Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Investors target booming digital art market despite ‘heist’ fears

Investors target booming digital art market despite ‘heist’ fears

Last month much of the traditional art world had not heard of Mike Winkelmann. Then the digital artist sold a piece that only exists online for £50 million at a Christie’s auction. Beeple, as he is professionally known, is now the third most expensive living artist in terms of auction prices, after Jeff Koons and David Hockney.
The sale of Winkelmann’s computerised collage of 5,000 images — which include a pregnant cyborg Michael Jackson and a Buzz Lightyear with breasts — has catapulted the digital art scene into the spotlight.

It was made possible by new blockchain-based technology called “non-fungible tokens”, or NFTs, which are certificates of authenticity stored on digital ledgers to prove ownership.

Minting art that has no physical presence but can fetch millions at auction is now “no harder than uploading a video to YouTube,” Winkelmann, 39, said. A surge in demand has led to platforms with marketplaces for such works attracting billionaire investors, celebrity endorsements and attention from artists such as Damien Hirst.

Beaumont Nathan, a leading British art advisory firm, estimates that at least $400 million in digital art has changed hands in the past 18 months, about half of those sales since Christmas.

NFT Investments, an investment vehicle for digital art that is planning a £25 million London float, cited estimates in a trading statement that NFT sales across the industry amount to more than $500 million to date, with $240 million taking place in March.

That figure will grow tenfold in the next year, experts at Hiscox predict. The insurer, which specialises in art, says there has been a “huge growth market in cyber insurance” in the past five years. Aon, another big insurance company, said it was dealing with a “growing number” of art clients who were “developing into the digital space”.

The boom is puzzling many observers in the art world due to the unconventional style of the pieces selling for eye-watering sums, which often have dystopian themes. It has also raised concerns about hacking, money laundering and the security of digital assets.

When the hammer went down last month on the work by Winkelmann called Everydays: The First 5000 Days, it marked the first collision of the traditional and digital scenes, after the auction house Christie’s was persuaded to test the waters of NFTs. Sotheby’s followed suit the following week, announcing an auction deal with another popular digital artist called Pak.This acceptance from art institutions has been hailed as evidence that the crypto world is becoming mainstream.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Hungary Ranked Among the World’s Safest Travel Destinations for 2025
G7 Leaders Fail to Reach Consensus on Key Global Issues
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Man Convicted of Fraud After Booking Over 120 Free Flights Posing as Flight Attendant
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Beata Thunberg Rebrands as Beata Ernman Amidst Sister's Activism Controversy
Hungarian Parliament Approves Citizenship Suspension Law
Prime Minister Orbán Criticizes EU's Ukraine Accession Plans
Hungarian Delicacies Introduced to Japanese Market
Hungary's Industrial Output Rises Amid Battery Sector Slump
President Sulyok Celebrates 15 Years of Hungarian Unity Efforts
Hungary's Szeleczki Shines at World Judo Championships
Visegrád Construction Trends Diverge as Hungary Lags
Hungary Hosts National Quantum Technology Workshop
Hungarian Animation Featured at Annecy Festival
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
UK and EU Reach New Economic Agreement
Coinbase CEO Warns Bitcoin Could Supplant US Dollar Amid Mounting National Debt
Trump to Iran: Make a Deal — Sign or Die
Operation "Like a Lion": Israel Strikes Iran in Unprecedented Offensive
Israel Launches 'Operation Rising Lion' Targeting Iranian Nuclear and Military Sites
UK and EU Reach Agreement on Gibraltar's Schengen Integration
Israeli Finance Minister Imposes Banking Penalties on Palestinians
U.S. Inflation Rises to 2.4% in May Amid Trade Tensions
Trump's Policies Prompt Decline in Chinese Student Enrollment in U.S.
Global Oceans Near Record Temperatures as CO₂ Levels Climb
Trump Announces U.S.-China Trade Deal Covering Rare Earths
Smuggled U.S. Fuel Funds Mexican Cartels Amid Crackdown
Austrian School Shooting Leaves Nine Dead in Graz
Bezos's Lavish Venice Wedding Sparks Local Protests
Europe Prepares for Historic Lunar Rover Landing
Italian Parents Seek Therapy Amid Lengthy School Holidays
British Fishing Vessel Seized by France Fined €30,000
Dutch Government Collapses Amid Migration Policy Dispute
UK Commits to 3.5% GDP Defence Spending Under NATO Pressure
Germany Moves to Expedite Migrant Deportations
US Urges UK to Raise Defence Spending to 5% of GDP
Israeli Forces Intercept Gaza-Bound Aid Vessel Carrying Greta Thunberg
IMF Warns of Severe Global Trade War Impacts on Emerging Markets
Low Turnout Jeopardizes Italy's Citizenship Reform Referendum
Transatlantic Interest Rate Divergence Widens as Trump Pressures Powell
EU Lawmaker Calls for Broader Exemptions in Supply Chain Legislation
France's Defense Spending Plans Threatened by High National Debt
European Small-Cap Stocks Outperform U.S. Rivals Amid Growth Revival
Switzerland Proposes $26 Billion Capital Increase for UBS
×