BITES // 05.5.21 // NFT BONANZA
Every month we collect the best pieces of content published on the web and share them with you, because we believe that the most extraordinary thinking is inspired by looking to unexpected places. BITES is a reading list for those who want to bring a little of the outside, in.
1. FROM DUCHAMP TO MEME ARTISTS
It makes sense that the modern/high art world has become the initial powder keg for the NFT explosion. This is a market driven by objects with an inflated sense of value. Since making headlines in March, Sotheby’s has had more record breaking sales of NFT art. But there is an emerging discussion around the fact that everyday artists are not able to capitalize on NFTs. Initially, it was argued that because of the blockchain record, artists that sell their work are entitled to a cut anytime their art is sold. This further makes the case that NFT’s true value is in ironclad record-keeping and authentication. But according to data sourced from one of the largest NFT marketplaces, the majority of digital art sales are for less than $100. This calls into question NFT’s ability to be a true disruption of wealth and commerce in the art world.
2. THE INEVITABLE BACKLASH
There is a collective eye roll towards NFTs as the larger public wants to dismiss them as a flash in the pan. John Cleese was explicit in calling NFTs a huge waste of time and then offered a quickly scribbled drawing for auction. SNL did a mock parody song, which is always the accurate litmus test for when a trend has reached critical mass in the pop culture landscape. Additionally, a more serious discussion is emerging around the carbon footprint of NFTs as French artist Joanie Lemercier calculated the sale of a single piece of NFT art is the equivalent to two years’ worth of power usage in his studio.
3. THE GOLD RUSH CONTINUES
The current gold rush is going full force and is built on an impulse to turn anything into an NFT with the hopes of garnering the same hype or wealth the art world has experienced. This has resulted in an on-going series of “NFT firsts”. The first NFT house. The first genome NFT. An NFT of a NY Times column even sold for $560,000. One user has even offered a recording of his flatulence over the course of the year. These headline grabbing examples feed into a negative sentiment around NFTs.
4. THE ABSURDIST (BRAND)WAGON
Given the perceived absurdity of NFTs, brands saw an opportunity to join. Charmin is the quintessential example with their “NFTP art”. Other CPG and food brands have gotten quick PR wins with one-off digital art. Brands that have humor and irreverence core to their brand identity can jump on this craze in somewhat authentic fashion. It must be noted that most of these NFTs are sold for the purpose of raising money for charity. One could argue the same deep pockets that are patrons of the NFT art are the buyers (not everyday consumers).
5. MUSIC FANS ACTUALLY GETTING SOMETHING
The music industry has pointed to a way NFTs could actually engage with an actual fanbase. Eminem is dropping his first NFT collection based on actual collectibles he owned as a child. These will also include access to instrumentals (giving die-hard fans a reason to buy). This notion was toyed with initially by Kings of Leon when they dropped their new album as an NFT, bypassing middlemen and giving content and experiences directly to their fans. NFTs could very well become a part of every album release cycle for larger artists.
6. THE PROVENANCE OF COLLECTIBLES AND PURSES
NBA TopShot has had over 200 million in sales making it one of the biggest marketplaces for NFTs. They are essentially trading cards: you can purchase specific video clips licensed officially from the NBA. This has made NFTs slightly more mass and accessible. TopShot has been so successful, now the famous baseball trading card company is putting their hat in the ring. The major appeal is that ownership is verifiable and irrefutable. It’s this idea that is driving Nike and even fashion brands to experiment with NFTs as an effective way to authenticate ownership. This is critical for industries with rampant forgery and reselling. Ultimately, what NBA TopShot has shown us is that true success in this space is rooted in understanding how real world behavior can be transferred to the digital space.
TAKEAWAY:
Two questions to ask yourself during any hype trend: What problem is it solving & what real-world behavior is being transposed to the digital world? It’s important for brands to fight the impulse to join a trend out of fear of being left behind. Brands need to take the time to look at what’s really happening and look at the real life behavior their consumer is doing. This careful and thoughtful approach is the best way to engage with a cultural trend.
