The $69m sale of an online collage has transformed creator Beeple into one of the world’s most valuable living artists and fuelled the global mania for non-fungible tokens (NFTs). Expect NFT prices to keep rising.
NFTs are non-duplicable tokens published on a blockchain. They represent ownership of digital content such as a video or Beeple’s digital image Everydays: The First 5000 Days. Value is set by the people willing to buy, usually using cryptocurrencies. Christie’s auction house, which sold Beeple’s work, offered to accept payment in ethereum.
Using blockchain technology offers a public way to authenticate artwork and prove its association with the artist. It taps into the same desire to prove rarity that fuels demand for limited edition trainers or figurines. The more exclusive the item, the higher the price.