of cryptocurrencies, on blockchain technology and NFT and consequently, on cryptographic art.  
All digital or digitised works that are published on a blockchain belong to crypto art. 
Specifically, a work of crypto art is a digital content whose uniqueness is guaranteed by the blockchain block ledger system. 
To be sold, the digital works of crypto art are converted into NFT, the acronym for non fungible token, non-divisible and non-corruptible digital objects, which guarantee the uniqueness of the work. 

How the blockchain for selling NFTs works

To better understand the benefits of NFTs in the world of art, we should know what the blockchain is and how it works. 

The blockchain is a kind of decentralised ledger, that is, a huge ledger of all transactions that are entered through the resolution of cryptographic operations. 

The Blockchain system operates based on a technology that records data transactions on multiple computers. 

The validation protocol is the main element through which the security chain is determined in the Blockchain circuit. 

The algorithms that carry out the validation process verify that each new entry meets precise criteria, thus preventing that the data are tampered with, falsified or altered. 

Considering that the data do not reside on a single physical drive, but on the computers of millions of users, they are practically unassailable.

This is why we speak of a decentralised system.

What can be bought and sold with crypto art 

The answer is any work that can be digitised. 

Crypto art can cover many genres: images, audio video and much more. 

All digital works can become an NFT. 

Just as you can create a physical work in the form of a painting or a piece of music and then sell it, NFTs can also be created. 

Just think of Achille Lauro who created an NFT of his heartbeat during a concert

Once an NFT has been created, it will be the market and the willingness of the buyer to set its value. 

At the moment, the most popular crypto works are certainly images, but photographs and videos are also being increasingly sought after in the metaverse. 

Obviously, there is no shortage of requests in the world of video games, the sector in which crypto art was born. 

The world of fashion is not far behind too, and that’s why stylists and designers create unique NFTs which sell at a higher price than the cost of the physical work. 

Just think of the example of Gucci who sold an NFT of a pair of shoes at a higher price than the physical ones sold in the store. 

If you want to know more: From NFTs to Gucci's virtual sneakers, clothes and accessories in JPG format 


Why buy and sell digital works

There are many reasons for buying and selling digital works: collecting, supporting an artist’s project or for profit.


Pure collecting 

Yes, collectors also exist in the metaverse. 

Some people are buying crypto art for the simple and pure pleasure of owning a unique digital object, therefore without any future profit or intention to resell. 

Metaverse collectors are people who are passionate about particular niches and wish to possess objects which they deem unique and priceless. 


To finance young digital artists

Some people buy NFTs from the art world to support their favourite digital artist and to help and encourage him/her to produce new and better content. 

It is precisely in this sector that artists who are not yet famous manage to emerge and find the space and funds to advance their careers. 

NFTs have created a horizontal system in the world of crypto art (and beyond) that allows breaking down the across-the-board barriers present in the real world. 

In the metaverse there is no need to wait for a work to be exhibited in a gallery or to resort to a thousand intermediaries, just publish the work and the market will do the rest. 

You might be interested in: NFT: what they are and what role they play in the metaverse

A not insignificant concept of freedom that opens up horizons of infinite possibilities for every individual. 

To make a profit

As with all sectors, crypto art and its NFTs are also a system to earn money through investments

The deal occurs when you manage to buy a work that acquires value over time and to sell it at a higher price. 


Art, artists and NFTs

The world of art is a non-digitised world that has undergone a huge transformation in the last two years, thanks also to the pandemic. 

Covid has prompted artists and industry professionals to embrace technological advancement by integrating social networks, digital strategists and much more. 

With the sale of Beeple’s work, "The Last 5000 Days", for the sum of 69.3 million, the art world understood how blockchain technology and NFTs can be a new lifeblood for the entire sector. 

From that moment on, artists, collectors and gallery owners, who were debating how the blockchain could be useful to the art world, simply began thinking and asking how to buy and sell digital works. 

NFT technology opens up the doors of infinite possibilities to all artists, facilitating careers and earning opportunities. 

Once again harking back to Beeple (real name Mike Winkelmann), the fact emerges that he was not a canonical artist who exhibited in galleries and auction houses and that blockchain and NFT technology have made him the Third highest paid living artist in the world

Many artists have decided to enter the world of crypto art even if not all of them succeed. 

To enter this world, it is essential to understand that it is the community that decides the value of a digital work and decrees the success or not of an artist. 

Simply transforming a work into an NFT does not make its sale automatic. 

What determines the value of an NFT?

If evaluating a physical and material work of art is difficult, giving a value to a digital work is extremely complex

The factors that determine the price of an NFT are many and are not always clear and transparent, especially when trying to estimate the price of a digital work of art. 

Many people wonder how a digital file, which can be saved and stored on one’s own computer by everyone, can be sold for astronomical figures. 

The concept is easily explained if you think that what really matters for those who buy an NFT is the fact that they possess a piece of Blockchain and are acknowledged as the sole owner of the token associated with the digital art work

Whoever buys an NFT linked to the world of crypto art is not at all worried if a copy of the digital work is saved on millions of computers because he/she is the true owner and the blockchain guarantees this. 

The owners of art galleries are also moving to develop a virtual world in which to exhibit digital works of art; the metaverse takes shape. 

One of the most famous places where you can buy land and build art galleries to exhibit works is definitely Decentraland

NFT Finance and Crypto Art?

Many people are investing or are thinking of investing in NFTs, although there are those who wonder if it is not just a financial bubble.

The question is legitimate because when a market grows very fast, and that growth seems unmotivated, it could be a financial bubble. 

What is certain is that the whole NFT market is expanding at great speed day by day. 

Finance, like art and other sectors, has certainly undergone a notable change with the arrival of the metaverse and its cryptocurrencies, but only time can tell us where all this will lead, certainly to a great change. 

Financial bubbles are very dangerous, just think of the first era of the web between 1995 and 2000, where the speculation by the first companies operating in the sector was so excessive, in relation to the profit and turnover possibilities, that the market collapsed, losing most of the value it had accumulated. 

This event led to many companies going bankrupt. 

Many people are now investing in this type of asset to obtain a speculative gain in the short term, but if the NFT frenzy were to collapse, investors could find themselves the owners of assets that are no longer worth anything.

The best-selling NFTs in crypto art

There are many works that are bought and sold every day in the form of NFT, from the minor to the great artist. 

Obviously, the works sold for millions of dollars are the ones that cause the most sensation and therefore here they are: 

● The Last 5000 Days: a collection of 5000 contents uploaded in as many days, Beeple's work was sold for 69 million dollars by the largest auction house in the world, Christie's. 

● Nyan cat: a popular gif sold for the modest sum of $ 587,000. 

● NFT Yourself: the sale of the copies of the Kings of Leon album, which includes a limited-edition vinyl, an artwork and the digital edition, brought in $ 2 million in profits.