Ok, after Beeples ~$3.5M drop, here’s some thoughts on Investing. How to invest in and valuate Art NFTs/CryptoArt? Is it the Art itself, the Instagram followers, the FOMO..or? Let’s explore.
I know we’re all looking for a logical explanation. A formula that works. as we move digital I notice a lot is based on what someone is willing to pay for it. A bit of logic, a bit of emotion, lots of fomo. So how do we price it all into making an investment decision?
There’s multiple reasons why people buy CryptoArt,
– Some buy coz they’re rich af and like what they see
– Some to kickstart the industry
– Some invest for price gain
– Some for bragging rights
– Some all of the above
We’ll go through some data later.
Many people believe this space is going to 1,000x. Not just in terms of price – but people activity/growth. So those with big money are acquiring art based on what they see and feel will be a part of Crypto Art history. Pivotal moments like the Beeple drop is an example.
There’s comparatively little secondary market activity overall, but there’s definitely some data that indicates growth. For example @muratpak who now sells for 20-60 ETH a pieces. If you look at the earlier sales on Superrare they were 2-6 ETH.
@josiebellini who used to sell pieces for 0.3 ETH, Now sells for around 3-10 ETH, (These aren’t even 1/1s!) Not only is the art loved by many, she runs podcasts, streams, runs events, in multiple virtual worlds, etc. So a lot of collectors love to own some of her Art.
Any artists have their own collector base, 100’s of them have had their value appreciate. Small OR Big. I like to keep an eye on recent sales so I made http://cryptoartpulse.com Still to add Nifty Gateway, Rarible, etc. But if I see Artists sell regularly I’ll investigate.
Many successful artists not only make great art but, – Continued to grow their brands/social media/awareness, – Either have been here for a while OR have massive social followings, – Price and Mint their Art carefully. Basically grow & learn with the industry.
So if we’re talking ‘investing’. It would make sense to invest in those that do the above right? Grow their socials, perfect their art, continue to promote themselves, likeable personality, etc. As they grow, your Art investments grow. Simple.
If we add the hype of Twitter, ‘Art drops’, Big money/crypto we’re probably going to continue seeing insane prices. So many invest in artists they think will appeal to larger collectors eventually. Iconic, Big followers, etc. That’s where you usually see big money go.
But there is NO reason any artist can’t get there. Like I mentioned before, Beeple made art for 13 years DAILY before this. Not just made, but promoted and grew his brand. Grow your communication/reach and you can do anything.
We’re all still learning. I can only share what I know and have observed but since we’re at the start, we’re all figuring it out as we go. Pricing, Art, Technology, Crypto, Hype, there’s a TON of factors at play here. And data will slowly paint a clearer picture.
Although the CryptoArt space has been crushing it lately. there’s plenty risks. Low liquidity – hard to sell when you want. When ETH/BTC moons, this space slows down. New and unknown. Make sure you explore the above first.
Check out CryptoArtPulse.com and Follow us on Twitter.