1 The Art NFTs and Their Marketplaces Lanqing Du Michelle Kimy Jinwook Lee

2025-04-30 0 0 1.45MB 6 页 10玖币
侵权投诉
1
The Art NFTs and Their Marketplaces
Lanqing Du, Michelle Kim, Jinwook Lee
Drexel University, Philadelphia, PA 19104, USA
Horace Mann School, Bronx, NY 10471, USA
Email: jl3539@drexel.edu (Corresponding Author: Jinwook Lee)
Abstract—Non-Fungible Tokens (NFTs) are crypto assets with
a unique digital identifier for ownership, powered by blockchain
technology. Technically speaking, anything digital could be
minted and sold as an NFT, which provides proof of ownership
and authenticity of a digital file. For this reason, it helps us
distinguish between the originals and their copies, making it
possible to trade them. This paper focuses on art NFTs that
change how artists can sell their products. The art NFTs also
change how the art trade market works since NFT technology
cuts out the middleman. Recently, the utility of NFTs has become
an essential issue in the NFT ecosystem, which refers to the
owners’ usefulness, profitability, and benefits. Using recent major
art NFT marketplace datasets, we summarize and interpret the
current market trends and patterns in a way that brings insight
into the future art market. Numerical examples are presented.
Index Terms—Non-Fungible Tokens (NFTs), Digital Art, NFT
Marketplace, Machine Learning, Principal Component Analysis
I. INTRODUCTION
A. NFTs and the Art Industry
In April, 2022, Sotheby’s sold a small receipt paper of the
1959 project called “Zone of Empty Space” by Yves Klein,
the French conceptual artist, for $1.2 million. It was a part of
the ledger where Klein recorded all sales and resales of the
1959 artwork ( [11]). More than a half-century later, thanks
to blockchain technology and NFTs, this ledger-keeping has
become an essential part of the art industry. ( [1], [2])
The phrase “NFT art,” we believe, is not the most accurate
phrase. NFT itself is not the art, it is simply a technology
that increases the utility of the art, by functioning as a proof
and traceability of the ownership. ( [3]–[5]) Thus, throughout
the rest of the paper, we will be using the phrase “art NFT”
as opposed to “NFT art.” There are three types of art NFT:
digital art (stand-alone), PFP (generative art), and Phygital art
(linking physical art with the NFT). ( [6]–[8]) The very brief
history of NFTs begins with digital art and its pioneer Kevin
McCoy. ( [9], [10]) In 2014 McCoy and Anil Dash created
the first stand-alone NFT, Quantum.( [12]) Prior to Quantum,
digital artworks were “fungible,” meaning that there were
multiples of the same artwork. Following McCoy, artists like
Mike Winkelmann, better known as Beeple, and companies
like Larva Labs, creator of CryptoPunks, took center stage on
the NFT market.
The launch of CryptoPunks marked the creation of a new
category of art NFT: PFP (Profile Pic) created using a tech-
nology called generative art. PFP art including CryptoPunks,
Bored Ape Yacht Club (BAYC), Doodles, and recently Clone
X doubled as a form of art and a status symbol on various
social media platforms. In the last couple of years, BAYC be-
came widely popular within the NFT community and beyond,
with the most expensive piece, #8817, selling for $3.4 million
in 2021. ( [13]) Yuga Labs, the creator of BAYC, have fully
experimented with and implemented business strategy models
like token-gating. Token-gating is a way of adding value to
an NFT by granting the holder exclusive access to content,
community, events, and physical products, in addition to the
digital token. ( [14]) BAYC was also the first art that granted
full commercial rights to the Intellectual Property (IP) to its
holders, who were now able to commercialize their Bored
Apes. Unsurprisingly, popularity factors for BAYC include
commercial rights and exclusive access to spin-off collections
like Bored Ape Kennel Club (BAKC) and Mutant Ape Yacht
Club (MAYC) both of which have high resale value as well
access to off-line events including the annual Ape Fest.
If commerce platforms like Nifty Gateway and Superway
became well-known for their curation of digital art, mar-
ketplaces like OpenSea became highly successful from their
listing of PFP art, such as the BAYC. While digital art centers
around individual artists, like McCoy and Beeple, PFP centers
around companies, Yuga Labs and Larva Labs being the most
notable, where they curate communities, introduce roadmaps
and coordinate on and offline events and launches.
There are not yet any notable cases of the third type of
art NFT, “Phygital” art (Physical and Digital art). Yet, by
linking NFT (digital proof of authenticity) with physical art,
it will revolutionize both the NFT and the traditional art
market. The prime challenge is finding an optimal method of
linking the two; Quick Response (QR) codes, Radio Frequency
Identification (RFID), and Near Field Communication (NFC)
are a few ways.
Art NFT is changing the landscape of the art market and
its players including, the artist, buyer, and platforms (galleries,
online commerce platform). While in the traditional art market,
galleries and auctions and their agents functioned as an inter-
mediary between the artist, the artwork, and the customers,
the emergence of NFTs has bridged the gap between the three.
Now the artist or the creator can list and mint their artwork
directly on an online platform (with little to no commission
fee) and oftentimes connect directly with their buyers. Though
there are still technical, ethical, and sometimes legal issues
associated with art NFT, it will shift the dynamic between the
artist and the buyer, the role of the intermediaries (auctions,
galleries, online platforms), and most notably the trends and
value surrounding art.
arXiv:2210.14942v1 [q-fin.ST] 23 Oct 2022
2
Fig. 1. Heatmap visualization: bar height on the number of sales; colormap on secondary and primary sales difference.
B. Data Collection and Our Key Findings
Our data collection is as follows: 11 marketplaces
datasets from NonFungible.com ( [15]): ArtBlocks, Azuki,
BoredApeYachtClub, CloneX, CoolCats, CrypToadz, CryptoP-
unks, Meebits, TheSandbox, VeeFriends, and WorldofWoman.
This is daily NFT marketplace datasets with one-year multi-
variate time series datasets from 09/13/2021 to 09/12/2022.
Each dataset contains the following ten features: (1) the num-
ber of sales (transactions), (2) total sales (USD), (3) average
sales (USD), (4) the number of active market wallets, (5)
primary sales, (6) secondary sales, (7) primary sales (USD),
(8) secondary sales (USD), (9) unique buyers, and (10) unique
sellers. Note that null values, <0.05% of the entire dataset,
are deleted in the given dataset.
As shown in Fig. 1, 2, and 3, the majority of the number
of sales (i.e., transactions) comes from secondary sales
(approx. 90.16%), which means that the primary sales
are less frequent than the secondary sales.
It appears that primary sales are more frequently observed
in ArtBlocks (approx. 30.33%). While in some specific
time periods, primary sales are more often than secondary
ones for Coolcats and VeeFriends.
It also appears that there are seasonal patterns as regards
buyer activities. As shown in Fig. 1 and 3, we observed
some seasonal patterns for the number of sales and the
number of unique buyers.
Speaking of similarity in the trends and patterns for
the selected marketplaces, CryptoPunks appears to have
fewer but more significant transactions (as depicted in Fig
1 and 4). In comparison, ArtBlocks has more transactions
with smaller trading sizes.
In Table I, such art NFT marketplaces are selected based
on “All-time NFT Collection Rankings by Sales Volume”
from Cryptoslam ( [16]) subject to the data available in the
NonFungible.com database.
TABLE I
NFT COLLECTION RANKINGS BY SALES VOLUME
Collection Sales Buyers Txns
Axie Infinity $4,087M 1,785,424 1,785,424
Bored Ape Yaght Club $2,416M 11,977 32,465
CryptoPunks $2,371M 6,033 22,157
Mutant Ape Yacht Club $1,731M 23,513 51,111
Art Blocks $1,305M 33,113 181,667
Otherdeed $1,047M 25,854 58,319
NBA TopShot $1,030M 445,999 21,695,225
II. MACHINE LEARNING ON THE NFT MARKETPLACE
DATASETS
A. Unsupervised Learning: PCA
The principal components of the data matrix are its singular
vectors. Using the SVD (Singular Value Decomposition),
Principal Component Analysis (PCA) finds the largest singular
values to extract the most important information from the
data (with the largest variance) by solving perpendicular
least squares (i.e., orthogonal regression). PCA, in machine
learning, is unsupervised learning. PCA is typically carried
out to generate the principal components (PCs), i.e., singular
vectors, to summarize a large dataset with correlated variables
(see, e.g., [16]). Below, (1) describes the correlation between
10 features for the art NFT marketplace BAYC, with F1
standing for the first feature (number of sales) and F10 for
the last feature (unique sellers) as introduced in section I-B.
摘要:

1TheArtNFTsandTheirMarketplacesLanqingDu,MichelleKimy,JinwookLeeDrexelUniversity,Philadelphia,PA19104,USAyHoraceMannSchool,Bronx,NY10471,USAEmail:jl3539@drexel.edu(CorrespondingAuthor:JinwookLee)Abstract—Non-FungibleTokens(NFTs)arecryptoassetswithauniquedigitalidentierforownership,poweredbyblock...

展开>> 收起<<
1 The Art NFTs and Their Marketplaces Lanqing Du Michelle Kimy Jinwook Lee.pdf

共6页,预览2页

还剩页未读, 继续阅读

声明:本站为文档C2C交易模式,即用户上传的文档直接被用户下载,本站只是中间服务平台,本站所有文档下载所得的收益归上传人(含作者)所有。玖贝云文库仅提供信息存储空间,仅对用户上传内容的表现方式做保护处理,对上载内容本身不做任何修改或编辑。若文档所含内容侵犯了您的版权或隐私,请立即通知玖贝云文库,我们立即给予删除!
分类:图书资源 价格:10玖币 属性:6 页 大小:1.45MB 格式:PDF 时间:2025-04-30

开通VIP享超值会员特权

  • 多端同步记录
  • 高速下载文档
  • 免费文档工具
  • 分享文档赚钱
  • 每日登录抽奖
  • 优质衍生服务
/ 6
客服
关注