Why I'm so Bullish on NFT Art

in #leofinance5 months ago

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Anyone that follows me on Twitter or keeps in touch on Discord has probably noticed that I've been getting very involved with the new Crypto Art community that I'm helping to build with some of my friends from PAL. I want to preface everything that I'm about to say with the usual "this is not financial advice" disclaimer, because honestly anything can happen and everyone's situation is different. I do however want to explain some of the reasoning of why I'm so bullish on this project and why I think it brings tremendous value to HIVE.

The Crypto Art scene has been growing and getting bigger on ETH for quite a while now. I noticed when it branched out into some other chains and I though Pixeos was a pretty cool project, but I noticed while these other platforms on other blockchains are gaining in popularity and finding success, it felt like the entire business model would just work better on a blockchain like HIVE.


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ETH is plagued by ridiculous gas fees and is in my opinion going to be unsustainable unless ETH 2.0 is successful and comes soon. EOS has similar problems and while I had high hopes for the blockchain, they quickly died shortly after the mainnet launch when I saw how the governance was operating and the RAM and Compute requirements were being manipulated. Hive doesn't have these problems which is why it's a logical choice for a blockchain to host this business model.

The lack of transaction fees and the three second block times allow for artists to keep more of their money, post their content quicker, and it allows art collectors and speculators an environment where they can process their buys and sells quickly all without having to worry about the price drastically increasing due to unreliable gas fees or transactions taking extremely long times.


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Recently, I have been seeing more and more absurdly high amounts of ETH being paid for art on different sites, just recently someone paid $100,000 worth of ETH for a single piece of artwork as you can see above. There are plenty of other examples out there, but we can suffice it to say that it's not uncommon for buyers to spend thousands of dollars on NFT artwork on a daily basis. There are literally millions of dollars being spent on NFTs each month.

To sum it all up, HIVE has better infrastructure without the extortionate resource requirements that other blockchains are plagued with. The convenience factor of operating on the HIVE blockchain for near-instant transactions without fees makes for a better user experience and less predatory business model. Currently the NFTs on showroom are drastically undervalued by comparison, and while I think some of this is due to the current undervaluation of the HIVE token, some of it is definitely related to the fact the site is just getting started and still picking up momentum.

For the last year, I've been exclusively buying crypto preparing for the next bull market, but over the last month I have been investing pretty heavily into art NFTs as well. I feel that they have huge resale potential and the value will go up as more of the Crypto Art community realizes the benefits of using HIVE. Everyone has to make their own decisions, but I know this a project that I want to support and invest in, not only due to the potential financial benefits for myself, but also because of the potential benefit to the whole HIVE ecosystem.


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I agree with you but there needs to be a slightly better UX for users not coming from Hive. Having to Swap the tokens to use in NFT is additional step newbies stumble upon and this is probably what is stopping for explosive growth. There should be some "automatic" option where you introduce your visa or send crypto and automatically converts it to Swap-Hive and funds your account. Newbies should not have to hassle with all that process.

That's actually in the works (swapping other crypto automatically.) As far as accepting fiat, it hasn't really been discussed at length, but personally I'm not really far it. It opens us up to things like chargebacks and potential regulatory issues that I'm not interested in dealing with. Hopefully the auto swaps will be ready soon, but I agree it is something that we need to get done asap.

Agree with all. Autoswaps should be the priority and also buying with other crypto not only Hive.

The other thing I'd like the team to consider seriously:
Most of the buyers and collectors are on ETH. If NFT Showroom allowed collectors to decide where to send their NFT, like "send to Ethereum" the buyers would exponentially increase. I know there are royalty reasons this is not done, but Splinterlands does it right...they allow the collectors to decide which blockchain they want there NFTs on. Collectors won't come to Hive bc they are not sure how immutable it is, especially since the images themselves are not hosted in a decentralized way. These issues still need to be understood and researched by the team.

We have discussed it and we aren't ruling it out for the future, but the problem with minting and sending to ETH for example is the cost to mint is going to go up anywhere from 15x to infinity based on the gas fees. There's going to be a lot of things to figure out, but we already charge so low to mint that even offering that option is going to require passing on those minting fees to the artists. We just don't charge enough to even consider covering those costs.

Thank you for being a supporter of the arts, your investment will yield dividends and is helping artists around the world thrive. Keep Rocking friend!

I think long term, NFT Showroom is going to be huge, we have some growing to do, but we'll get there.

Sort of nice to be able to blog while you're selling. You'll be talking to folks who already have hive bucks in their wallets. I'd like to talk art with a whale who has ridiculous amount of FAT, steem/hive bucks. oppps, is using the word "Steem" allowed here?

It doesn't bother me, but STEEM is dead to me since the takeover and then stealing funds from user wallets. We won't have anything to do with STEEM. I gotta get back to work, but feel free to join the Discord if you wanna chat with other artists/team members.
https://discord.gg/JudHKF

I also see a lot of potential for Art NFTs and I think Hive as a social blockchain and zero fee transactions is the perfect match.

I think once the NFTs can be moved across other chains and more chains can come in and buy these NFT art it will explode! I agree with your sentiments it’s just all about opening it up to more investors

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That is something that is being discussed. One of the problems is we're building on HIVE to escape the problems of ETH. Making our NFTs have cross compatibility with something like OpenSea is totally possible and we aren't ruling it out, but it's going to bring back problems like artists paying exorbitant gas fees, having ridiculous wait times, and potential tech support issues with cross chain hiccups. It's not something we'll pursue lightly.

Mine is going to sky rocket 😆

I learned things on opensea and prepared to create a store there and were shocked on the gas fees there. never did follow through. don't have gas

Check out NFT Showroom, it costs 5 HIVE to mint 1 piece of art and if you're going to issue multiple editions it's 1 HIVE per additional piece beyond the first. We made it explicitly to create a much more affordable option that ETH. We also take a smaller commission (10%) and it runs on HIVE, so it's obviously much quicker.

I'm trying to decide if I should have one edition or 5 editions. If I had one edition, I'm worried that the buyer may not resell my art and I may never get any secondary royalties at all, ever. 5 editions increases my chance of secondary sales but it ain't rare enough. help. You said, "we". Are you part of the developers?

I'm not the guy coding it, but part of the team building the site and designing it, yes. From what I've seen, some artists do well with multiple editions and selling for lower prices, while others only ever make 1 edition and sell for higher prices. It takes some experimentation to find your market and demand level.

If people aren't buying a 1 of 1, you might have to try doing multiple editions cheaper the next time. It definitely takes some experimentation. Honestly I wouldn't worry about secondary sales first and foremost though, you gotta get it sold in the first place for that to ever become an issue. I tend to think of anything secondary as a happy bonus.

Some of my art are or looks traditional like an old school type. Maybe I should sell like an old school art gallery. I'm certain that some buyer would want to be the only one to own a single edition. For now, I'm going to issue single editions like it's been done that way for thousands of years. It might be expensive but someone might enjoy owning the only piece. I may never see a secondary sale if the buyer holds it to himself. thats the risk I take but it would be like selling the only physical artwork. Hilter stole famous artworks and I think some were never recovered. I worry my art may never be recovered like if the buyer dies or forget the secret password to resell, the secondarys

It could happen, but compared to traditional galleries that usually take 50% of sales, have to deal with inventory, rotation, insurance, etc... the cost of dealing with NFTs is minimal on HIVE. On ETH you have a lot of gas fees, but it really doesn't hurt to try minting a piece and see how it goes. If it doesn't sell and you decide to go the physical gallery route, just burn your token, you're out a whole 5 hive (less than $1 right now) and it is removed.

What happens to secondaries when tokens are burned?

Who gets the 5 hive per piece ? the nftshowroom founders or boards? Or is it some minimum to create a blockchain?

It goes to the team to cover development/infrastructure costs as well as covering our Hive-Engine expenses. It also has the added benefit of making it not free to spam stuff 😁

umm. maybe they can put something in the Jackpot or distribute something to the artists to encourage them to use/return to your site. BAE-blockchainartexchange does that. I think they have their own internal BAE-dollars, sort sort of rewards.

And we thank you for this! Without buyers, artists cannot survive!
I love NFT Showroom. I mint on there more because ETH gas fees really do suck! The only thing I gotta say though, Rarible gives out RARI tokens when I buy or sell on there, and that incentive is pretty powerful. I've made way more on Rarible actually because of this.