Anita Shah, Senior Associate at law firm McDermott Will & Emery, said:
“The NFT art market has been burgeoning over the last 18 months, with a certain breed of artwork riding the wave: the somewhat unimaginative visuals of the popular 2D avatars and the brightly-coloured animal cartoons that make up the eye-wateringly expensive collections of Bored Ape Yacht Club, Cryptopunks and the like. This genre in particular is causing some to question whether there is in fact any real artistic ambition in the digital art space, and whether the over saturation of the market is leading to a lack of artistic creativity. This comes at a time when the value of NFT collectibles has plunged, and large segments of the market have begun to deteriorate as part of the wider cryptocurrency slump, raising questions about the longevity of NFTs.
However, while the hype of the NFT art market may be stabilizing, the value and the versatility of the underlying technology continues to hold power, as creators remain attracted to exploring the possibilities for collaborative and innovative work in multiple industries, and NFTs continue to be used in novel and creative ways. Last month, British fashion designer Roksanda, created a shoppable NFT from her collection at London Fashion Week, the first time an NFT has been purchasable on a luxury brand’s website in pounds rather than cryptocurrencies. Interior designers are also now digitally exchanging concepts with potential buyers and using NFTs to ensure authenticity when pitching ideas to customers, pushing the boundaries of design imagination while removing the barriers of productions and showroom costs. Further, NFTs are being used to raise war funds in Ukraine, with the Ukrainian government just announcing the launch of an NFT to mark the history of the Russian invasion, as a means to raise money for military equipment and media efforts.”