What to look for when deciding to buy your first NFT/ Crypto Artwork. A formula for success for Investors and NFT Artists alike
Where I attempt to answer how you choose the right NFTs to buy. And how NFT artists can position themselves for success and early sales from investors like myself.
What do you look for when buying a NFT artwork?
I was posed this question by up and coming NFT artist Zushi @byZushi (an awesome name such as Zushi is a good start by the way) - I had been asked a form of this same question by a number of early investors and artists…
So here goes my attempt at answering it.
I am going to assume you’ve done a little ground work and understand NFTs and crypto art. If not, Essentially there now exists a way for digital goods and assets to be bought/sold/traded and invested in. NFTs (non fungible tokens) allow for digital authentication of goods such as art, collectors items, music, videos etc. Digital (and traditional) artists/creators/creatives can now release limited collections or exclusive drops of their works into the online world. Collectors/enthusiasts/investors can now buy, hold and sell these NFTs on marketplaces - These creatives works/pieces can be authenticated as real and genuine using blockchain technology - yea the same weird and wonderful technology that ensures your Bitcoin is your bitcoin and not someone elses. Some of this artwork can relate to a physical equivalent (e.g. a canvas painting) but most NFTs are entirely digital works.
As an investor in NFTs, this is my formula for choosing NFTs to invest into.
NFT Formula = (The Artist) x (Their Art) / (The Market)
Whereby,
The Artist = (Artist Story x their brand x their community x their integrity )
Their Art = (Artworks ability to elicit emotive response and relation to human experience x relation of artwork to the zeitgeist of the period in which the artwork was created x real or perceived scarcity of their works)
The market = (Artwork scarcity, distribution, platform alignment, general market conditions, indicators of momentum/historical precedence.
Zushi NFT Formula Case Study
In the best interest of making this post valuable and the formula to actually relate to the real world of NFTs - I will use Zushi as an active case study to put the formula above into action.
https://foundation.app/byzushi/zushi-by-zushi-630
Artist - (story, brand, community, integrity )
Story - Trying to make people feel something through art.
I personally like this mission. It encapsulates a basic but important goal of art.
Brand - Aesthetic brand, active website and instagram/twitter. Variety of photography, video and live motion design projects .
Community - zushi is active on Instagram, Twitter and via DM etc. A few thousand followers on each.
He is engaging with the NFT community as an early investor in @dhof NFT artworks through Foundation. Zushi is actively responding in DMs and seems interested in helping investors navigate NFTs.
All good signs IMO.
Integrity - Zushi seems to have high artistic integrity and a positive outlook in NFTs and commitment to the art form.
————————————
Their Art = (Artworks ability to elicit emotive response and relation to human experience x relation of artwork to the zeitgeist of the period in which the artwork was created x real or perceived scarcity of their works)
https://foundation.app/byzushi/zushi-by-zushi-630
Relative to the artworks ability to elicit emotive response - Personally a high emotive response from me. Skulls have a strong history in art - related to death, immortality, Heavily used in Mexican culture. They can symbolise rebirth, change and these motifs can relate to the digital nature of NFT. A changing of the guard perhaps.
IMO - emotive response and human experience of the art is VERY subjective. A lot can be said here for your personal artistic tastes.
Relative to artworks connection to the human experience - Skulls, death and the dramatic music of the NFT really hits me. The visual production of the artwork is engaging and thrilling. It also looks amazing on mobile and within the feed of twitter/instagram - this is really key for discoverability.
Relation to the Zeitgeist of the period - Zeitgeist means the feeling and climate of of a particular time. The crypto art renaissance and the digital boom of artwork and music strongly relates to this particular piece.
Perceived scarcity of works - This is his first NFT - A good thing generally as an artist moves into the NFT/crypto and digital medium. There does not seem to be a large risk of the artist flooding the market with new works and I think this is generally a good thing.
Market- (Artwork scarcity, distribution, platform alignment, general market conditions, indicators of momentum/historical precedence)
Artwork scarcity - First NFT artwork by this artist. This is a good thing IMO
Distribution- Artist has inked a deal with Foundation.App - This is an emerging platform with a strong growing community. Zushi mentioned that Foundation is working towards appealing to mainstream art buyers and I tend to agree. They have a great UI and design and make NFTs more accessible.
Platform Alignment - As above - Zushi seems to be focused on a partnership with Foundation and as an early artist on the platform this should bode well moving forward.
General market conditions - NFTs are closely tied to the crypto market and as such can be volatile. This period is explosive for NFTs with some large sale prices and volumes. This could be a risk early as NFTs could be over priced but crypto, especially Bitcoin is looking very strong right now.
Indicators of momentum/historical precedence - This relates to previous sales volume and price, bids and any data on the artists previous works. As a new artist there is not much to go by but Zushi does have an existing bid on their new artwork which is a good indicator. Currently this is the highest risk part of the formula.
Summary
Attempting to create a formula for buying NFT artwork is inherently difficult and will not be anywhere close to an exact science. Art is so subjective and can be influenced in many ways. The #cryptoartrenaissance is upon us and it’s an exciting period for artists and investors. Time will tell how the NFT space plays out.
Please note:
I am more than open to constructive criticism and suggestions on improving or changing the formula and would encourage this via twitter or feel free to contact me through any of the mediums available.
Thanks
Eddie Crypto Art Dealer*
This post is ABSOLUTELY Golden.
As a new nft artist, this info is exactly what I've been looking for.