What it takes to be a player in the NFT world
Artwork collides with technology
NFTs, or non-fungible tokens, are completely unique digital assets (usually art of some sort), which makes them valuable and collectible by their very nature. NFTs are often simply just pictures, but they can also be mixed media (like music, videos, animated GIFs, and more). Even though screengrabs, recordings, or copies of the art could be created, the original artwork is meticulously recorded as an NFT for legitimacy. Similar to how people might have a Picasso poster in their home, the original can only be owned by one buyer at a time. When NFTs are purchased, a record of ownership is submitted on a digital record (or blockchain). Much like a deed to a home verifies a person’s ownership in a county office, blockchain acts as the official file on record. However, the NFT is arguably more secure, as it can be verified across the cloud from thousands of computers, and it isn’t living in one lonely filing cabinet on a piece of paper, inside the county records office.
What gives an NFT its value?
Beyond the security and verifiability of the NFT format as described above, there are several other factors that play into the value of NFTs.
1. Collectibility
Like a fine wine, NFT art can mature and manifest a vintage quality that appreciates over time.
2. Scarcity
How rare is the artist’s piece? Supply and demand plays into the value of NFTs. NFTs can be released as an edition of only one, or could be sold in a batch of five, ten or hundreds available for purchase. As you might imagine, a one of a kind NFT is typically most valuable. Be sure your editions always sell out, you don’t want to have NFTs waiting to be purchased as this makes your art seem less desirable.
3. Credibility
Obscure artists have far less value than the well known ones. An established artist who has notoriety or fame will inevitably be more sought after. This works in the physical world as you transition into NFTs. An NFT issued by a notable person will be worth more, generally, than your cousin’s first NFT offering.
4. Combine with physical products or experiences
Make your NFTs bridge the digital and physical realms! If you are an artist, offer a physical painting when someone buys your NFT. As a musician, offer a backstage meet and greet or a custom performance on Zoom to go with your NFT purchase. Be creative – the NFT world is brand new, so how can you gamify the sale and move into new artistic territory? Marcel Duchamp offered ‘ready mades,’ Christo covers canyons in fabric – what new approach can you bring to art and to NFTs?
5. Comparison
Now that an actual mainstream market exists for NFT’s, users can compare and contrast similar works and see records of transactions to get a sense of the value. In this fast moving world, there is always the latest trend. Much like ‘going viral’ in social media, what artistic movements are going on now that you can riff on to up it to the next level?
Put these factors together to build up the value
of your NFT offering.
For instance, when you release a set of NFTs, some could be sold in an ‘open edition’ to many people, allowing many originals to be on the market. Then, some or one of the set could be issued as only one or a limited number. Only when someone has the full set will they get the bonus physical ‘extra’ that comes with owning all of the NFTs. This will help catch the eye of collectors and encourage trading of the NFTs on the secondary market to allow people to own them all, albeit at different times.
Making an Impact
While it feels like the world of NFTs is currently experiencing a gold rush, it can still be difficult to know how to invest in NFTs and make an artistic impact. You may be an artist in a specific medium that doesn’t translate easily to digital. So, partner with another artist to take your combined artwork to the NFT world. Some tips to make your NFT successful:
1.) The requirements can seem daunting, so it can be critical to have a creative team on-hand to assist in telling the right story, conceptualize visuals, build tasteful animations, and produce complementary media. It’s necessary to have the right approach to generate the compelling files and follow legal requirements.
2) Looking at the market and establishing a realistic price is also a key component. Getting your NFT listed on the most popular digital art market is imperative so the NFT is not dead on arrival.
3) Try centering the release of your NFT around a special event, promotion, product, or charity, in order to accentuate the release and build excitement.
4) Finally, having a third party consultant can help artists focus on creativity and collaboration, rather than getting bogged down by the technicalities of file structure, protocols, and marketplace requirements. Consultants can also help build art agent partnerships, which are useful for promotions and getting the word out to the right audience.
Macy Gray Case Study:
People Productions recently collaborated with acclaimed Grammy award-winning artist Macy Gray through the process of building her first NFT that provided financial support for the people of Ukraine. This inspiring NFT titled “All-Star Spangled Banner” combines a one-of-a-kind, soulful version of Gray’s performance of the national anthem with a heartfelt American flag artwork that represents the multiracial diversity of the United States.
Fresh off her performance of the national anthem at the 71st NBA All-Star Game in February 2022, Macy married the lyrics of “The Star-Spangled Banner” with a flag that features stars in the many shades of all of our skin.
“The lyrics of the national anthem have represented hope and resilience for all humankind since it was written in 1814,” Gray states, “and in this challenging time for Ukraine, my belief and message is that America, with all of our differences and diversity, stands in unity with the people of Ukraine.”
Don Poe, CEO of People Productions, sympathized, “I was an exchange student in the USSR in 1990 and traveled to Russia and Belarus. I listened to Soviet teens tell me how rough things were for them under communism. Now, we are here to stand up to the leaders of Russia again.”
People Productions provided many 3D animation options for the story Gray was telling in her music. Working with an artistic consultant, and digital marketplace Makers Place, the team navigated the auction through to its completion, providing a magnificent work of art that compliments Macy’s music, and accomplishing the goal of raising money and awareness for the people of Ukraine through the Red Cross.
At People Productions, storytelling is at the core of every project. From marketing to the new world of NFT art, your message is core to our work. Collaboration and open dialog is the first step in providing a strategy and direction for your project.
Thanks for learning about NFTs!
Call Don Poe at 303-449-6086 or email don.poe@peopleproductions.com, with any questions you may have about NFT campaigns.
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