Making money with NFT art

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Journal Title
Journal ISSN
Volume Title
School of Arts, Design and Architecture | Bachelor's thesis
Date
2023
Department
Major/Subject
Major of Design
Mcode
Degree programme
Bachelor's Programme in Design
Language
en
Pages
38 + 29
Series
Abstract
The current digitalization trend influences the sphere of design and art. With the advent of new categories in these areas, future generations and creatives need to understand the peculiarities of work within new systems and consider them in their projects. One of the new emerging phenomenon within the art market is the NFT. NFTs are non-fungible tokens, digitally identifiable assets representing art, digital collectables, or variations of in-game items. The value of the NFT market lies in the unique automatic code to any items uploaded to its system. This unique feature has rapidly developed the NFT market since 2017. The NFT is known for representing an excellent opportunity for artists to promote their work more openly than the traditional art market. For designers, NFT is an opportunity to get familiarized with crypto-art and Web3 in one of its displays. Developing the art within these new systems will allow creators to take a more progressive approach to their projects and create interdisciplinary relevant works in physical and digital formats. The NFT, as a system of an art market, currently offers the possibility of freer promotion and faster development of artists compared to the traditional art market, where many established authorities directly affect creative realization. In the context of existing research, NFT has been extensively analyzed in terms of describing the operation of the blockchain system, the economic impact on the market, and the value of NFT for the average user and viewer. However, research on the NFT as a new development and promotion tool for artists and designers still needs to be completed. This thesis complements the overall picture of the NFT as a new phenomenon for the art sphere, considering and studying how traditional art experts and NFT artists think about the monetary value of NFT. The study of the drivers of the monetary valuation of NFT artworks will allow artists and art professionals to understand what affects the final price of an artwork in the form of NFT. The literature background is corresponded with research on the new philosophies of crypto art and the connection of it with traditional market. The methodology of this thesis is based on the interviews of NFT experts and traditional art-market experts. This division into groups was created for a more accurate study of the NFT as a new type of art market. The NFT experts shared their experiences and discussed the most critical aspects influencing the NFT art price. Simultaneously, traditional art experts also expressed their opinion on the digitalization of the art market. The data analysis of this research is thematic, considering the particular importance of the personal experience of experts in their knowledge and activities. Subsequent analysis was continued with the usage of figures and tree charts. Ultimately, nine monetary value drivers were formed, which in combination have the most significant impact on the final worth of NFT artwork. Their primary connections between the value drivers were also presented in the form of a model. This research can open the world of NFT for artists and designers from a new and more structured perspective, providing them with aspects to rely on during the process of creating NFT art for a more successful tangible sales outcome. For other readers, this research may inspire them to pay attention to the essential features of the NFT, which influence its price.
Description
Supervisor
Person, Oscar
Thesis advisor
Jeong, Rebecca
Keywords
NFT, digitalization, art market, monetary value, value, digital art
Other note
Citation