NFTs and Value

Depending on your perspective, Non-Fungible Token (NFT) artworks are inaugurating an exciting new chapter in the history of art, or a dangerous online market bubbles. NFTs index artworks, and typically strings characters stored blockchain such as Ethereum. not exclusively used to have been range collectibles, but it is sale associated with that has launched phenomenon into public consciousness. Perhaps most famous example this digital artist Beeple’s NFT for equivalent $69 million (Krastrenakes). For some, staggering prices suggest poised become next Beanie Babies—i.e., commodities without utility sell at vastly inflated prices. Despite cynicism, some argue revolutionary technical import, they could overturn many common unequal practices within contemporary art (Rennie et al.). Chief among these supposed disposability which viewed difficult sell, resell, protect from piracy. Such issues thought be ameliorated by NFTs, since function token understood stand “definitive indicator ownership” (Mackenzie Bērziņa 2). Or, Rachel O’Dwyer summarised, auctions like Ethereal Summit held New York 2018 allow individuals bid “ownership provenance details works encrypted Ethereum represented token” (O’Dwyer). Unlike more conventional artwork, painting, take form JPEGs GIFs, therefore circulate Internet widely, regardless who owns designates ownership. While reproductions printed documentations traditional commonplace—e.g., gallery giftshops will often relatively low-cost posters masterpieces Picasso’s Guernica, coffee table books showcasing masterworks influential movements post-impressionism—there obvious material differences between reproduction original. In case distinction does apply. Accordingly, academic popular discussions surround reignited theoretical questions around ontological status source their economic value. financial bubble attracted particular NFT-linked no underlying value (BBC News). others, can explained through appeal subjectively attributed image animation purchaser (Nguyen), while others should terms scarcity al.; Joselit) technological means artists maintain greater share artwork’s (Kugler). novel, worthy study its specific forms, article placed longer emergence what Luc Boltanski Arnauld Esquerre called “enrichment economy”. Enrichment: A Critique Commodities, that, least last quarter twentieth century, site valorisation emerged post-industrial economies. According Esquerre, globalisation deindustrialisation provoked economies embrace tourism, luxury good production, commodification heritage culture sites extraction. As viability mass production receded, unique transient yet “unforgettable” experiences economically significant. enrichment refers both often-discursive refining redefining existing commodities—such fetch prices—and emphasis economy those disposable income—such tourists, collectors, wealthy generally (3-4). Often, argue, tend mine exploit “underlying substratum purely simply past” (2). reason, requires forms authenticity, “aura”, belief, overlooked taken-for-granted objects past reframed investment consumption. The interesting question, then, necessarily why someone would pay large sum money own piece code blockchain, but, instead, how comes “enriched” authenticity aura. thoroughgoing discussion topic require piece, nevertheless attempt open up connections history, debates artistic during after Modernism, newly emerging market. declared “disrupting market” (Tripathi)—supposedly evinced growth market, institutional recognition, ArtReview’s decision place top Power 100 List 2021—this seeks locate explosion slightly timeframe, one feature continuation—albeit non-linear one—rather than disruption ongoing cultural logics. Value Void incredulity commonly meets similarly flaunts understandings aesthetic surely agree journalist Amy Castor’s claim “it’s hard justify Bored Ape worth $300,000 based art” (quoted Artnet), almost identical criticisms raised Maurizio Cattelan’s 2019 work Comedian. Released edition three, Comedian consisted banana duct-taped wall, two three selling $120,000 each. Sara Callahan puts it, “what makes something high-priced artwork when another, seemingly identical, object not?” (Callahan). reawakening interest question value, financialisation cheaply made mass-produced much history. Indeed, 1960s, booming secondary traded increasingly expensive, cheap-to-produce avant-garde works—often requiring small amounts time inexpensive materials—raised suspicions was becoming indistinguishable assets. response, 1968 critic Leo Steinberg argued “avant-garde lately Americanized, first big money. … Another decade, we shall mutual funds securities pictures bank vaults” Beech 300). Dave shown, ensuing period, “art’s relationship finance capital outstripped Steinberg’s worst fears” (Beech 301). By 1980s, banks allowed borrow sums against collections, became normal practice portfolio diversification 299–300). When rates low, investments productive offer low levels liquidity, international markets appear vulnerable shocks, artworks—whether physical NFT—offer hedging future losses. Furthermore, purchases individual prevent “the bottom falling out already invested in” fact hold well excess cost materials labour required produce them, solely recognised collectors investors. Instead, period saw great number explicitly playing aporia had art’s value—insofar ready-made now reserved laboriously produced masterpieces. Take, example, Yves Klein’s project Zones Immaterial Pictorial Sensibility, he developed over late 1950s early 1960s. works, Klein offered opportunity purchase void “immaterial zone” varying quantities gold, “20 grams (3/4 ounce) pure gold series no. 1, 1,280 (27/8 pounds) 7, expensive” (Cras 24). exchange void-owner receive receipt proof purchase. However, completed, requested burned collector, response throw half received river Seine destroying purchase, releasing river, collector full authentic immaterial work” (Klein quoted Cras We see resemblances here NFTs—and exception, since, documented, 1960s were replete experimenting novel Cras, problem attaching price offering them sale, traditionally considered external creation domain, incorporated practice” 3). If embracing asset, if divorced luxurious skilled able assert themselves valuable collection investment? How rather decoupling secure base diminishing instead led immense market? order pursue section turn Beech’s rethinking Marxist theory context Labour Here, worthwhile artwork. Beech, whatever exchanged Most neoclassical economists treat being synonymous, and, position, sense ask worth—or equivalent—to current price. writes, “neoclassical economics claims standard transaction determined entirely demand subjective perception purchasers” 291). Against view, offers interpretation emphasises labour-time reputation. Reputation key here, dismisses notion increase increases economists, (311) writes decrease ‘a floating crap game’, changing circumstances itself vis-à-vis esteem community”. states seriously affected—perhaps even driven—by non-purchasing “consumers” namely academics, commentators, other artists, determine general reputation artworks. want understand marketplace, need focus our attention evaluative discourses, knowledge, producing provide assessment legacy body work, photographic monographs. Artistic only expressed consumption products, activities learning asking reconfiguring combining rejecting them. high derive discourses 312). Whereas focusses socially necessary commodity, consumer producer. takes very little produce—such Comedian—can attract larger painting lesser-known spends months studio. Nevertheless, argues consumers maintaining price—the quantity for—and value—the total expended discussing, viewing, reproducing artwork—Beech provides us framework understanding emerge, exaggerating predictive powers framework. artist’s priced discourse expanding rapidly, there potential make below still speculative. contrast, perspective renders approach price/value unthinkable. What, distinguishes artistic—or artworld—discourse marketing? Beyond simple observation marketing teams directly employed capitalists push message related increasing surplus-value, “it condition contribution inflation independent interests stake” 313). Though put way, gap financially benefit produces “aura” Coca-Cola’s team unlikely change opinion about product, whereas produced—for part—by decentralised “artworld” curators, critics, museologists, historians, philosophers, viewers, all whom gravitate towards certain times—and arguably uncertainty uncoordinated nature shifts reputational favour feel miraculous. While, short term, Ape, Comedian, price, overtime—for happen, imagine process enrichment, find conversations beyond novelty tags. Enriching Blockchain recent years seen publication impressive sophisticated quantitative studies focussed quantifiable aspects (Vasan Nadini research shown connection prominent visibility crypto-platforms, expected NFT, suggests difficult-to-quantify factors must taken consideration. influence course important, capacity artwork—linked not—to discursively enriched, historically culturally significant appears testimony revaluation, vital long-term accrual Some attempted articulate terms. Paul Dylan-Ennis CryptoPunks—one older linked $1.6 million—we appreciate “are sought because age, antiques” (Dylan-Ennis). Dylan-Ennis, Cryptopunks insofar oldest NFTs”, accordingly, “their ‘metadata’” “longevity blockchain” desired Dylan-Ennis’s account, investing day significant, hence his injunction “look look medium get going on” But looking medium, perhaps fruitful nurture, generate, modify doing so, avoid conservative move denouncing basis arbitrary standard, also utopian associating fantasy “in subject free coercive mediating institutions, state chief wielding data certainty freedom social transformation” (Jutel 4). Rather freeing problems imposed ease reproduction, non-fungible fungibility circulation, commentary, discussion. boosters quick critique institutions provided training fosters expertise—in discussed Beech— gatekeepers artists. acknowledge gross inequities artworld academia, successful audiences participate objects, past. challenge cryptoworld face, whether, artworld, marshal similar discursive enrichment. cannot, may ironically same “gatekeeping” invoked bolster References Artnet. “‘They’ve Created Perceived Out Thin Air’: Whole Yacht Club Phenomenon, Explained.” 8 April 2022 <https://news.artnet.com/multimedia/the-art-angle-podcast-bored-ape-yacht-club-2094073>. BBC News. “What Are Why Worth Millions?” 23 Sep. 2021. <https://www.bbc.com/news/technology-56371912>. Dave. Art Value: Art’s Economic Exceptionalism Classical, Neoclassical Economics. Leiden: Brill, 2015. Boltanski, Christian, Esquerre. Commodities. Trans. Catherine Porter. London: Polity, 2020. 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