In an interesting twist on ‘virtual value’ a British artist, Damien Hirst, launched a series of 10,000 artworks and non-fungible tokens (NFT) to conduct an experiment that forces buyers to choose between possession of the physical artwork or its blockchain-based version.
The artworks have ‘banknote’ type security features – every artwork is signed, numbered, watermarked, and features an embedded hologram, making them very difficult to copy or forge.
Owners will have to decide whether to keep the NFT or the physical artworks, which are being kept in a secure vault.
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At 3 pm. BST on July 27, 2022, if collectors have not opted for the physical version, their print will be burned and they will retain only the NFT version. Otherwise, should they chose physical format, the corresponding NFT will be deleted from the blockchain.
In February, the first ‘Crypto Fashion Week’ happened and Versace went ‘digital’ for Milan fashion week. The rise of ‘Virtual Fashion’ NFTs has come out of a broader move by big fashion names to create virtual products aimed at the super-rich.
Exclusible is a new NFT marketplace which is the brainchild of Thibault Launay and Romain Girbal. The marketplace is tailored to these kinds of high end, limited edition virtual products.
‘The NFT market has witnessed a dramatic increase in value over the last few years. The market cap has increased almost ten times from 2018 to 2020, and in 2020 alone, its value increased by 299%’ – Thibault Launay
Recalling my article on Tekedia in November last year – ‘From Broke to Successful Entrepreneur, in Nigeria, You Need More Than an Idea and a Piece of Paper’ … I stated: ‘From ten year old boys begging on roadside with radio controlled models fashioned from painted cardboard, to adults with curious motorcycle, plane and helicopter contraptions, the problem is that while our hearts sink at the lack of outlet for the obvious creativity, we can see there is neither an obvious application for their creation as a product, nor an obvious path within the culture of typical matrix organisations, for a career opportunity’
But can the NFT route be a new means to monetize these curious and very unique contraptions?
An article for Bitcoin Magazine said that despite the ban brought out by FGN earlier this year, Nigeria’s insatiable appetite for virtual assets shows no signs of abating.
From July 4 to August 4, 2021, Nigerians have traded a USD equivalent of $38,083,688 in two P2P platforms, Paxful and LocalBitcoins. In the previous 30-day period, from June 4 to July 4, bitcoin trading in the main P2P markets in Nigeria amounted to $37,761,748.
But here’s the thing – Cryptocurrency trading is illegal in Nigeria! and while a way is obviously being found around it, why not take interest in the developing NFT market instead?
For sure if the Bitcoin Magazine quoted analytics platform ‘UsefulTulips’ can find out what is going on, no doubt FGN can.
All of the weird and wonderful home-made contraptions made in Africa can find a special place in the NFT world. Previously they have had no route to an international market as physical products… but as virtual ones?
Gucci and Versace may be making limited editions of Luxury NFTs but these home-made items made from salvage are not just limited, they are Unique! When each one is birthed the mould is broken!
How much more potential success can they enjoy then, if marketed as NFT’s according to the Damien Hirst model?
Prof Ndubuisi Ekekwe’s words – ‘Typically, digital companies begin online, winning bytes and bits, and over time move to the physical space to compete on atoms. From Amazon to Google no one stays forever online, because the physical world is where humans live.
By 2025, I expect massive redesigns because the digital natives will move from just bytes to atoms. So, expect massive battles in the physical domain…’
Well… this creates a new paradigm.
Yes, Ovim Village Boy 2.0 will be the one to send things back the other way and create massive value by making atoms become bytes.
Welcome to the NFT world of Africa Metaverse!
References and Acknowledgements (not in the main text body) :
www.linkedin.com/pulse/nft-market-overview-digital-asset-markets-data-thibault-launay/
www.exclusible.com/
decrypt.co/75914/damien-hirst-forces-buyers-make-choice-physical-art-nfts
hackernoon.com/the-rise-of-virtual-fashion-and-the-very-first-crypto-fashion-week-x54937uk
bitcoinmagazine.com/markets/nigeria-40-million-bitcoin-trading-p2p
tinyurl.com/Idea-piece-of-paper
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There are many ways to look at this kind of market, but the driving force is largely dependent on who the promoters and admirers are. If we think we can just create and then expect foreigners to lead the charge of attaching great value, then we will be disappointed.
If an American is willing to pay $2 million for Lincoln’s or Jefferson’s old photo, will a Nigerian be willing to part with N2 million for Azikiwe’s or Awolowo’s photo? How much will a Ghanaian be willing to pay for iconic photo from Nkuruma, and a South African for Mandela? If we can place big bets on these things, then it comes easier to get a marked up value from foreigners, else nothing much.
Shakespeare’s original manuscript for Macbeth will cost how much now? And where can we get Achebe’s Things Fall Apart for new round of auctioning? It takes a whole lot of storytelling and marketing to succeed in this new domain, not just wishes.
Mhagic will soon launch Vector, which can help all those local creators and inventors monetize their works, in a video format; rather than just getting only likes and ‘wow’ shouts here and there, which don’t really advance anyone.
Our support systems and value creation and capturing mechanisms haven’t really evolved beyond primitive levels, so we still have a very long way to go.
Nice piece.