Breaking Down Crypto Art and Why It's Here to Stay
Join me to explore this brave new world of NFTs and crypto art. Find out what NFTs are and the five reasons why I think they’re the future of art. Also see what they mean for African art and the hopes and fears artists have for the technology
“Adiya! Don’t you like art? Have you heard of NFTs?”. “Ugh? What the hell are NFTs??”. “NFTs. Non-Fungible Tokens?”. “Non-Fungus??”. “What???”. “What??????”
If you’re like me, you probably only heard about NFTs early this year, and likely from your techie friends first, not your artie ones. That’s because even though art made NFTs explode in popularity, NFTs can really be anything that exists in the digital space.
And they’ve actually been around a while but people have really started to get creative about what they are. Books, music, designs, videos, and any digital thing your mind can imagine. I mean, we all looked on with wonder as Jack sold his first Tweet as an NFT for almost $3 million, and as virtual land (guys, land you’ll never actually live on), sold on Decentraland for $1 million!
So the message is clear, if you can create it digitally, it can be sold as an NFT. One of the very first uses of NFTs was to buy and sell virtual kittens in this popular Cryptokitten game - remember it? The internet and kittens though…i can’t explain it.
But none of these NFTs have sold quite as insanely as art. Jaws dropped right through floors when digital artist, Beeple sold a .jpg collage file at a Christie’s auction for an eye watering $69 million (yes, US freaking Dollars!). If this isn’t enough to start a craze, I don’t know what is.
Then remember the animated Nyan Cat? The creator decided to sell it as an NFT and got almost $600,000 for it. That settled the rise of crypto art (ah…meaning art as NFTs bought using cryptocurrency). And if you need more convincing, here’s a list of artists (and their art) that have cashed out from crypto art sales. My eyes hurt just looking at that site. So yes, there’s money to be made.
But hold up! Do you even know what NFTs and crypto art really are? Before we go any further, let me try to define these…join me in prayer that i get it right - i’m just telling you what they told me…
First, what the hell are NFTs and crypto art?
Here’s the shorter version, and it starts from Blockchain.
Blockchain is a digital ledger (think of a ledger which shady betting sharks in crime movies usually have that comes to bite the bad guy in the a**) where every single transaction is recorded. This list (essentially) can’t be changed, come hell or high water. Every single time digital money (cryptocurrency like Bitcoin and Ethereum) changes hands, it’s recorded on that list. So you see, each entry on the list is linked to another - like a chain. But how do you make sure that each entry is actually correct? Many different computers on the network do this ‘verification’. And that’s how cryptocurrency works - digital ownership of money verified by computers on the blockchain network.
And if you can do this for coins, oh yes you can do it for other things too.
So when Ethereum (the second most valuable cryptocurrency after Bitcoin) standards got updated recently, it became possible to include some extra information into the Ethereum blockchain. We can now have these tokens, these Non-Fungible Tokens (NFTs), essentially part of (or living in?) the Etherium blockchain (like additional entries in the ledger columns). This is exactly why they can’t be replicated.
I pray I haven’t lost you yet.
Ultimately, when you attach this token, this NFT, it essentially lets everyone know that you’re the owner of an original digital file. Even if the original file is downloaded and replicated, the file can still be tracked to show that you, who bought whatever it is as an NFT, is the owner.
This is a pot of gold for digital artists who want their art to be collectibles like tangible, physical artworks already can be!
It’s also got a sweetener - for years, artists have been yelling (rightfully so) about the equity (or lack of) of not getting paid for their resold work. If you sell a physical painting, you’ve got no control, or even visibility, about who the buyer resold it to, or more importantly, how much. And if you become a bigger shot years later, others are reaping the rewards of your labor when they sell your art, but you usually have no idea. NFTs solve this problem because artists will always get a cut of the resell deal. Sweet!
With all the above - hundreds of thousands being made on a .jpeg/.gif file, plus the tech aspect of it that really is new for art in general, it’s no wonder that it’s become such a rave. It opens things up so much that literally anyone who can create art can actually put up their works for sale as an NFT and hopefully make money. Of course people are going to flock in droves to this. But will this flocking last?
This may be a bubble now, but here are five signs that crypto art is here to stay
Even though this current rave might look like the perfect definition of a bubble, it most likely isn’t. There are actually signs that crypto art is here to stay; especially for artist that actually are good artists, not opportunists. Here are five signs that crypto art is the future.
The rise of digital art
Digital art technically had its own explosion since the almighty Photoshop bursted in and innovated the hell out of the art world. Photography, graphic design, digital illustrators, digital collagists, you name it - the ascent of these as art in our minds, not just acrylic and graphite and canvas, has been beautiful to see. And with tablets, touch screens and software increasingly accessible to many artists, this art form has grown like never before.
Also, even though prices of digital art prints have been rising, they’re still generally cheaper than traditional fine art - meaning an amazing thing about digital art is how it has made art accessible to all kinds of collectors, and not just the typical stuffy, high and mighty type you first think of when you think of fine art. In fact, many digital artworks aren’t printed, but can be sold virtually for less. Some buyers don’t even intend to ever print - how about commissioning some digital art for your business to use in a digital campaign, or to display exclusively on your website.
For a lot of these kinds of everyday art buyers, crypto art make perfect sense. And even more so because they can easily resell the art for good amounts if the artist’s value increases.
The world is digital now - really, everything has a place online. So it’s no wonder that art collection is moving fully digital too.
The rise of cryptocurrency and blockchain
To say that cryptocurrency has been on the rise is an understatement. People have been fascinated by the idea of having currency that can’t be controlled by states and governments. Money that’s for the people, by the people. Everyone loves it except the states and governments cause…well, you know. And of course, the blockchain that makes cryptocurrency possible and safe is impossible to ignore and has even been explored for many other uses outside of money.
As both of these get more popular, people are sure to find different ways to apply it. Even now, we’re seeing cryptocurrency not just being traded, but actually being used to pay for physical goods, games, even something as mundane as groceries. And there’s even a cryptocurrency Mastercard now. It’s wild alright?!
Just think about it - in 2013, 1 Bitcoin was $1,200, but despite highs and lows lately as demand has grown and ebbed, 1 Bitcoin is now worth $34,000. Imagine all the new millionaires this has already made. New millionaires who would love to re-invest in art using their cryptocurrency. Oh yes, it’s here to stay.
The rise of NFT marketplaces
I’ve still not recovered from this - how is it possible that so many marketplaces popped up within a span of six months since we started hearing about NFTs? Like, how?
So many investors and entrepreneurs are backing these NFT marketplaces that connect sellers and buyers of crypto art. You actually can’t do business with crypto art without these cause this is where artists upload their work, and mint (attach the NFTs) the work, before putting it up for sale in the market. They’re a lot already - let’s list the most popular: We’ve got Foundation, Opensea, SuperRare, Nifty Gateway, Mintbase, Rarible, and many more.
There’s already even been a rise of other marketplaces that are more eco-friendly by using other cryptocurrency which take less energy to mine. If you haven’t heard, mining (creating) cryptocurrency and verifying the blockchain is hell on electricity, meaning it emits a hell of a lot of greenhouse gases, meaning it’s literally turning the planet hot as hell, meaning mankind is going to be killed off by the looming climate crisis that much faster. Bleak. So marketplaces like KodaDot and Kalamint exist to let you sell and buy crypto art without killing us all faster. Such fast progress with these marketplaces is wild and a good indication of the large investments going into NFTs.
Big names banking on crypto art
There are some heavy hitters now getting into the NFT art market. Christies started this craze when they sold the Beeple - and it was actually their first digital only sale ever. Since then we’ve got Sothesby’s - these guys actually held a three-day auction for NFTs by one artist. Then there’s Phillips that sold their first NFT for $4 million. These auction houses sure do love their Green Bills. And they love that a new type of collector is getting into art with this - the young, digitally savvy, cryptocurrency investor who believes in the future of digital lifestyles. Guys, even heavy hitters outside art are getting into this e.g. Playboy is looking to sell its photography as NFTs.
Coronavirus and how it made everything digital
Personally, I blame Covid-19 for this mad rush. With the lockdowns, everyone and their grandparents had to stay indoors, and digital lifestyle skyrocketed. For the first time, we were seeing online art exhibitions everywhere! From small galleries to large names like WeTransfer and Google Art and Culture. This definitely made us start getting used to interacting with art online, so we aren’t totally shocked (though it’s still shocking) about owning art solely online.
Now let’s bring it home to African art
The way NFTs have decentralized art is actually amazing, and you can see it in the way African art had no restrictions entering the NFT market.
Artists like Osinachi made Nigerians’ eyes tear when he sold his crypto art for about $40,000 on SuperRare. Many more are putting up their works on marketplaces too. We’ve got digital artists like Naka Opoku a.k.a. Afroscope, Prince Ude, and Fama also minting their artworks and turning them into NFTs. These are artists I’ve been following on Instagram for a while and just noticed that they’re now selling NFTs!
But how did they even start?
Nana had already dabbled in cryptocurrency. So with his love for both art and tech, and the draw crypto’s possibilities already had for him, crypto art was naturally a beacon call. When I spoke to him, he was filled with enthusiasm about NFTs and he managed to infect me by the end of our call.
“Oh wow, this (NFT) is empowering and a game changer for artists on the continent who struggle to sell (even traditional work) as it’s not as developed a market as in the West. So this can help leapfrog that challenge. I was very optimistic about it!
Digital art is always seen as the ugly stepson to fine art cause people think the computer does the work for you (even though both types of art take the same amount of work). But NFTs allow people who appreciate digital work to be exposed to your work.”
Other digital artists who shared their thoughts with me were also captivated by the possibility of reaching buyers who love digital art! Plus, even getting the chance to make a name for themselves outside of their immediate environment. Prince Ude shared:
“I was so excited when I came across Beeple's record breaking NFT sales and I decided to enlighten myself about the concept of NFTs.
“I concluded that the NFT space was a platform for artists to be recognized and appreciated in terms of monetary value. A lot of artists work tirelessly on their art pieces in exchange for likes and exposure with the hopes that this exchange would land them paid commissions and the NFT space was able to change the entire game. I was hyped to get into the NFT space because making money from what you love doing has always been my desire. I love making art and the NFT space was the right platform to monetize my art brand as well as get to connect with artists from all over the world.”
Digital artist, Fama had a similar experience - he was also as excited!
“To be honest, I believe we all start thinking about the money. But I am a little bit romantic in the sense that my artwork can be seen in 500 years from now and people will know that I was the creator. This makes me feel very good. Once you are in the NFT world, you also find out that you will be meeting incredible people and you start building beautiful relationships.”
Obviously, these recurring theme of empowerment - both financially and connection-wise (not just to collectors but also to other artists) is a strong draw into crypto art and the NFT community in general.
But as you can expect, everyone is cautious.
Nana spent hours in Clubhouse rooms learning about NFTs before (and during) getting into it. He was kind enough too to set up this page with information about NFTs for people new to the space who have no clue where to start from. Talk about nice, right?!
“This thing is built on the blockchain, with cryptocurrency,” said Nana, “and there’s so much fear and misunderstanding with cryptocurrency. People have ideas that it’s used to launder money. There’s also a lot of technicality - you have to change your dollars to crypto, and get a wallet. Plus, if you make a mistake, there’s no one to report to for help. This is why people are putting resources together to address knowledge gaps and get people comfortable”.
But growing this knowledge is necessary because as I said before, it’s so new and uncomfortable for both artists and collectors. The novelty, though, is not the only challenge for crypto art. Nana also has other concerns.
“Crypto at its core is about putting money in peoples’ hands away from central bodies, so it liberates and gives people ownership of their lives. But it is bitter-sweet as it’s supposed to be liberating, but there are still the old traditional gatekeepers who are setting limitations to equal access.”
These limits are being set by high entry barriers - the most valuable marketplaces/platforms have tough requirements for entry (e.g. needing to be invited), and most don’t prioritize showcasing art from diverse artists and communities, so only those artists who are already doing okay or already famous get a place in the front row.
“The platforms are missing an opportunity to really focus on those who need the exposure the most and put their art at the forefront,” said Nana. “But one of them - Foundation, is being a bit more intentional by putting forward curated shows featuring diverse artists. Still, most of the other platforms have very strict gatekeeping. I’m not the only one saying this so I’m sure we will see changes in the space.”
Prince Ude agrees with this sentiment.
“There's a high level of implicit racial bias in the community. This is alarming and I hope I'm able to get a lot of NFT influencers to come together and speak out.”
A third challenge is cost. If you’ve actually been reading this, you’d have noticed the word ‘mint’, for when you attach the NFT to your digital file. It’s not for free - there’s a ‘gas fee’ (fancy way to say processing fee), attached to this. Nana thinks this is a major challenge.
“When there’s more activity on the blockchain, gas fees can go very high. As an artist that has managed to get Ethereum to mint the artwork, you now have to pay $50-$100 to just upload when there’s no guarantee that you’ll make a sale. But glad to say that some organizations sometimes support artists of color and artists who are new to crypto art.”
A fourth challenge is the murky waters that collectors are currently facing. “People collect art as a form of investment” says Nana. “There are tons and tons of artists. If there’s no one guiding you through artists to look at, you might stay away and collect your normal traditional art as there’s more information and ecosystems around it. But now it’s so new that collectors don’t know where to start (even if they’re interested). There are concerned that they will put in money and the art won’t appreciate.”
Prince and Fama bring a scarier perspective to this problem.
“I’m not that much of a collector,” Prince shared, “but if I was, my greatest fear would be supporting fake artists or quick cash grab projects. There are a lot of fake artists now in the NFT space - people stealing other artists' work and people paying others to create art for the purpose of selling on the NFT platforms”.
Also, Fama even has a friend he’s worrying about, who’s sadly in this situation.
Stolen art isn’t unique to NFTs by any means, but it does add an additional thing to worry about when entering this new space.
Are these all the concerns? Unfortunately not.
If you’re like Nana, myself, and a growing number of young consumers, you’d also be worried about the environmental concerns cryptocurrency, and as such, crypto art, presents. As mentioned earlier when I was trying to explain this thing, validating cryptocurrency transactions is bad for the planet because it takes up so much energy - Bitcoin alone would rank the 32nd highest nation in the world by energy consumption! Crypto art currently (mostly) uses Ethereum, which uses as much energy as Bitcoin. The more we mint, the worse it gets. Many people are turned off by this - artists and collectors alike. There’s hope though - a new method of validating transactions using a lot less energy (by up to 99%!) is coming up, and smart people are doing more research into innovations in this space - lower energy crypto art marketplaces I mentioned above are also starting to launch.
Are we finally done with these challenges? No.
We can’t ignore that even though technology gives artists a chance to break barriers, it also acts as one, especially for artists in Africa. This is a space that only digitally-savvy artists can venture into. And they’d need to be equipped with not just mobile phones, but actual computers and expensive data. This is a major barrier that’s largely unique to Africans.
Despite many challenges, the future holds endless possibilities
Even though there are so many challenges and concerns, don’t be overwhelmed cause everyone is still hopeful!
Nana even envisions a world where crypto art, and NFTs in their entirety, will be part of our increasingly immersive digital lives. “The world is becoming increasingly digital and people will start living more through their digital avatars. NFTs are supporting a world where you can buy art and display in your own digital space - we could be having a virtual reality conversation in a digital world - two of us with our avatars and the artwork displayed in our digital living room.”
“NFT is bigger than just art too”, he continues, “I can’t even imagine the innovation this thing will evolve into - we’re already seeing NFTs as fashion items where social media influencers have a chance to purchase an NFT and transpose it onto their picture for Instagram, without having to buy the item and wear it only once!”.
“I’m seeing incredible things everyday in this space - I just hope it empowers all creatives - especially the people who need it the most, so that we can see a shift”
But Nana knows it won’t happen on its own - people need to read techy articles and even educate their own communities. And the nerds need to keep working on reducing crypto’s environmental footprint so that buying and selling crypto art isn’t so bad to the planet.
Overall, the positivity and optimism these three artists have for how NFTs can help grow their art careers and brand is unmistakable. And I’m right up there with them!
Whew! I’m done, and well done for staying with me too. The search to understanding crypto art has been an interesting journey of discovery - another true interjection between art and technology, and I tell you, it’s going unimaginable places. How far and fast remains to be seen, but the optimism is clear.
Let me know what you think though - is crypto art here to stay? Can you be convinced to buy one? What are your biggest fears about it, but what are your biggest dreams too?
Words by Adiya | Original quotes from these three amazing crypto artists - remember to check out their NFTs here: Afroscope, Fama, and Prince Ude