Experts warn NFT art bubble risks dangers - "90% of the collections minted today are totally useless and meaningless": experts warn of the NFT art bubble as many works will never be revalued.

The digital art market is experiencing a dizzying spike during 2021. Only in the first half of the year have moved about 2,100 million euros in works in NFT (non-fungible token), a format that gives the works exclusivity and guarantee of authenticity.

On the biggest NFT exchange platforms, a multitude of artists with no age to drive are turning gold with their designs. This is the case of Benyamin Ahmed, 12 years old, who has earned more than 135,000 euros in just 9 hours using designs with a free use license.

The case of Ahmed is paradigmatic of one of the problems that beset this environment that combines the artistic world with the digital: speculation. Is this kid, like many others, a genius or the figures of his sales respond simply to the interest of getting a cut on the part of some buyers?

"Probably many NFT have been sold that lack value, because they do not have the endorsement of any professional," says Alejandro García, artistic director of Art Army, the first NFT market in Spain, on the rise of these digital assets.

Experts warn NFT art bubble risks dangers

Art Army's approaches move away from that speculative character that is permeating the NFT art world and offer the vision of "professionals of the artistic medium", such as gallery owners, critics or curators.

"We have a project model that has nothing to do with these speculative processes, we do not believe in short-term investments or in the whole atmosphere that has been generated around the NFT phenomenon, that false Gold", he says.

For García, "perhaps the novelty of technology has made many people believe, as in any bubble, that their investment is smarter than others simply by doing it before".

The results are being disastrous for some of the speculators of the NFT market, who are buying some works at a golden price and then reselling them more expensive, something that many do not get.

As Bloomberg recently pointed out in an article, in the last 3 months some 1.9 million digital assets had been sold on the largest exchange platform, OpenSea, but only a quarter of them were sold again.

Experts warn NFT art bubble risks dangers

"Perhaps 90% of the collections minted today are totally useless and meaningless," explained Gauthier Zuppinger, co-founder of the collectible tracking platform NFT nonfungible.com According to their figures, most of the NFT market is concentrated in works of high artistic and economic value.

In recent months there have been millions of sales by renowned artists such as Beeple, which in March achieved a historic sale of a work in NFT for 69 million dollars through the auction house Christie's.

But NFT's networks and platforms are plagued by successful projects that handle millions of dollars and fill ordinary mortals with wonder. This same month the Bored Ape Yacht Club project sold 101 NFT for just over 20 million euros, this time through an auction in Sothebys.

In addition to these "boring monkeys," other major series being traded on major platforms are ArtBlocks and CryptoPunks, according to nonfungible.com.

The latter are a kind of avatars developed on the Ethereum blockchain of which there are 10,000 different, all of them unique and exclusive thanks to their NFT format.

Experts warn NFT art bubble risks dangers

The one in the image, for example, cost at first just under 140,000 dollars and today is worth almost 1 million, after having gone through 6 different "hands" in just half a year. And it's not the most expensive.

"99% percent is about being in the right circle and having the right information at the right time, "Zuppinger said in reference to NFT marketing, where, in his opinion,"you live with that constant frustration that you missed the opportunity to earn $ 1 billion."

For García, the problem in the NFT market is that the main platforms, such as SupeRare, Foundation.app and Open Sea itself, "are a product promoted by the financial or technological industry" and "are far from the art market"and, above all," from criticism that supports the artistic legitimacy of the pieces".

Experts warn NFT art bubble risks dangers

The Art Army's art manager considers that" a bubble could have been produced " around the NFT market, but throws a spear in favor of the technological opportunity that the reliability of blockchains and non-fungible tokens represent for the art world.

"They present an innovative model that for me is revolutionary, since it establishes relationships between artists who enhance their talent, a beneficial communion between colleagues, far from past quarrels, and a prodigious opportunity for the dissemination and promotion of collecting," he says.

Experts warn NFT art bubble risks dangers

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A hamster has been trading cryptocurrencies in a cage ready to buy and sell tokens automatically since June and is currently outperforming the S & P 500

A hamster in Germany is redefining the belief of the author of a random walk down Wall Street, Burton Malkiel, that a blindfolded monkey throwing darts at a quote list in the newspaper could do just as well as a human investment professional.

The animal named Mr. Goxx, has been independently trading —and live streaming— a portfolio of various cryptocurrencies since June 12, and so far his performance has been impressive.

Until last Friday, his portfolio had risen almost 24%, according to the Twitter feed @mrgoxx which documents the daily performance and all the trades made by the hamster. Mr. Goxx's performance outperforms bitcoin and the S&P 500 over the same time period.

Mr. Goxx's owner built the "Goxx Box," an office with cryptography attached to his larger house that gives the hamster the ability to perform various exercises that then execute specific operations with cryptocurrencies. The hamster can enter his office when he wants to make some kind of exchange.

The main cryptocurrencies currently owned by the hamster include tron, ripple, cardano and ether.

Goxx's portfolio was financed with 330 euros, according to a Protos report. Mr. Goxx's unidentified caretaker and business partner told Protos that the hamster's exchanges are automatically set in increments of 20 euros.

"There are plans to give Mr. Goxx more control and allow him to intentionally choose the amount of his purchase if interest in his channel continues to grow," the business partner tells Protos.

Mr Goxx has so far generated a profit of EUR 77 from Friday afternoon. Its portfolio peaked at almost 495 euros in mid-September, when its performance increased by almost 50% in less than 3 months, according to performance data compiled by Protos. But since then, the recent cryptocurrency sell-off has made a dent in the hamster's profits.

However, a win is a win, and Goxx is likely to understand that. "Mr. Goxx is happy to see some of his investments finally pay off," the business partner told Protos.