By acquiring control of their brands via NFTs, artists and content producers are pushing the creator economy over the $100 billion barrier.
Nonfungible tokens (NFT) have enabled artists to reclaim ownership of their work and finances. Experts believe that artists and creators that tokenize and issue their work as NFTs eliminate the need for third-party middlemen.
While galleries have historically done the legwork in finding purchasers, their utility is dwindling as more affordable decentralised applications (DApps) enable investors to engage directly with their favourite artists. This is resulting in the emergence of a new paradigm in the creative economy powered by NFTs.
With the creator economy now valued at over $100 billion with plenty of room for growth, and NFT marketplaces OpenSea and LooksRare generating over $100 million in daily volume, according to market tracker DappRadar, it makes a lot of sense for creators to figure out how to maximise the value of their work.
Danielle Weber, an Australian NFT artist, believes that more artists should tokenize their work and take charge of their personal branding. The ten-year artist detailed the numerous flaws she sees in the traditional art market and how NFTs have enabled her to circumvent them. She is an outspoken advocate for NFTs as a novel tool for makers.
“I would strongly advise all artists to tokenize their paintings. What drew me to the notion of becoming involved in the NFT art scene was the fact that it made art more accessible to everyone.”
Accessibility is critical for artists because it increases their chances of selling their work when more people view it. Without the use of intermediaries, the NFT environment enables direct engagement between artists and fans. This resulted in what Weber referred to as a “beautiful cycle.”
Julien Genestoux, a former lead programmer at blogging platform Medium, feels that artists and content creators should take control of their products via NFTs, including fan involvement, he stated that the NFT space helps “remove arbitrary moats” between artists and followers.
Genestoux believes that creators have the freedom to promote themselves whatever they desire, but that doing so imposes an additional duty. He stated that before creators take on the role of their own manager on their platform, “they should consider the relationship they want with their audience and the unique service they can provide.”
“Once you’ve determined what you can offer on your own, use NFTs as a contract that you retain control over.”
He agrees that while established channels such as YouTube and Facebook are easier to use and offer significant distribution advantages over smaller sites, he believes that direct connection with followers is more vital.
“I believe that you should establish your own platform. That is one of the benefits of maintaining an independent relationship with your supporters.”
Genestoux emphasised that non-financial transactions (NFTs) by creators do not have to be limited to artists. As of February, entertainers using the Only Fans social networking app can post NFT profile images. Amrapali Gan, the company’s CEO, stated that the new functionality is only the “initial step in examining the role that NFTs can play on our platform.”
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.