NFT: Asset vs Ticket

Offline
In the offline world, a piece of art can be monetized in the following ways:
  • The art is sold: the asset changes hands physically plus rights
  • The art is loaned: tickets to view, re-publication permissions etc
  • The art is appreciated: tips, patronship

Sold | Asset
In terms of art as an asset to be bought and sold, adding NFT to an art does not magically give it extra value. In the longer term, the market goes back to the art, the sustained presence of aficionados and an orderly market. Stories of NFT sales to the value of millions of bucks by celebrities are more a measure of their celebrity status.

Loaned | Ticket
In terms of art as entertainment, this is where NFT seems to have more value. However, in the longer term, since NFTs are easily created, the market will be flooded with NFTs. Then, for any particular non-celebrity artist, it would be back to the 'SEO challenge': getting noticed in an ocean of content. NFT in this case is useful only when the artist has gain prominence: enough for him or her to sell tickets (eg in the form of NFT collectibles).

Patronship | Tips
This is an example of the importance of middlemen though their role is downplayed by NFT promoters. An artist uploads a video to YouTube. If the YouTube discovery algorithm shows this to enough viewers, the artist's work (and the artist) will gain prominence, likes and subscribers. NFT usage: Say, YouTube has a tipping function. For a tip, the tipper gets a cute NFT badge as a token of thanks and nano badge of honour.

Gaming | Metaverse
This is where NFT has a natural use-case. In games (or metaverse), NFT can be used to attest ownership of a game item (armour, weapon, widget, land etc) allowing the item to be bought, kept and sold within a game (or outside in exchanges). NFT is such a mouthful, eventually its usage as a term will likely fade into the background. When one buys a sword, one gets a sword, the nuts and bolts of the use of a non-fungible token (or otherwise) are kept under the hood.

NFT Event
We have attempted to de-buzz NFT a bit here after seeing some rather bizzare NFT art. For the latest NFT buzz, check out CoinGecko's NFTs Gone Wild conference happening online Nov 17-19, 2021.