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NFTs are a ‘natural place’ for digital artists — Gal Yosef

After launching successful nonfungible token collections, the digital artist has set his sights on metaverse NFTs, believing they will become an important market in the future.

The hype surrounding nonfungible tokens, or NFTs, may have died down in recent months due to the crypto bear market, but that hasn’t stopped digital artists from experimenting in the new and exciting space. Gal Yosef, a globally renowned self-taught artist in the field of 3D art and animation, has proven his versatility by launching two successful NFT collections. In an exclusive interview with Cointelegraph, Yosef explained why NFTs are a “natural” transition for digital artists and why the industry is poised to grow despite current headwinds.

Yosef, who successfully launched his Meta Eagle Club NFT collection in January, explained to Cointelegraph why nonfungible artwork is so appealing:

“I think that the NFT has given massive exposure to all the digital artists mostly because it’s a very natural place for us.”
Specializing in cartoon-style avatars, Gal Yosef’s digital artwork is known for being extremely detail-oriented and life-like. Source: @galyosef Instagram

Approaching NFT art versus other forms of digital art

NFTs are a natural transition for digital artists because the vertical is “not a category by itself.” Rather, as Yosef explained, NFTs are “exactly the same art for me, exactly like I’m doing all the time and exactly like I always did just listed in other [platforms]." He said the art world is changing along with NFTs and “giving us a new platform to express ourselves.”

Yosef’s foray into the NFT market began in 2021 when he launched the Crypto Bulls Society collection. The collection reportedly generated over $50 million through primary sales and auctions. A one-of-a-kind NFT created in collaboration with American record producer Steve Aoki netted Yosef $214,000 at Sotheby’s auction.

When asked whether there were any learning curves about launching an NFT collection, Yosef said the only unknown was the market dynamics of the new industry. “I wasn’t sure what really [controlled] the outcome, then I realized it’s all based on the community; the art can be as beautiful as possible, but without good community, the artwork will not [succeed].”

Metaverse: The future?

In describing his first few encounters with the NFT world, Yosef said the broader blockchain industry, and specifically metaverse technology, could be “the next big thing.”

“[I am] looking to put my signature on it and make some big things,” he said without elaborating further.

Related: NFT market worth $231B by 2030? Report projects big growth for sector

While the existing metaverse industry has been described as “basic and weird” due to nascent technology and adoption, it’s expected to have a profound impact on gaming, social interaction and art. Some technologists and venture capitalists believe that the marriage between metaverses and NFTs is inevitable — and that metaverse NFTs will power the next growth cycle in digital collectibles.

NFT sales volumes peaked in 2021 during the height of crypto mania, with the likes of Bored Ape Yacht Club and CryptoPunks generating billions of dollars in lifetime revenue. Although the market is in a cooling phase, rumors of its death have been overstated, according to industry data aggregator DappRadar. NFT sales volumes were a healthy $3.7 billion in May. While activity has continued to fall during the summer, the arrival of major brands such as Tiffany & Co reveals that many companies are strategically pivoting into the NFT market.

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EU Parliament’s Rapporteur on MiCA Crypto Law Stefan Berger Sells Pair of Slides as NFT

EU Parliament’s Rapporteur on MiCA Crypto Law Stefan Berger Sells Pair of Slides as NFT“Freedom in a wallet” is how Member of European Parliament Stefan Berger describes the non-fungible token (NFT) he is now selling on Opensea. The NFT represents a pair of ‘Bergoletten’ slides. Shoes symbolize the first step in every development, says Berger who invested efforts in making sure Europe’s upcoming crypto legislation gets the backing of […]

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Christie’s launches venture fund aimed at Web3 and blockchain investments

According to the auction company, its first investment will be in LayerZero Labs, a company developing solutions for enabling omnichain decentralized applications.

Christie's, the auction house known for its sales of art and luxury items, has launched an investment fund to support emerging companies with technology enabling “seamless consumption of art.”

In a Monday announcement, the auction company said the fund, Christie’s Ventures, will financially support firms in Web3, “art related financial products and solutions,” and technology related to art and luxury goods. According to Christie’s, its first investment will be in LayerZero Labs, a company developing solutions for enabling omnichain decentralized applications, allowing a more seamless transfer of assets between blockchains.

“We will focus on products and services which can solve real business challenges, improve client experiences, and expand growth opportunities, both across the art market directly and for interactions with it,” said Christie’s Ventures global head Devang Thakkar.

Related: Christie’s NFT expert to lead CryptoPunks, fake heiress launches NFT collection

The move into blockchain-related investments represented another step for Christie’s to support ventures in the crypto space. In 2021, the company hosted an auction for a piece of nonfungible artwork from Mike Winkelmann, also known as Beeple, raising more than $69 million. Since then, it has held several high-profile sales for NFT artwork and partnered with the OpenSea online marketplace for on-chain auctions.

2022 is shaping up to be a record year for blockchain-related venture funding. As Cointelegraph reported, blockchain- and crypto-focused firms raised $14.8 billion in the first quarter of the year, nearly half of 2021's totals. Although activity has waned due to the bear market, startups with a focus on Web3 and the Metaverse continue to attract significant capital.

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Ukrainian Soccer Club Shakhtar to Raise Humanitarian Funds Through NFT Sale

Ukrainian Soccer Club Shakhtar to Raise Humanitarian Funds Through NFT SaleShakhtar Donetsk, a leading soccer team in Ukraine, will sell a collection of non-fungible tokens (NFTs). The club intends to auction several signed jerseys to raise funds for Ukrainian citizens affected by the ongoing war with Russia. FC Shakhtar Donetsk to Auction Digital Collectibles With Help From Binance Binance NFT, the marketplace for non-fungible tokens […]

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Auctioneer willing to sell $70M artwork for BTC or ETH

A leading U.S. auction house, Phillips is auctioning a Baqueirat collection in May. Accepted payment options include Bitcoin and Ether.

In further signs of crypto adoption among the art world, a leading United States auction house will accept crypto as payment for a series of paintings. A Jean-Michel Basquiat collection is up for auction by Phillips, with Bitcoin (BTC) and Ethereum (ETH) listed as payment options.

The showstopper 16-foot painting, Untitled, 1982, is “estimated in the region of $70 million” (roughly 1650 BTC or 25,513 ETH). It will go under the hammer in New York on May 18th.

Scott Nussbaum, Senior International Specialist, 20th Century & Contemporary Art from Phillips told Cointelegraph that buyers “are interested in the option of cryptocurrency as a method of payment for traditional artworks.”

The Baqueirat painting. Source: Phillips 

Given that “the beauty of Basquiat is his ability to inspire both seasoned and new collectors,” extending “the option for buyers to pay in cryptocurrency,” is a deft move. Ultimately, Nussbaum explains, accepting cryptocurrency as payment for other works “will only continue to increase.”

Nussbaum told Cointelegraph:

“The interest in cryptocurrency and NFTs from the traditional art world is growing rapidly. And though it’s impossible to predict the future, we believe the intersection of digital and traditional art worlds will only continue to flourish.”

It’s not the first time that the auction house has explored cryptocurrency, although the previous sale was an order of magnitude smaller. In June 2020, Phillips auctioned a Banksy piece, Bitcoin and Ether as accepted payments. It sold for roughly $3.2 million. 

Coincidentally, a price target for the Basquiat of around $70 million is the hammer price for the infamous Beeple NFT auction, which closed in March 2021. Christie’s auction house managed the sale, inspiring further cryptocurrency-related auction house activities.

In November 2021, rival auctioneers Sotheby’s took ETH bids in real-time for a Banksy auction. In May of the same year, Sotheby’s partnered with Coinbase to manage auctions in Bitcoin and Ether before taking charge of crypto payments in-house.

Related: The city of Lugano will accept Bitcoin, Tether and LVGA tokens as 'de facto' legal tender

Nussbaum sums up the fashion for cryptocurrencies in the art world, explaining that “there are many new collectors who are very engaged in cryptocurrency.”

“It was only a matter of time before it would be of interest as a method of payment.”

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CryptoPunks ‘have changed the history of art,’ says panel at Sotheby’s auction

Despite a canceled sale of 104 CryptoPunks, auction-goers and live stream participants listened to a panel of NFT experts who shared their love of Punks.

CryptoPunks enthusiasts and hopeful bidders gathered Wednesday night at Sotheby's auction house in New York City for what tuned out to be a non-event after the consignor of 104 CryptoPunks decided to hodl.

In the wake of this announcement, however, a live panel discussion on the history of nonfungible tokens (NFTs) and CryptoPunks took place. The panel consisted of Sherone Rabinovitz, technologist and CryptoPunk expert, and Kenny Schachter, art critic and curator. Colborn Bell, founder of the Museum of Crypto Art, moderated.

When asked about the early history of Larva Labs and CryptoPunks, Rabinovitz, who produced a documentary about the team in 2018, began by lauding CryptoPunks as the first project "to get everything right." From the aesthetics to its marketplace, Larva Labs "sprinkled their magic" on an experiment to test digital ownership. He added that the beauty of CryptoPunks goes "beyond the pixels and the cultural payload," and that the code is "gorgeous" enough to print, frame and hang on the wall.

In 2017, Larva Labs heralded blockchain-based generative art on Ethereum with its algorithm that randomly generated pixelated punk characters. Since then, Punks have gained mainstream recognition to become one of the world’s most valuable NFTs. It is currently the most traded collection in terms of volume of all time on OpenSea. 

Schachter, on the other hand, discovered NFTs and CryptoPunks much later in 2020, admitting he didn't like it at first. "I think one of the most important things in life is to relate and try to understand why you don't like what you don't like," he said, adding that he eventually learned to fall in love with CryptoPunks. He explained:

"They've become a paradigm shift in the history of culture, something which is a hybrid between Fine Art and collectibles. They have changed the history of art without even intending to be an art piece in the first place."

Colborn then chimed in to point out that even though Schachter doesn't own a Punk, he embodies the spirit of one. According to Colborn, Punks represents people who are fearless, who speak their minds, who let their values be known and recognize that change is possible.

Rabinovitz noted that an element about CryptoPunks that goes "unappreciated" is that the collection falls within the pop art movement, alongside Andy Warhol's work:

"If you're focusing too much on rarity, you're kind of missing the point. Don't forget what Punks are. They're ambassadors of a whole new age, and a new movement."

Schachter, who launched his own parody collection of NFTs called CryptoMutts, left the audience with his hopes for a future where all digital works will be projected into real space and where NFT communities continue to inspire more artists.

Related: 101 Bored Apes NFT auction at Sotheby's closes at more than $24M

Last year, Sotheby's set a world record with an $11.8 million sale for a single CryptoPunk. And Bored Apes Yacht Club, the second-most traded NFT collection, flipped CryptoPunks' floor price. At the time of publication, the lowest priced Punk is at 59.95 ETH, or $148,223, whereas the lowest priced Bored Ape goes for 80 ETH, or $201,549.

CryptoPunks earned the #20 ranking in Cointelegraph's 2022 list of Top 100 influencers in crypto and blockchain.

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Seller ‘rugs’ $30M CryptoPunks collection minutes before Sotheby’s auction

After pulling out of $30 million Sotheby’s auction just minutes before it was set to go live, the anonymous NFT collector made fun of the luxury art auction house on Twitter.

NFT enthusiasts and fine art collectors have been left confused, after an auction for a collection of 104 CryptoPunks estimated to be worth around $30 million was canceled at the last-minute.

The event, hosted by famous fine-goods auctioneer Sotheby’s, was on track to be one of the largest NFT auctions in history — up until the pseudonymous owner of the ‘Punk It!’ collection suddenly withdrew from the auction.

The CryptoPunk hodler’s reasons behind the move remain unclear, however in the aftermath of the canceled auction, the anonymous owner who goes by ‘0x650d’ on Twitter sent out a seemingly nonchalant tweet to his 12 thousand followers noting “nvm, decided to hodl”

The collector went on to make light of the situation, posting a meme insinuating that they were "taking punks mainstream by rugging Sothebys.” While this wasn’t an actual “rug pull” where investors are illegally stripped of funds, it certainly left Sotheby’s and the community in the dark. 

Haralobos Voulgaris, a quantitative researcher for the Dallas Mavericks, wcalled the collector a “clown”, 

“[0x650d] may have made their motivations about their decision to pull out slightly more clear — choosing to poke fun at the high fees charged by auction houses like Sotheby’s.”

The NFT industry has witnessed near-exponential growth in 2021, with CryptoPunks, created by Larva Labs, generating over $2 billion in sales volume since inception. 

Despite the fact that this would have been Sotheby’s first entirely NFT-focused event, the auction house has shown an aptitude for capitalizing on the lucrative NFT market, selling over $100 million worth in NFTs last year alone, $24 million of which occurred at a single auction.

Related: CryptoPunks community reacts to the ongoing copyright battle between v1 and v2

This recent clash shines light into the ideological chasm between the nonconformist “cyberpunk” culture of Web 3 and the more composed, “highbrow” culture of traditional institutions.

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Counterfeit NFTs result in marketplace shutdown: Experts weigh in

The NFT Platform famous for minting Jack Dorsey’s first tweet has halted NFT operations amidst counterfeiting and illicit activity calls.

“Rampant” issues relating to minting counterfeit nonfungible tokens, or NFTs, have forced popular platform Cent to halt some operations.

Founded in 2017, Cent kicked off as a “social network and informal platform for creative experimentation.” In 2020, the team also launched an NFT platform called Valuables to mint and auction iconic tweets.

Jack Dorsey’s first tweet, “just setting up my twttr,” sold for $2.9 million on the platform in March last year. On February 6th, the platform ceased NFT trading due to “a spectrum of activity” that "shouldn’t be happening."

Cameron Hejazi, co-founder of Cent told Cointelegraph:

“People in this space tend to cry 'caveat emptor' or 'buyer beware' but protecting creators from those who might steal or abuse their work — and protecting buyers from potential fraud— is very important.”

Hejazi told Reuters that the issue was threefold. Firstly, the sale of unauthorized NFT copies, second, the sale of stolen content converted into NFTs, and finally, the sale of NFT sets that resemble securities.

Amidst NFT money-laundering concerns, the first NFT seizure in a UK VAT fraud case and even NASA wading in with its criticisms of the space, NFTs have had a rough start in 2022.

Umberto Canessa Cerchi, CEO of Kryptomon, an NFT Play-To-Earn blockchain game shared that while growing reputational concerns are a concern for the industry, it is not enough to put off potential first time NFT buyers. He told Cointelegraph that among first-time buyers:

“Most of them will end up buying a fake, and then when they find out about it, they will declare all NFTs 'scams,' and that's bad for the industry.”

Cerchi shared that “consumer protection laws” may improve the situation and better education would “prevent the industry from becoming a victim of fraud.”

Related: YouTube sees ‘incredible potential’ in NFT video sales despite backlash threat

Phil Gunwhy, Partner and Brand Strategist at Blockasset.co, the first athlete-verified NFT sports platform, is optimistic about the future for NFTs and regulation. He told Cointelegraph:

The problem with fake listings is correlated directly to how marketplaces do not regulate the listings that appear. There are many marketplaces that do now allow users to upload and create NFTs on the fly and instead only allow verified listings.”

He added that “developing relevant regulations” could be challenging in the short term, but there is “an expectation that this will trickle down to the NFT ecosystem.” 

As the U.S. Treasury takes aim at money laundering and NFTs, there could be further scrutiny to come. Ultimately, Hejazi hopes to “open an industrywide conversation around this issue” to root out offenders. 

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Luxury Auction House Sotheby’s Plans to Auction 104 Cryptopunks Worth an Estimated $20M

Luxury Auction House Sotheby’s Plans to Auction 104 Cryptopunks Worth an Estimated MOn Tuesday, the British-founded American multinational luxury auction company Sotheby’s, headquartered in New York City, announced the auction house is planning to auction a lot of 104 non-fungible token (NFT) Cryptopunks. The lot of 104 NFTs is predicted to fetch around $20 million to $30 million in USD value, according to Sotheby’s. Sotheby’s ‘Punk It!’ […]

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