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A non-fungible token is a form of blockchain-based
digital asset which has exploded in popularity in 2021, with
prices soaring as collectors and enthusiasts rush to buy the
items which only exist in digital form.
Last month, an NFT artwork sold for $69.3 million at Christie’s,
in the first sale ever by a major auction house of a piece of
art that does not exist in physical form.
The Sotheby's sale, called “‘The Fungible’ Collection”, had a
complex structure, including a series of digital cubes which
collectors could buy for $500 to $1,500 each, receiving a number
of NFTs based on how many cubes they own.
The artist is known only as Pak, with the Twitter handle @muratpak.
The sale also included four limited edition NFTs which were
awarded to the winners of specific tasks, including paying the
highest amount for a Pak artwork on the secondary market and
posting the hashtag #PakWasHere to the biggest social media
audience.
An NFT called "The Pixel" - an image of a single pixel - was
also up for auction, fetching $1.36 million after a 90-minute
bidding battle.
The NFTs in the collection are represented by animated images
designed by Pak. They are three-dimensional white and grey
shapes on a black background, apart from the pixel, which is
just a grey square.
In each case, no physical object changed hands – the NFTs exist
exclusively in digital form, with blockchain acting as a public
ledger to verify their ownership status.
Max Moore, contemporary art specialist at Sotheby's, said the
sale was targeted towards "crypto-native" collectors.
"These new crypto investors have a very different aesthetic and
a very different taste profile than a traditional collector
would and so it's important to provide a mix and a range of
collectibles at Sotheby's to attract a wide variety of
audience," he said.
The sale took place online from Monday to Wednesday on Nifty
Gateway, which is owned by Gemini. Gemini is the cryptocurrency
exchange owned and operated by virtual currency entrepreneurs
Cameron and Tyler Winklevoss.
Buyers were able to pay in the cryptocurrency Ether, as well as
via debit or credit card.
(Reporting by Elizabeth Howcroft; editing by Jonathan Oatis)
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