Climate friendly or not, NFTs could open up new vistas to Hong Kong artists
- While novel technologies will have their flaws, NFTs can spur Hong Kong-based artists to experiment beyond the confines of urban spaces
- If such an unorthodox business model proves viable, NFTs might represent a big leap towards the perfect combination of art, finance and blockchain technology
Hong Kong artists frequently struggle to be seen due to limited gallery spaces. Should they start looking into this new way to market their work?
Since the pandemic, business models have been evolving. NFTs have sent the art world into a frenzy. In one month this year, according to a Time report, more than US$200 million was spent on NFT-based artwork, memes and GIFs.
Like bitcoin, NFTs are built on blockchain, which acts as a fraud-resistant decentralised ledger. But while bitcoin is fungible, NFTs are unique digital assets, hence “non-fungible”.
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On the surface, the whole concept reeks of a bubble: investors paying millions for works that can often be viewed and shared online for free. Many speculative collectors see NFTs as an alternative investment instrument, no different from any other financial product.
There is a case to be made for NFTs, however. Due in part to the pervasiveness of internet piracy, many digital creations grab the attention of the younger generation, but generate low returns compared to traditional art. With tamper-resistant ownership made possible by the NFT technology, digital art can now be sold for real value. In cases of inflated value, investors are paying not just for artists’ labour, but also for bragging rights as owners of one-of-a-kind pixels.
Before this development, the value of digital art was nebulous, largely because products were freely replicable. Traditional art holds value because it exists in unique physical form. It explains why the Picasso painting, Woman Sitting Near a Window (Marie-Therese), was sold for a staggering US$103.4 million this month after only 19 minutes of bidding.
Even if NFTs are a bubble, what do Hong Kong artists have to lose by trying to enter uncharted territory? The wider public is receptive. In the West, new art lovers are seeking out new communities. NFTs can democratise the experience of art and its ownership. The technology is opening pathways for diverse voices such as Boykins, a black female digital artist.
How exactly did the Nyan Cat meme sell for US$590,000?
Perhaps reflecting how unconventional and provocative NFT art is, the market also has its dark side. For example, there are questions over how current copyright laws interact with this emerging technology. Then there are environmental concerns.
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Still, NFTs could open up exciting vistas to struggling Hong Kong artists. While novel technologies will have their flaws, we should focus on how we can capitalise on the NFT technology.
Nothing new and unique comes of clinging on to the mental grid of the past. Perhaps NFTs can spur Hong Kong-based artists on to experiment beyond the confines of urban spaces. If such an unorthodox business model proves viable, NFTs might represent a big leap towards the perfect combination of art, finance and blockchain technology.
NFTs may serve to empower new talent struggling to be seen. At the very least, Hong Kong artists must carry out a considered appraisal of NFTs, rather than shun them altogether. In its purest form, the NFT technology can elevate the work of artists in our digitising world, and in the process, reward artists for labour that has long been overlooked by the market.
Adam Au is the head of legal at a Hong Kong-based health care group