March’Record’ of NFT work transaction combining art work with blockchain technology
MZ generation, which has an advantage in digital currency access, is expected to enter the art market
Experts suggest “digital transaction research aimed at the MZ generation, should participate in the art world”
[서울=뉴스핌] Reporter Lee Hyun-kyung = As Pica Project and Seoul Auction Blue, which have a large number of young collectors, have announced that they will enter the NFT (non-replaceable token) art market, there is high interest in the digital assetization of domestic art works. It is noteworthy whether the act of trading ownership of non-physical works will act as a new wind for young generations to enter the art market.
Picard Project, which plans art joint purchases and exhibition contents, opens the’Define Art Platform’ and starts trading NFT art works with the work of digital artist Mari Kim this month. Seoul Auction and its subsidiary Seoul Auction Blue are also preparing to advance into digital assets to expand the art market. Virtual asset technology testing is being conducted with SOTWO, a joint purchase service for art works operated by Seoul Auction Blue, and XXBLUE, a limited-edition trading platform, and is expected to be introduced in earnest in the third quarter of this year. Seoul Auction Blue is in charge of technology development, and Seoul Auction proceeds to discover artists.
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| ‘EVERYDAYS: THE FIRST 5000 DAYS’ by digital artist Biffle [사진=로이터 뉴스핌] |
The Pica Project and Seoul Auction’s entry into the digital asset market is due to the recent hot topic of NFT trade in the international art market. At Christie’s auction on the 11th (local time), American digital artist Beeple’s collage work’EVERYDAYS: THE FIRST 5000 DAYS’ was traded for 69.3 million dollars (about 78.5 billion won). This work was in JPEG format with a size of 300Mb and started at $100 (about 110,000 won). After a fierce battle, Biffle has gained a reputation as a writer with the third highest auction price among existing artists, following Jeff Koons and David Hockney. In addition, Tesla CEO Elon Musk’s wife earned 6.5 billion won for 10 points of her NFT digital paintings.
NFT (Non-Fungible Token) is a’non-replaceable token’, and the blockchain technology, which is the basis of virtual currency, is applied. Unlike’Bitcoin’, which has the same value and can transact with people with the same token, NFT tokens are unique assets that cannot be duplicated because they have an identification code applied to them. The transaction history and ownership of the work are recorded, allowing even’digital asset authentication’ by itself.
That is why NFT is in the spotlight in the transaction of content for games and works of art. The value of NFT is known as’Crypto Kitty’, a game that creates a new cat through crossbreeding, which was one of the projects conducted by Canadian startup Axiom Zen in 2017. At the time of September 2019, a specific cat character was exchanged for about 170,000 dollars (600 Ethereum). In addition, the NFT transaction ignited as the’NBA Top Shot’, which converted the highlight video content of US basketball NBA players into NFT, was traded. At the time, LeBron James’ 10-second highlight video was sold for 208,000 dollars (about 236 million won).
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| [사진=게티이미지뱅크] |
Some say that the NFT art trade should proceed quickly as part of expanding the current closed art market. This means that the 2030 generation will lead the art market in the future, and in a situation where the world is changing due to technological changes, it means that we cannot rely solely on the transactions of existing collectors. The NFT market, where bank transfer or card payment is not possible, and trading after opening a virtual cryptocurrency wallet may feel tired to existing collectors, but the 2030 generation is interested in digital currencies and assets such as NFT and investing heavily. It is highly likely to contribute to the boom in the art market as it is excellent in obtaining information about the Korean market.
Suh Jin-soo, a professor at Gangnam University School of Economics, also insisted that it is necessary to analyze the consumption tendency and investment of young collectors within the art world, and to study and participate in such a way that transactions based on the digital market can take place. Professor Seo diagnosed, “In the world of art and investment, scarcity is the most important. The scarce thing is, the price is infinite, and it was a question of whether it was possible to make scarce things or not.” He suggested, “The art market is expanding, and young MZ generations approach art works differently from ordinary collectors,” he suggested.
Professor Seo also urged the art world to grasp and move quickly to the changes in the capital market. He said, “In the meantime, as IT capital entered the art market, the preoccupation was taken.” He then emphasized, “With the current art market expanding, the art world must also participate in technology development and research.”
There is also a prospect that the trade of technical works will become a natural thing in the future. An auction official said, “It is a market that is easier for young people to access, but the whole art market will become digital assets in the future.” Art critic Lee Taek-kwang, professor at Kyunghee University, also said, “There is a view to see virtual currency such as bitcoin as speculation, but this is a technology that solves the speculative problem in finance.” He added, “There are people who have an antipathy for this technology, but if you approve and receive it positively, you can use it as a genre.”