🌤 The Bright Side of this Crypto Crash for NFT Art
Some thoughts about the current market situation...
Today’s newsletter edition is sponsored by Rove.
Rove offers “virtual world” such as spaces, architecture, artifacts, and the ability to set your “digital economy” through the financialization of NFTs and governance. Join a growing list of NFT projects and organizations like AkiStory, Warena, OTI Group, etc., to build a metaverse for your community.
Many actors and worldwide events are driving this crypto crash. Inflation, the traditional stock market, and goods prices are trending in the wrong direction (Luna and other crypto scandals aren’t helping). These events affect crypto and NFTs like all industries; there is just no scaping.
My goal today is to share positive views and some ideas to calm down during these rough times.
Art has an intrinsic value that goes beyond crypto and NFTs
Art has existed for over 45k years… And it has been one of the most prosperous asset classes in recent times. This crypto crash isn’t changing that.
“Since 1985 contemporary art has been the best bet for investors of the asset class, returning an average of 7.5% per year, Citi said in a report using data from Masterworks.io. Impressionist art averaged 5.0%, while the art market as a whole returned 5.3% annually.”
Gen-Art NFTs are a new form of art made possible by blockchain technology
Last year I wrote 5 Reasons why Gen-Art NFTs are something special. There is something very innovative about this whole environment, and the masses are starting to notice. It begins with art lovers and expands to tech enthusiasts. The concept is just too neat.
The traditional art world is noticing and trying to catch up. This crypto crash isn’t changing any of that.
Blockchain and NFTs are technically sound, robust, and proven at a massive scale
Also, after working on The Blind Gallery, I can attest from the field that blockchain technology is excellent and stable. It opens the door for innovation and creativity for our generation and many to come. This crypto crash isn’t changing that.
NFTs and crypto won’t make you rich
Many say only 1% to 5% of NFTs will hold future value. Slowly, collectors and investors are noticing how there are two ways, A) collecting what you like and B) doing hardcore research if you want serious profits.
NFTs and crypto aren’t a way to make easy and quick cash anymore. This crypto crash makes that clearer.
Invest in yourself and your reputation
It doesn’t matter if you are an artist, a collector, or a builder; it always pays off to add value. The economy could decline, but your reputation and community will be around.
When I joined the space around one year ago, there were already established figures - companies, dApps, artists, collectors, builders, etc., who had entered the space years before. They went through hard times, and their perseverance put them in a great spot in 2021.
This story can repeat itself. The crypto crash will reward those that continue to add value.
Learnings from the future
Take profits. It doesn’t matter what role you play - artist, collector, investor, builder. Don’t take things for granted. This is probably the riskiest industry out there, and many things aren’t under your control. Play it safe. Plan ahead.
It has been quite challenging for me to wear so many hats. Writing, staying up to date with the gen-art movement and market, building projects with the team (Blind Gallery + some exciting stuff still in the works 👀), and navigating crypto volatility. It is just too much. Crypto-coins volatility wears you down.
I am sure many collectors, builders, and artists could face the same problem. The solution could be to more often cash out your coins into fiat or stables. Of course, you still want liquidity to purchase interesting projects and NFTs, so it is all about finding the sweet spot.
Artists might have a more straightforward approach. Just cash all your sales immediately… Don’t play the volatility game.
Stay safe out there and think long term…
Until next time,