Pictures of bored apes and lazy lions, according to critics, aren’t exactly the height of artistic achievement.
In early January, Wikipedia editors voted to exclude NFTs from their list of “most expensive artworks by living artists”. Even though the internet encyclopedia is far from being the center of modern art, many people turn to it as a global source of truth, and their vote effectively declared that NFTs weren’t works of art.
Why Are Most NFTs So Unattractive?
In the following sections of this article, we’ll discuss these issues as well as a lot more.
With the help of blockchain technology, users can now access a variety of assets, including tokens and NFTs. Accordingly, non-fungible tokens are issued on various blockchain networks, allowing holders to own digital art for the first time in human history.
The scarcity of NFTs is one of their primary characteristics. Projects release their own NFTs in small quantities in an effort to make them as rare as possible. This makes it possible for NFT holders to hold really scarce assets and be part of an “art” collection that is exclusive and to which few people get access.
Similar to how it is with traditional cryptocurrency tokens, scarcity frequently determines the price. A million-piece NFT collection is not the same as a collection of just 1,000 NFTs. People who own one of the 1,000 NFTs believe that their NFT is worth much more than the 1 million NFTs as a whole.
Scarcity is one of the reasons why NFTs are expensive
Why are the majority of NFTs ugly if scarcity is a major factor? The creation of smaller collections with an emphasis on quality rather than quantity by artists might take longer, though. As a result, projects release a number of NFTs to the market in an effort to sell them as quickly as possible.
The value of art and technology in today’s world allows some artists and investors to pay very high prices for smaller NFT collections. The development of projects, though, might take longer as a result. In a market where most collections have close to 10,000 NFTs, concentrating on high-quality art might put them in an uncompetitive position.
Brand New Technology
It is also evident that NFTs are a relatively new technology that is only now beginning to spread globally. Every new technology begins with hype and bubbles, including cryptocurrencies and blockchain.
Let’s not forget that hundreds of Initial Coin Offerings (ICOs) were starting to appear almost daily in 2017 as Bitcoin approached the $20,000 mark. These subpar projects eventually vanished, but the same thing might be happening to NFTs.
Supply And Demand
Supply and demand are crucial factors in the NFT market, just like they are in other sectors of the economy. People buy the most well-liked NFTs with the expectation that their value will increase over time, which is one of the causes of the irrational price behavior we have seen in NFTs.
This occurred during the ICO expansion in 2017 and the beginning of 2018, and it is similar to those events. Investors were paying too much for various tokens in anticipation of a rise in value similar to that seen with Bitcoin, Ethereum, or other digital currencies. However, this did not occur, and a lot of investors wound up losing their money.
In this case, investors do not ask “why most NFTs are ugly?.” Simply put, they invest in the NFTs they believe will present them with the best future selling opportunities. Additionally, the cost of these works of art rises due to the limited collections and high demand for some of the most well-known NFTs.
We have previously seen how investors and consumers FOMO-buy these tokens when trading cryptocurrencies. Also, the NFT market experiences this in a similar manner. Some investors think they won’t be able to purchase NFTs from a specific collection in the future at a lower cost. Because of this, they buy these NFTs at any price in the hope that their value will rise further.
As you can see, it is not crucial what kind of NFT is used in these situations. The NFT market heavily depends on supply and demand.
NFTs Are Minted In Collections
NFTs are produced in collections, as we have already covered in this blog post. These collections consist of various non-fungible tokens that have a comparable design and goal. 10,000 NFTs may be present in some collections while 100,000 may be present in others. With the exception of the fact that we are discussing NFTs rather than crypto tokens, this is comparable to the token supply of a cryptocurrency project.
NFTs are produced, but how? Non-fungible art tokens are created in what way? It gets much more interesting from here on out. The fact that NFTs are produced using straightforward visual layers is another factor that contributes to the general opinion that NFTs are ugly. The rarity of a particular type of NFT is greatly influenced by these visual layers.
Rarity And Traits
A specific art collection’s NFT token’s rarity component will be determined by traits. These traits allude to various traits and features of the NFTs individually. These characteristics include the Head, Eyes, Mouth, Jewelry, Clothes, Background, and Skin. But there are a lot more items that could be on the list.
The NFT project could create a variety of tokens thanks to these characteristics. The value of these NFTs will rise if they possess more uncommon characteristics. There may be a very low chance (below 10%) of generating some particular types of traits. When these rare qualities are combined, a very valuable NFT token with a high price could result.
The Community Behind NFTs
The fact that NFTs are not just tokens that are bought and sold on the open market but also a fantastic way to build a community is one of their most impressive features. It’s true that some of the most well-known NFT projects on the market, like BAYC or CryptoPunks, have drawn sizable communities.
Large and active communities, as we are already aware, have an obvious effect on the market, which over time may have an impact on NFT prices. Engaged communities increase the price of NFT collections by purchasing new NFTs, promoting various activities, and enabling NFT projects to reach a wider audience.
Communities therefore obviously have an effect on the NFT market. It is better for the NFT project if the community is larger. We can see that just because NFTs are stunning works of art, the market does not grow to include them. Instead, they are supported by fans who enjoy participating in community activities and in projects connected to the NFT collection in question.
The use of NFTs in art has been discussed. Typically, they depict pictures, images, and works of art. Non-fungible tokens have numerous other applications, though. A brand-new category of the blockchain-based project known as Play-to-Earn (P2E) games began to take off in 2021.
In order to draw players and develop in-game economies, these P2E games have utilized and depended on NFTs. NFTs are created on top of a blockchain network and will never be destroyed, which is one of their most intriguing features. You are essentially the true owner of that particular NFT.
Due to this, in-game NFTs for crypto P2E games have been developed and are connected to various items (such as swords, shields, potions, etc.). Each of these products was designed as an NFT that could be purchased and sold in various open markets.
The growth of the NFT market is being facilitated by games as an alternative to crypto art. In this case, the question “why are NFTs ugly?” might not apply. Due to their usability in P2E games, some in-game items may be extremely valuable to users. Instead of concentrating on over-hyped (and occasionally ugly) art projects in the future, we might see new use cases for NFTs.
Why Are Common NFTs So Ugly?
Indeed, if you are asking “why are NFTs ugly?” then this might be related to the fact that we are seeing the expansion of a brand-new technology. We may eventually witness the publication of higher caliber artwork on top of various blockchain networks as a result of the growth of other NFT projects.
The NFT market will also need more time to develop and see projects take advantage of the advantages provided by non-fungible tokens. Funding, rules, and the involvement of other businesses that might alter market trends are additional factors that should be taken into account.
We have up until now observed plain and unattractive artwork being sold on various online markets. We can anticipate regular releases of higher-quality NFTs as businesses begin to experiment with this technology.
Overall, the appeal of digital art collections and NFTs are subjective and based on the creators’ own feelings and opinions. But why are the majority of highly expensive NFTs made with subpar designs (like crypto punks) or even ugly?
We have attempted to elucidate the causes of the high cost of such NFTs in this article. Additionally, by delving into the innovation and singularity of this recent development in the cryptocurrency market.