The fledgling NFT art space is divided into a number of different genres. At the forefront of these are collectibles, 1 of 1s and photography.
Collectibles
The whole NFT art phenomenon initially started with collectibles, specifically 10000 image projects. These now range from Cryptopunks to Happy Hermits: 10k images of a basic character with various traits that make each image unique. These images are then purchased by collectors to act as their profile picture. The “blue-chip” projects have become a status symbol for collectors and celebrities alike and are traded for thousands, even millions of dollars at a time.
To create a collectible project requires an increased amount of technical know-how compared to the other genres here listed and, depending on the project, less artistic flare!
The various aspects of the characters are created, for instance: different facial expressions, hats, background colours, glasses, clothing etc. and an application randomly generates the individual images using these variables.
There are manually produced collectibles but these are in the minority and are thus generally more sought after.
This area will continue to produce profits but probably only among a limited number of projects as this space becomes increasingly saturated. Smaller collections produced by media companies may begin to dominate this market in the coming years. DC Comics, Marvel and Disney are investing heavily in producing limited edition collectibles of their popular characters. These are available on the VeVe.me website, and are often sold out within seconds.
1 of 1
1 of 1 NFT art is a category that is dramatically changing the art world. Talented artists from all over the world are bypassing curators and galleries and minting their creations on online platforms, selling directly to collectors. These pieces are exclusive and rare. They range from traditional art (oil, water colour etc.) to high definition digital art, including generative art projects produced by AI.
There exists a huge opportunity for struggling artists to put their portfolio in front of the eyes of millions of collectors and investors as this market develops. The addition of secondary sale proceeds has added an extra dimension to the earning possibilities for artists. All subsequent sales of their piece will continue to earn them revenue.
Photography
A rapidly growing sector of NFT art is photography. Often, these are artists who have been working for years in the journalistic field. However amateur shutterbugs have also been taking advantage of this new marketplace for their compositions. This could yet prove to be an incredible source of income for photographers around the world as well as producing stunning photos for collectors.
Where to list your art?
The number of online marketplaces for minting and listing NFT art is growing everyday. At the present time Opensea, HEN and Foundation are leading the pack.
Broadly, HEN and Foundation are “1 of 1” friendly and Opensea hosts many of the larger collectible projects. But there are many examples to disprove this generalisation and any artist entering this space should seek out the platform that best suits his personal portfolio.
Opensea’s “lazy minting” provision is excellent for beginners with limited budget. The seller can list an unlimited collection with only one initial setup fee. The actual minting of the individual NFTs themselves is paid for by the buyer upon purchase.
HEN uses the Tezos blockchain and minting an NFT costs about $0.30. Foundation, which requires an invitation to open an account, is subject to variable ETH gas fees which can be in the $100s at times!
Utility
The emerging requirement for many NFT projects is utility – the ability to use the token for something other than just artwork or a profile picture. Gamification is the natural progression for this aspect of the market. Purchasing avatars and upgrades is already an established component of gaming. Integrating NFTs into this environment is likely to be the greatest and most ubiquitous application of blockchain technology aside from Bitcoin.
Other projects are offering NFTs as a security, with the promise of dividends for loyal holders. Its likely we’ll see a wide variety of offerings in the near future as mainstream attention begins to turn to non-fungible tokens and the earning potential they can offer.
The Opportunity
“We’re early.”
These words are on the lips of almost everyone already involved in NFTs. With only around 400000 users on Opensea, currently the largest NFT marketplace, and over 1.5 million in the waiting list for Coinbase’s NFT platform the potential for growth is off the scale. But fame and fortune isn’t guaranteed just by minting an NFT! Artistic newcomers to this space would do well to work hard on their art and build a community around their brand. Currently collectors are as interested in the amount of active users on a project’s Discord server as they are in the artwork. So the opportunity is there to be a pioneer in the metaverse. As with most areas of life our success will depend on the amount of work you are willing to put in!
