In March 2021, Mike Winkelmann, better known as the digital artist Beeple, created a stir in the market by selling an NFT of his artwork for $69 million through an auction at Christie’s. The artwork that experienced this massive rise in value is titled ‘Winkelmann’s Everydays: The First 5000 Days’ and was first listed at $100 at Christie’s. With a significant increase in the number of buyers and sellers in the market, the total sales of NFTs reached $17.7 billion in 2021 alone.
Anyone can have an image of Beeple’s art, but only the person who owns the NFT owns that original art. NFTs or non-fungible tokens are unique digital assets with their ownership recorded on the blockchain. Not just art, but anything can be sold as an NFT, including memes, music, drawings, gifs, and even tweets. With the immersion of NFTs in many upcoming techs such as metaverse, the demand for them is on the rise.
With multiple options for creating NFTs in the market, almost anyone can create their own NFT in a few simple steps. However, with the flood of NFTs in the industry, the NFT industry is a bit more complex than it seems.
So, what are the things that one should consider while creating and selling NFTs?
- Many platforms mint and sell NFTs. Choose the best one!
Thorough research will present the multiple platforms where NFTs can be listed. Listing on multiple platforms increases the chances of selling them.
- To mint an NFT, one should be prepared to pay the gas fees.
Like vendors have to pay to see their items on websites, artists should also be prepared to pay gas fees to create NFTs whenever a transaction takes place. A few blockchains exist for this purpose, Ethereum being one of the most expensive ones since it uses proof of work instead of proof of stake. Upcoming artists should consider these aspects and research and gather appropriate financial means to turn their work into NFTs.
- Art that catches the eye and touches the heart is the art that sells.
After creating unique art, it is also essential to make it stand out in the sea of NFTs. Creators should focus on building their online presence and client base to start their journey on the right foot and capture the potential client’s attention. Using various social media platforms such as Instagram, Facebook, and Twitter to promote an NFT can do wonders to sell the art.
People’s attention can also be gained by weaving a backstory about one’s art. Its origin, significance, and creative process can connect people to the art and increase its online presence.
- Make sure to know the risks.
NFTs cannot be duplicated or manipulated due to blockchain technology. However, there can be infringement. People don’t require the rights of anything to own it in the form of NFT. This makes the market open to fraud as anyone can collect royalties of someone else’s art by stealing it and making an NFT.
There is also a risk of speculation affecting the average market prices and factoring in Ethereum price changes that affect the value is essential.
- Selling the original physical art and its NFT separately is an option.
There is no compulsion to share the physical art along with its NFT version. Both versions cater to different kinds of buyers. While one buyer might prefer the physical form of art and have the space to hang or keep it in their house, another buyer can focus only on the art’s ownership rather than owning it physically and might prefer the digital version. Selling the two arts separately might generate more profits for the artist.
To Wrap up
NFTs have brought in a wave of decentralisation, making it easier for artists from various industries to create and sell their art in this new ecosystem.
With many artists coming up with an action plan to expand their art horizon into NFTs, the competition is increasing, and now is an excellent time to take the first step and start creating an NFT.
At the same time, the artists must keep in mind the risks and challenges that come with venturing into this new domain. Having the right mindset and doing thorough research can assist them in starting off their journey in this industry.
