NFTs: Exclusive Digital Masterpieces or Simply Screenshotable
A few years ago, NFTs took the world by storm. NFTs, known as non-fungible tokens, are unique digital assets stored on a blockchain, such as Ethereum, which certify the ownership and authenticity of items. They grew immensely popular in 2021, becoming an immediate staple of a culture that is constantly growing more digital.In particular, NFT’s digital art was all the rage, with the most expensive digital art being sold up to $91.8 million dollars. However, how could these pieces cost so much? After all, these art pieces are, well, digital, meaning that with a click of a few buttons, you too could also “own” this art via a snapshot or screenshot. Despite the ease in replicability of this type of art, the reason for this rage and expensive price is very human; exclusivity. These NFT contain unique identifiers that are stored on a ledger, allowing for the buyer to essentially own “the original”. While anyone could replicate NFT art, they also can’t exactly have the privilege of saying they are the one true owner, as any other screenshotter could say the same thing. However, with an NFT, someone does truly own a piece of digital art, even if this is still replicable. But, despite the initial hype and rage, NFTs have seemingly died, just as fast as they rose. Now, NFTs would rarely sell for a few thousand, let alone near a hundred million. With this in mind, was the hype truly worth it? Was NFT art truly exclusive digital masterpieces or simply, overpriced and screenshotable art pieces?
In 2014, Artist Kevin McCoy and technologist Anil Dash created “Quantum” on the Namecoin blockchain, marking the first time digital art was “tokenized” to prove ownership. This laid the foundation for the eventual NFT movement.
In 2015, Ethereum was launched, allowing for the art to live on a platform that was relatively easy to use. Marketplaces like SuperRare and KnownOrigin were also launched, helping curate digital artists.
Years after the creation of “Quantum”, the first true NFT piece to sell for a jarring amount of money was sold. The art piece was Beeple’s “Everyday: The First 5000 Days”. Sold in March 2021 at Christie’s Auction House, the piece was sold for an insanely high $69.3 million dollars. The selling of this piece sparked the craze for NFT art, providing both legitimacy and validation of exclusive digital art.
Arguably the most recognizable of the NFT art was from the collection of the Bored Ape Yacht Club, which depicts a monkey in various human-like clothing. This helped shift the focus to NFTs becoming a form of “identity art”, and the ownership of said art allowed you to become a member of an exclusive club. In fact, their unique designs were used as profile pictures, demonstrating how the art became truly ingrained with one’s identity. In 2022, during the peak times of NFT art, a piece was selling for over $430,000.
However, despite the early hype over NFTs, the fall came as fast as the rise. Following the bankruptcy of FTX in 2022, liquidity was drained from the entire crypto market. Since most NFTs were priced at Ethereum, the value plummeted. People also quickly became fatigued over the idea of buying such expensive digital art that people could simply screenshot and duplicate, which helped reduce the value significantly. The Bored Ape Yacht Club, one of the most expensive and sought-after NFTs, had their value plummet by 90%.
Despite their rapid fall, there is no denying the cultural impact of NFTs. The hype around them was unmatched, with almost the entire world talking about them. Their rise was unprecedented, creating one of the most highly-priced markets ever, in a very short amount of time. Ultimately, they are the absolute symbol of a new digital age, where more and more of our life, including art, is online.