99% of NFT art projects doomed to fail – ITWeb | Candle Made Easy

While many people hope to make loads of real money from their non-fungible token (NFT) artworks, the more likely 99% of projects around the world will fail and be worthless in the long run.

This is one of the key takeaways from a presentation by Tyrone Rubin, CEO and Founder of MetaLabsAfrica, speaking yesterday at the Hybrid Summit “Creating Meaning in the Metaverse” organized by the Red and Yellow Creative School of Business.

MetaLabsAfrica supports African brands in the development and research of virtual reality and augmented reality experiences in the metaverse.

During a presentation titled “Designing in the metaverse: Currency, commercials and compliance,” Rubin emphasized that the South African metaverse and NFT market is expected to gain popularity this year as more local companies dabble in immersive technologies, to achieve operational and revenue improvements.

Discussing the vital interoperable relationship between NFTs and the Metaverse, he explained that the Metaverse is a virtual universe where users in different parts of the world can interact with each other and with virtual beings in a computer-generated environment.

NFTs, he added, are secure digital files stored on the blockchain system that validate ownership of property within the metaverse. Ownership can be in the form of an avatar, artwork, contract or image, etc.

Tyrone Rubin, CEO and Founder of MetaLabsAfrica.

Tyrone Rubin, CEO and Founder of MetaLabsAfrica.

He highlighted the benefits and pitfalls of investing in NFTs, which have grown in popularity over the past year.

“NFT art collections are designed left, right and center, 99% of which are likely to fail if you are an individual. This is because it’s just as much as a person posting a new YouTube video – it probably won’t go as viral as you might expect. Just like a musician would release a music video, the chances of the video going viral are slim.”

Various NFT trading marketplaces — such as OpenSea, Momint, Magic Eden, and Solana — allow artists to sell, trade, and auction their art as NFTs.

A failed NFT art project is typically a collection whose trading volume is declining due to various external and internal factors, Rubin noted.

“If you put an NFT collection on OpenSea and don’t have a large community or following, don’t think you’re going to automatically make money from it. Please understand that you have to follow many steps,” he asserted.

“If you look at Spotify’s long-term recording, 99% of the revenue on the platform comes from the top 20 artists. Taylor Swift, for example, doesn’t survive off Spotify, but she makes a ton of money from it. On the other hand, there are a number of South African artists who cannot survive without Spotify, so long recording is very important.”

Earlier this year, NFT expert Gary Vaynerchuk predicted that 99% of NFT ventures would fail and be worthless due to the various challenges faced by developers and companies venturing into the market, which is still in its infancy .

According to crypto and NFT research firm Nansen, one in three NFT projects has little or no trading activity and ultimately ends up as a dead collection.

According to the NFT website NFTs Guru, NFT projects fail for a variety of reasons, including:

  • Launching an NFT before it has a chance to get off the ground.
  • Failure to achieve community growth and engagement.
  • Getting involved in NFT scams.
  • An NFT project that crashes shortly after getting too much attention.

Despite the many pitfalls, Rubin explained that there are still plenty of reasons people should consider owning NFTs, adding that on the plus side, they can represent multiple streams of income.

“Eventually everyone will have an NFT. Players can use NFT technology to play and earn money in Axie Infinity, The Sandbox and Decentraland. NFT ticketing also has more value than art and that’s a no-brainer.”

Among the people who have made money from their NFT art collections is digital artist Beeple, who sold Everydays: The First 5,000 Days for $69.3 million. The World of Women Collection marketplace and community are selling their cheapest artworks for a staggering R500,000, commented Rubin.

The events and contracting industries have also benefited significantly from the use of NFTs, he added.

“The events market has benefited tremendously from the use of NFT tickets for events such as music concerts and sports games. Because everything is embedded in the blockchain, tracking down ownership is easy. Benefits of NFT ticketing include anti-fraud and fast production.”

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