Digital artist Pak has sold a single-pixel NFT for US$1.3 million (AU$1.67 million) through an auction at Sotheby’s, with the buyer, Eric Young, being part of a new-generation of art collectors that are betting big on NFTs.
Young — who has most of his and his wife’s savings in cryptocurrencies — told Bloomberg that investing in NFTs seemed intuitive for him, saying, “I understand how this ascribes provenance to a piece on a public ledger, and there’s nothing else I need to understand”.
A pixel is a coloured dot, the smallest unit of a screen. Generally, hundreds or thousands of pixels come together to make an image.
Young already owned roughly US$1 million in assorted NFTs before purchasing the US$1.3 million token, which certifies him as the owner of a single pixel.
Get daily business news.
The latest stories, funding information, and expert advice. Free to sign up.
If you’re reading this and thinking that NFTs might be getting slightly overpriced, you’re not alone.
In fact, a new fashion brand called ‘Overpriced.™’ with the tagline ‘F*ck you(r) money’, has just sold a limited run of NFT-backed hoodies for US$26,000 a pop.
Backed up on the blockchain, if your hoodie gets lost or stolen, they will issue you a new physical item — provided you’re the owner of the NFT.
They’ve been designed with a certain kind of buyer in mind, with the hoodie having the same aesthetic as a computer tower built by a PC gamer, or a Monster Energy drink.
As one of the company founders James Zwadlo puts it, “We are a group of artists looking to create art-powered crypto fashion that aims to challenge the conceptions of what luxury fashion is”.
Performance art, a cruel joke, or the next fashion frontier? Either way, they’ve pocketed upwards of a quarter million by printing a scannable code on a hoodie and calling it an NFT.
Need a reminder on what NFTs actually are?
This SmartCompany Plus piece explains how they work, and whether you can offer them through your business.