What is a Dutch Auction and Why it Matters in the NFT Space?

Dutch auction techniques can bring more money to artists and project developers but… are they good for NFT collectors?

If you have ever wondered how NFTs are commanding mind-blowing prices, it appears to be more than just the hype. The need to outspend other collectors with a bragging right of ownership acquired during a public sale event is a major motive for NFT enthusiasts and art lovers.

Many NFT art sales are using the timeless technique of auctioning to reach the best price possible and, at the same time, avoid high gas fees.

Even traditional auction houses have caught up with the NFT fever, especially the famed Christie’s and Sotheby’s houses who have recorded the top sales so far, including the most referenced auctioning of Beeple’s digital art, which sold for a whopping $69 million at Christie’s in March 2021.

However, it is more intriguing that NFT marketplaces and platforms are using the Dutch auction technique for bidding, which is different from the typical English method favoured by traditional auction houses.

NFTs and Art

Art sales are no doubt the biggest movers of the NFT space presently. Talk about millions of dollars exchanging hands — or rather wallets — across various NFT marketplaces and virtual auction houses. In the last month, collectors have spent over $100 million for artworks displayed in physical and virtual galleries, and generative arts are…