Benefits of an NFT Art Collection
by Josh Hy - The Dezinr
It was an evening jacket-formal event, set in a historical British mansion in London, UK. A full house of guests raised a glass to toast yet another NFT platform launch, which focused on auctioning off luxury NFT art. It was an all night affair, and be sure, there will be more launches and mixers happening worldwide as the NFT community grows with more artists, collectors, enthusiasts and curious folk.
The concept of Non-fungible Tokens, or NFT, isn’t new though. Only recently has NFT started gaining a larger public following, trickling more and more into mainstream conversations. Digital artwork is currently the most popular type of NFT, which includes all visual artforms: photography, hand drawn, graphic design, etc. The first ever NFT art piece uploaded, or ‘minted’, was in 2014 by Kevin McCoy (Quantum), and sold for $1.47M in June 2021. CryptoPunks – famous for their pixel artwork – began in 2017 and is the oldest collection and most expensive NFT still in circulation today. One of their artworks, CryptoPunk #7523, or “Covid Alien”, also sold in June 2021, for $11.75 Million USD.
A handsome purchase for a computer generated pixel image, which might have future art historians considering it a new wave of Millennial Dadaism. Until then, it’s a common question to ask, ‘Why the excitement?...’.
It’s the entire concept of NFT and the possibilities in this new space that has people enthusiastic. The NFT marketplace is dismantling the power of traditional institutions like art galleries and art auctions. Gatekeepers who defined what is art, controlled the space for displayed creativity, and its value. It’s an artist market, and collectors now have access to a larger selection of all kinds of creations. It’s a great time to get into it.
5 Things To Know as an NFT Art Collector
Transparent and Legitimate Ownership. With every NFT piece there is a ledger that records when it was officially minted online, all the sales and ownership transactions. And can be used as a legal document for proof against any forgeries or copies, and the legitimacy to your art piece.
Invest in what you like. Without gatekeepers, artists have freedom to be themselves and to create what they want, without limitations and expectations. Collectors can also invest in what interests them, and can get in on the ground floor of buying art from the next Picasso.
Affordable. From two perspectives: one, for getting into the market early while it’s still new. And second, catching NFT pieces on the ground level, before they potentially become highly sought after and expensive in the future.
Limited Editions. Similar to trading baseball cards, some NFTs will have an open number, or limited copies available for sale. Others will only sell the single copy, making it a “one-of-a-kind”, and rare. Meaning you will be the exclusive owner of that original artwork.
Benefits and Assets. Some NFT creators offer their collectors special benefits, such as discounts, limited editions or physical assets. The rock band, Kings of Leon, has offered special album releases to their NFT collectors. In the future, they can include other perks like limited concert tickets. Physical assets – or “Real-World Assets” – are one of the most popular sought after benefits. When purchasing a digital NFT, the owner may also receive a physical copy (either the original or a limited print). Keep an eye out for those. Artists selling NFTs combined with physical elements are ahead of the game, as they will hold more value in the future.