NFTs provide “Scarcity” as an Attribute for Sale.
Let’s wake up and realize that expensive original art is valued not for its beauty but foremost for its scarcity and appeal. This makes it a perfect hedge against inflation. Cash on the other hand is not scarce and can be increased infinitely. The relatively high price of art reflects a degradation of value in cash vis a vis fine art due to this historical inflation; More so than about the increase in any inherent appeal for these artifacts. Thus, art as a hedging asset is the real story regarding NFTs. Its technology has made possible the creation of authentic scarcity on demand.
What is a NFT?
NFT is the acronym for non-fungible token.
And what is a token? It is an agreed object to represent specified units of subjective value. Each of the units must be reliably calibrated so that the only variable is the number of units that define the object. This is a ticklish calculation. For example, If my piano is assessed to be represented by 1,000 units and your piano is assessed at 1,500 units we must be comparing apples with apples in terms of units.
Secondly, each token must be indistinguishable from any other token in order for the exchange to be transparent. This interchangeability is called fungibility. For instance, a dollar bill is a token. It should be interchangeable with any other dollar bill. This interchangeability is what makes it a fungible token.
Another type of token is a NON-fungible token; an nft. Its purpose is the opposite of the foregoing. Its value lies in its uniqueness. It is verifiably one of a kind. The certificate of ownership for the Mona Lisa, for example, is analogous to an nft. There is only one authentic Mona Lisa. The certificate of title proves its authenticity.
However, ordinary certificates can be forged. Until now. Modern Blockchain computer technology makes it possible to render the certificate inviolable. Therefore, anyone with an NFT of the Mona Lisa could rest assured that he owned the real deal.
And since increasing numbers of buyers would want that specific nft, its price would keep going up due to the economic principle of supply and demand.
With this illustration we see that the entire purpose of NFTs is the sale of uniqueness.
Therefore, a nft is primarily an investment. It is simply a provably unique title to something. Therein lies its value. This title is immutable because it is written in blockchain computer code. Buying an nft is like buying title to your house. The value of the title to the house is based on someone’s interest in the house. That interest could be speculative or aesthetic. Same with any NFT. Who wants a poorly illustrated image of an ape? Only a wise investor that understands that it’s not about aesthetics but about uniqueness. No two such images are identical. That’s the object lesson.
XERIES (XER). The Art Patron Token
Would you like to know more about a specific aspect of the Xeries token or the XDALE project?
XDALE has announced the public sale of its first batch of Art Patronage NFTs. These ERC721 tokens, inspired by XDALE founder Doug Crosdale, will help the company set up a new era for Art Patronage projects with the help of the crypto community.
The new PoC concept at work
Project number two is an APP (Art Patronage Project) from an undisclosed Developer that will provide 60% of its production needed for a physical real estate art space. It will also provide wall space, studio space, and exhibition space in a commercial shopping mall dedicated to interior designs, sculptures, etc. That project has expected rewards of 6650.000 XER. The NFT price for this venture is 195 USDC and requires locking 380 XER tokens per mint.
XDALE founder Doug Crosdale, said: “XDALE is focused and working hard completing the objectives and vision put in place when we founded it. From today forward anyone will be able to work with the art community and directly support Art Patronage projects. Improving Art Patronage access, their structures, drastically enhancing access to masterpieces and the impact on the world of art and design. Most importantly, everything will be done through a completely decentralized and transparent system thanks to the blockchain.”
XDALE Managing Director Paolo Pastore adds: “Using NFTs as proof of contribution to Art Patronage projects allows us to create a new market, keeping those contributions liquid if there is demand for them. This was not possible before: funds deposited would have been locked in the whole project duration with no chance of getting them back before the end. Now, by selling an NFT, contributors can easily move out from their position”
About the XER token
Contributing to Art Patronage Projects is reserved to XER token holders willing to lock their tokens for the whole duration of the project. Locked tokens generate rewards coming from the 1% of platform savings and generated by the approved Art Patronage Projects. Rewards are proportional to the number of tokens locked.
Every XDALE NFT is a proof of contribution NFT with utilities attached, providing holders with rewards that come from the increased value of artwork that the patronage got from the contributions. Moreover, the XER NFT lets holders participate in the private sale phase for new projects as published on the platform. NFT holders can reserve an amount of NFTs equal to the number of XER that they hold. Furthermore , they gain discounts on XER usage, including staking/using fewer XERs to mint future NFTs.
The NFTs issued by XDALE draw upon elements from co-founder Doug Crosdale’s inspiration. All artworks will be revealed once the actual project is implemented and coincides with the launching of NFT staking contract on the network. Both projects will feature at least a unique artwork and several rare/super rare creations.
After the company implements all requested changes, a staking contract will go live on the blockchain. That contract yields XER tokens (each XER token represents 1 USDC of art-value increase) equal to the rewards generated by auction bids on Open Sea and Christie’s Auction Houses. Via our decentralized swap exchange, DALEx, users can convert XER to USDC through a different on-chain contract.
There is a minimum APR of 8% for up to 40% after five years. As a result, a minimum of 1.4 million XER tokens are distributed to NFT stakeholders if the XER NFT mint sells out.
XDALE commits the full amount required to kickstart the implementation and secure the project. Unsold NFTs will be removed from the market and burned. Rewards tied to XDALE’s capital will be kept by XDALE and allocated to other Art Patronage projects.
Beeple
For example, the artist Beeple’s work has had a significant impact on the digital art and NFT space. Here are a few notable projects and achievements:
Everydays: The First 5000 Days
- This piece is a collage of Beeple’s first 5,000 consecutive daily artworks. It was sold as an NFT for $69 million at Christie’s auction house in March 2021, marking a historic moment for digital art and NFTs.
CROSSROADS
- Another famous NFT by Beeple, CROSSROADS, is a dynamic piece that changes based on the outcome of the 2020 U.S. Presidential election. It sold for $6.6 million on the secondary market, making it one of the highest-selling digital artworks at the time.
Human One
- Beeple created a hybrid physical and digital sculpture titled “Human One.” It’s a continuously evolving artwork displayed on four screens, presenting a person walking through different landscapes. The piece was auctioned at Christie’s for nearly $29 million.
Political and Social Commentary
- Many of Beeple’s daily artworks feature satirical and thought-provoking commentary on current events, politics, and popular culture. His distinctive style often includes futuristic and dystopian elements.
Collaborations and Influence
- Beeple has collaborated with major brands and musicians, including Louis Vuitton, Nike, and Katy Perry, creating visuals and animations for various projects.
Beeple’s work continues to push the boundaries of digital art and inspire a new generation of artists in the NFT space. His success has brought significant attention to the potential of digital ownership and blockchain technology in the art world.
Bansky
There are Banksy NFTs A! While Banksy himself hasn’t directly created any NFTs, his artworks have been turned into NFTs by others A. For example, in March 2021, a blockchain company called Injective Protocol bought a Banksy artwork titled “Morons (White)” and burned the original piece, replacing it with a digital NFT version.
Additionally, there have been innovative projects involving Banksy’s art and NFTs, such as Particle, which has loaned a Banksy artwork to global museums using fractionalized NFTs , This allows art enthusiasts to own fractional shares of high-value artworks through blockchain-based tokens.
Would you like to know more about any specific Banksy NFT project or how NFTs are impacting the art world?
Basquiat.
Jean-Michel Basquiat did not create NFTs himself, as he passed away in 1988, long before the advent of blockchain technology and NFTs. However, there was a controversial attempt to auction an NFT of his artwork, “Free Comb with Pagoda” (1986), which led to significant backlash A. The Basquiat estate intervened and the NFT was pulled from sale because the seller did not have the rights to the artwork A.
The idea of creating NFTs of Basquiat’s work has raised many questions about intellectual property rights and the ethics of digitizing and potentially destroying original artworks B.
Basquiat
”Irony of a negro policeman, 1981”
Acrylic and crayon on wood, 183x122cm
AMA Collection
Haring NFTs
The Keith Haring Foundation has auctioned off a collection of five unique digital drawings created by Haring on an Amiga computer in the mid-1980s A. These works were previously accessible only via floppy disks but have now been minted as NFTs (non-fungible tokens) and sold at Christie’s for $1,587,600 A.
The proceeds from this sale support the charitable initiatives of the Keith Haring Foundation A. It’s a fascinating blend of vintage digital art and contemporary technology.
Haring’s art is so vibrant and full of energy—it’s no wonder that even his digital works have found a new life as NFTs. The world of NFTs is incredibly dynamic and offers a unique way to own and appreciate art.
Are you interested in collecting NFTs, or are you just curious about how artists like Keith Haring are making their mark in the digital space?
Others
- Bored Ape Yacht Club. Bored Ape Yacht Club (BAYC) is the #1 NFT to buy right now. …
- Pudgy Penguins. …
- Sorare. …
- Solana Monkey Business. …
- NodeMonkes. …
- Crypto Punks. …
- Azuki.