We obtain daily data of Bitcoin, Ethereum, Travala token, Kemacoin and Guider to investigate the implications of history's most famous five heists on travel and tourism. We find a statistically significant spillover effect in the cryptocurrency and tourism token markets with a limited impact on travel and tourism companies' stock prices. We also find evidence of herding behaviour and observe that overall market quality deteriorated because of the heists. To deal with these negative implications, we propose implementing tools based on artificial intelligence algorithms, emphasising the two leading cryptocurrencies – Bitcoin and Ethereum. Tracking major crypto wallets and ‘whales’ can help regulators identify potential hacks and mitigate systemic risk caused by spillovers in cryptocurrency markets.
Saying no to speculation in the crypto market during NFT trades is a call for prudence, diligence, and a commitment to responsible investing. Embracing these principles will contribute to a more sustainable and credible ecosystem, allowing the underlying blockchain technology to fulfill its potential beyond short-term market fluctuations. Speculation in the cryptocurrency market, particularly during NFT (Non-Fungible Token) trades, demands a cautious and informed approach. The crypto market is renowned for its inherent volatility, a characteristic accentuated by the NFT space. Prices can experience sudden and unpredictable fluctuations, making it imperative for investors to exercise prudence and avoid succumbing to the lure of speculation. NFTs derive their value from factors such as perceived scarcity, demand, and cultural significance rather than traditional fundamentals. This lack of intrinsic value makes it challenging for investors to make well-informed decisions based on solid analysis. Furthermore, the rapid evolution of the crypto space means that NFTs may lack a substantial history of price data, adding an additional layer of complexity to the assessment of their value.
While over-inflation of value has long been a part of the art world's business model, Non- fungible tokens(NFT) may provide new options for small artists. One of the advantages of NFTs is that royalties are always paid to the creator, even if the value of the artwork or music increases when it is resold. Let’s start to imagine a world without the money-grabbing middlemen of corporate labels in the music industry, where artists make the majority of sales. It is also a life-changing tool for creators of meme culture content. For example, monetizing an art movement that your parents would most likely dismiss as "wasting time." Everyone welcomes a new era of monetized and digitized comedy. The NFT makes waves, whether you love them or despise them, whether you want to buy them or add your own music and art. Too many people are on the lookout for a chance to get rich quickly or an impending disaster that could happen in the early stages of the concept. This paper discusses problems with NFTs, and why they’re not long-term problems. Researcher discuss factors limiting the mass adoption of NFTs related to the technology itself and market conditions.
Blockchain and NFTs (Non-Fungible Tokens) are two closely related concepts that have gained significant attention in recent years, particularly in the realm of digital assets and decentralized technologies. Blockchain and NFTs (Non-Fungible Tokens) share a symbiotic relationship, with blockchain serving as the underlying technology that empowers NFTs to function as unique digital assets. NFTs, on the other hand, leverage blockchain technology to address the longstanding challenge of proving ownership and authenticity in the digital realm. By representing unique assets on the blockchain, NFTs solve the problem of digital scarcity, enabling artists, musicians, game developers, and creators to tokenize and sell their digital creations as limited-edition, one-of-a-kind items. The indivisibility of NFTs ensures that each token represents a whole and unique piece of content, be it digital art, music, videos, or virtual real estate. This paper is reviewing the world famous NFT that are traded on popular Blockchain on world famous NFT market place such as Opensea and YoungParrot. Several international brands have their NFT listed on such NFT market places.
Desde su espectacular aparición en el sistema del arte en 2021, los non-fungible tokens o NFT han acaparado la atención de investigadores del campo de la historia y el mercado del arte, de las ciencias sociales, así como de todos los agentes del sistema del arte. Este artículo estudia las relaciones con los NFT de un conjunto de artistas visuales españoles participantes en la feria ARCO Madrid en 2020, es decir, la última edición antes de su irrupción en 2021 en el mercado del arte. Así, mediante la elaboración de una encuesta online realizada en 2023, se analiza el impacto de la llegada de esta tecnología en su práctica artística. Los resultados aportan información tanto cualitativa como cuantitativa que demuestra la aún escasa penetración de los NFT en 2023 entre el conjunto de artistas seleccionado, al tiempo que explora las principales barreras que dificultan la incorporación a su trabajo.
Non Fungible Tokens (NFTs) are blockchain-based unique digital assets defining ownership deeds. They can characterize various different objects such as collectible, art, and in-game items. In general, NFTs are encoded by blockchains smart contracts, and they are traded via cryptocurrencies. Their price and investors attention on them has remarkably increased especially in 2021, making them promising alternative class of investment. Surprisingly, predicting their prices has only recently started to be analyzed systematically.
Open access
Blockchain Technology Applications and Security
Art History and Market Analysis
Generative Adversarial Networks and Image Synthesis
Teknolojinin gelişmesiyle birlikte pek çok alanda yenilikler yapılmıştır. Bu alanlardan biri de sanattır. Genel anlayışla sanat, galeri gibi kapalı mekanlarda, sınırlı kişilere yakından bakma imkanı sunarken, teknolojinin sağladığı imkanlar dahilinde sanatın oluşum ve dolaşım alanı genişlemiş, dünyanın bir ucundan diğer ucuna sanat eserine erişim sağlamak mümkün hale gelmiştir. Günümüzde popüler bir konu haline gelen, hızla yükselen, sanatı tuvalden sanal ortama taşıyan sanat alanlarından biri de NFT (Non-Fungible Token)’dir. NFT'ler, benzersiz ve değişmez dijital varlıklardır. Bilgisayar destekli teknolojinin kullanılması yeni bir olgu olmamakla beraber, sanat piyasasındaki geleneksel dinamikleri yıkan bir yapıya sahip olan NFT, dijital sanatın önemli ortamlarından biri haline gelmiştir. Özellikle sanat, oyun ve diğer sektörlerde sıkça kullanılmakta olan NFT’ler, sanatçılara birçok avantaj sunmaktadır. Araştırmada, NFT ve içeriğindeki; blokzincir teknolojisi, ethereum, metaverse (sanal evren) gibi kavramlar tanıtılmaya çalışılmıştır. Blokzincir teknolojisiyle birbirine bağlanan zincirlerin, bilgileri nasıl koruduğu, aynı zamanda metaverse ile birlikte gelecekteki sanatçılar ve izleyiciler arasındaki etkileşimi geliştirebilecek sanal dünyaları keşfetmeyi nasıl başarabileceklerinden bahsedilmiştir. Bu bağlamda NFT’nin önemli sanatçılarından olan, eserlerinde yapay zeka ve dijital manipülasyon tekniklerini kullanan Ender Diril’in, dijital sanat ve NFT’ye yaklaşımı, eserleri üzerinden NFT dünyası ortaya koyulmaya çalışılmıştır.
The digital revolution has launched myriad new technologies in the field of art and cultural heritage law, including digital art, NFTs (non-fungible tokens), artificial intelligence (AI)-generated art, virtual reality and reality augmentation, online viewing rooms and auctions, holograms, immersive experiences, and more. As a $67.8 billion industry, the art market is a global driver of innovation, international collaboration, and national economies, given its cross-border transactions. However, given the extremely rapid development of these new technologies, regulators have struggled to keep pace and implement legal measures that are fit for purpose in this field. Limited oversight has resulted in several claims that have the potential to change the legal landscape. For instance, claims over the theft/misappropriation of NFTs and the related fraud and money laundering that may ensue, as well as a recent class action copyright infringement suit against the creators of a popular AI algorithm and infringement claims over immersive installation and light technologies, demonstrate how new ways of thinking are required to assess cases involving digital property (distinguished from other types of non-tangible property). Moreover, the US Supreme Court has issued a landmark ruling on fair use within the copyright context, which will be relied upon in the future to determine whether (and to what extent) the appropriation of existing copyrighted material is permitted. This includes both the digital use of physical artworks and the use of born-digital works. Although jurisprudential decisions are made on a case-by-case basis, factual patterns involving online media, digital art, and related technologies could serve as guidance for legislators and other decision-makers when considering what limits should be imposed on Web 3.0. This article will focus on recent US-based claims and regulations and dovetail with existing art market regulations in this jurisdiction (e.g., anti-money-laundering statutes) to determine their impact on new technologies, whether directly or indirectly. Finally, the article highlights ongoing trends and preoccupations to provide an overview of the shifting legal landscape.
We analyse the pattern of daily price of a collection of artistic non-fungible tokens, namely, the "Bored Ape Yacht Club" (BAYC) collectibles, over the first year of their life, from May 2021 to May 2022. Taking a time-series analysis approach, we consider the daily average price, and other variants of daily price index, derived from hedonic regression model. Aesthetic features of the collectibles do matter. At the same time, the price series emerge to be non-stationary, integrated of order 1, with their first difference exhibiting heteroscedasticity and autoregressive variance. Models of ARCH/GARCH class are appropriate to describe the dynamics. Though the price series of BAYC collectibles and their daily movements share many characteristics with the series of financial assets, they do not appear to be related to financial variables from both the crypto- and the real (i.e., not crypto) world.
This study delves into the burgeoning intersection of NFTs and the museum sector. It examines the transformative potential of NFTs in redefining art curation, ownership, and accessibility. The paper presents a comprehensive background on the rise of NFTs, their technological underpinnings, and their cultural and economic impact on museums. A Decision Matrix Mechanism is proposed to assist museums in evaluating the strategic fit of NFT initiatives. The paper discusses the multifaceted factors influencing NFT adoption, including technological readiness, legal frameworks, ethical considerations, and market dynamics. It underscores the importance of a nuanced approach that aligns with each museum's mission and the evolving digital landscape.
In this paper, the author aims to analyse the types of crimes committed in cyberspace against creators and owners of NFT. Non-fungible tokens have been favored by the art world (also known as the crypto-art market) for a few years now. They attract numerous digital art creators and cryptocurrency investors. The token is recorded in a blockchain and is used to certify authenticity and ownership. Therefore, the art world is particularly interested in this solution. However, as practice shows, NFT isn’t flawless, and cybercriminals exploit its flaws. Using methods known from typical cybercrimes, they modify their modus operandi accordingly to the crypto-art market practice. In this paper, the author describes examples of breaches of copyright and intellectual property law, as well as examples of the forgery of NFT. In addition, other crimes, such as fraud and theft of NFT, are described. Types of those crimes are, e.g., bypass security systems, phishing, and installation of malware
Purpose: This case study explores the evolving landscape of digital art and non-fungible tokens (NFTs) through the journey of Niklas Elmehed, a renowned freelance artist responsible for the Nobel Laureate portraits. It delves into the challenges and opportunities presented by NFTs, touching upon topics such as data privacy, generative AI, and the changing nature of visual communication. Pedagogical Objective: The case aims to help learners understand the impact of NFTs on the art world, the cognitive theory of visual communication, and the influence of generative AI. It prompts critical thinking about the future of digital art, personal branding, and strategic choices for artists in the digital era. Case Positioning and Setting: This case is suitable for undergraduate and graduate courses in art, digital marketing, and entrepreneurship. It can be used to facilitate discussions on NFT adoption, the intersection of technology and art, and the implications for artists and collectors. The case protagonist is based in Stockholm, Sweden and the timeline is from 1997 to 2023.
Non-fungible tokens (NFTs) are decentralized digital tokens to represent the unique ownership of items. Recently, NFTs have been gaining popularity and at the same time bringing up issues, such as scams, racism, and sexism. Decentralization, a key attribute of NFT, contributes to some of the issues that are easier to regulate under centralized schemes, which are intentionally left out of the NFT marketplace. In this work, we delved into this centralization-decentralization dilemma in the NFT space through mixed quantitative and qualitative methods. Centralization-decentralization dilemma is the dilemma caused by the conflict between the slogan of decentralization and the interests of stakeholders. We first analyzed over 30,000 NFT-related tweets to obtain a high-level understanding of stakeholders' concerns in the NFT space. We then interviewed 15 NFT stakeholders (both creators and collectors) to obtain their in-depth insights into these concerns and potential solutions. Our findings identify concerning issues among users: financial scams, counterfeit NFTs, hacking, and unethical NFTs. We further reflected on the centralization-decentralization dilemma drawing upon the perspectives of the stakeholders in the interviews. Finally, we gave some inferences to solve the centralization-decentralization dilemma in the NFT market and thought about the future of NFT and decentralization.
2021 witnessed US retaining its leading position in the global art market and increasing its sales to over $28.0 billion. Behind such significant growth lies a comprehensive legal framework across most sectors in the art industry, including acquiring, selling, collecting, exhibiting, lending, repatriating, exporting and importing. The US law imposes regulations on art sales to increase the transparency of the art transactions and provide adequate remedies for aggrieved art sellers and buyers. The federal government has also established various acts to protect the domestic cultural patrimony and works with different countries to protect against illicit importation of cultural property. This chapter intends to provide a high-level understanding of the vibrant and engaging issues in the art industry, including the topic of non-fungible tokens, which blurs the line between physical art world and the virtual one, but does not bewilder the regulators.
Abstract This paper provides a review of the development of the non‐fungible tokens (NFTs) market, with a particular focus on its pricing determinants, its current applications, and its future opportunities. We investigate the current state of the NFT markets and highlight the perception and expectations of investors toward these products. We summarize and compare the financial and econometric models that have been used in the literature for the pricing of non‐fungible tokens with a special focus on their predictive performance. We design a framework that can help to understand the price formation of NFTs. We further aim to shed light on the value‐creating determinants of NFTs in order to better understand investors’ behavior on the blockchain.
Aggregated trading volume in February 2023 across the leading six NFT marketplaces totalled USD 1.89 billion. This reflects a continuing positive trajectory, marked by a 91.9% month-on-month (MoM) growth from January 2023, where NFT trading volume amounted to USD 987.9 million. This study conducts a systematic review and textual analysis of industry and academic articles on NFTs primarily related to Accounting, Finance, and Information Systems where the NFT is treated as a tradable digital asset. The sample period spans 2012 to 30 June 2023, using an initial set of 5549 and a final set of 146 articles. In addition, the authors develop an NFT valuation framework, using Scopus bibliometrics data and public domain materials, that can aid in the fair valuation of NFTs and understanding their accounting implications. We further examine the accounting implications of NFTs in terms of international accounting standards, fair value recognition, taxation, auditing, and the metaverse. NFTs have the potential to become a cross-technology and cross-field topic, attracting interest from auditors, accountants, financial institutions, accounting professional bodies, regulators, governments, and investors.
Blockchain, a revolutionary technology that has attracted a great deal of interest in recent years, is transforming various industries and redefining the way we think about data, transactions and trust. It began as a secure environment for online commerce and has extended its scope to other areas such as healthcare systems, e-voting, supply chain, digital assets and telecommunications. Its key features are decentralization (no need for a Trusted Third Party (TTP)), immutability, transparency and the implementation of smart contracts. Theseareused to automate and execute agreements between blockchain users. They are also used to create unique digital assets (such as artworks, real estate, collectibles, etc.) by representing them as Non-Fungible Tokens (NFTs). In this paper, we present a smart contracts application that allows the creation of an NFT, that represents an artwork, with the possibility of trading this NFT on a marketplace, selling it and transferring the ownership from the seller to the buyer, as well as cancelling transactions and reimbursing buyers with paid amounts
Durante 2020 y 2021 asistimos al boom de un nuevo mercado artístico de la mano de los de NFTs (Non Fungible Tokens), con ventas millonarias, así como la aparición de un enorme número de plataformas y un debate mediático en torno al arte digital nunca antes visto. Este estudio trata de analizar la situación de las imágenes y los creadores asociados a la nueva tecnología blockchain. Para ello se pretende retomar y adaptar a la situación cultural y artística actual las ideas de Byung Chul Han sobre la sociedad del cansancio y la sociedad de la transparencia. El objetivo final es aclarar si el llamado como cryptoarte es la consecuencia cultural de las características de ese tipo de sociedad radiografíada por Han. Si así fuera, podría hablarse de un tipo de arte como reflejo de la propia aceleración y automatización de los procesos de producción, distribución y consumo de bienes. También de la conformación de una “estética del cansancio” derivada en gran parte del hiperempleo sufrido por los creativos y por la inflación de la imagen mediática y artística. En las nuevas circunstancias ultraliberales de la cultura, las obras de arte terminan por reducir su impacto a lo económico, convertidas en activo financiero de rápida digestión y que conlleva la anulación de toda posibilidad de una experiencia estética pausada, reflexiva y/o crítica.
The non-fungible tokens trading of digital content works, as an emerging business model, has rapidly developed while also posing challenges to current copyright protection. The NFT infringement incidents in recent years have exposed many issues, such as lack of government regulation, imperfect copyright protection mechanisms, and illegal profits from service platforms. Considering the collusive behavior during the NFT minting process, this study uses evolutionary game theory to model a game composed of three populations: digital content creators; NFT service platforms; and government regulatory agencies. We derived and analyzed the replication dynamics of the game to determine the evolutionary stability strategy. In addition, combined with numerical simulations, we also analyzed the impact of individual factors on the stability of system evolution. This study identifies that the incentives and fines set by the government must be above a certain threshold in order for game results to develop toward an ideal equilibrium state, and the government can try to improve the efficiency of obtaining and updating market information and set dynamic punishment and reward mechanisms based on this. This study also found that excessive rewards are not conducive to the government fulfilling its own regulatory responsibilities. In this regard, the government can use information technology to reduce the cost of regulation, thereby partially offsetting the costs brought about by incentive mechanisms. In addition, the government can also enhance the governance participation of platforms and creators to improve the robustness of digital copyright protection by strengthening media construction and cultivating public copyright awareness. This study helps to understand the complex relationship between NFT service platforms, digital content creators, and government regulatory authorities and proves the practical meaning of countermeasures and suggestions for improving government digital copyright regulations.
Blockchain technology and Non Fungible Tokens (NFTs) have been a hot topic for several years now, as proven by the multitude of brands launching their own NFT projects. In this paper, we will consider some popular fashion NFT collections, namely: adidas Originals Into the Metaverse, AMBUSH OFFI-CIAL POW! REBOOT, Azuki x AMBUSH IKZ, CULT & RAIN - The Genesis Collection, Dolce& Gabbana: DGFamily, Dolce& Gabbana: DGFamily Glass Box, Chito x Givenchy NFT, MUGLER - We Are All Angel, RTFKT x Nike Dunk Genesis CRYPTOKICK, Prada Timecapsule. First, we will analyze and examine if we can find salient characteristics of transactions pertaining to these collections. Second, we will attempt to propose a first taxonomy of fashion NFT transactions. From the results, we can state that most transactions occur at the NFT launch and that they belong to the Memberships category. Secondly, the results show that we can propose a taxonomy of four transaction groups or clusters. The findings can have practical implications for both researchers and practitioners, indeed the results: (i) can be a stepping stone for future research on (fashion) NFTs, (ii) can help practitioners analyze transactions using our preliminary taxonomy.
On 11 March 2021, amidst the lingering grip of the COVID-19 pandemic, the art world witnessed an extraordinary event. Christie’s, the renowned auction house, hosted a groundbreaking auction counting just one lot: a Non-Fungible Token (NFT)—a digital asset that had been generating buzz in recent times. The astounding price fetched by the NFT sent shockwaves through the art world. While the 255-year-old auction house was known for selling unique assets, its auctioning of an NFT was surprising as Christie’s online marketplace was not on the blockchain, contrarily to NFT platforms such as Opensea, Nifty Gateway, etc. The resounding success, however, of its historic auction was followed by a surge of NFT off-chain sales at Christie’s, Sotheby’s, and Phillips. While extensive research has been done on the trade of NFTs on the blockchain, little research exists on the trade of NFTs at public auction houses. Based on more than two years’ tracking of NFTs auctioned at major auction houses, our research identifies three phases in the development of the trade and provides valuable insights into the unique factors that contributed to the growth of NFTs at public auctions between the springs of 2021 and 2023.
Vivian Ziemke, Benjamin Estermann, Roger Wattenhofer, Ye Wang
In the evolving landscape of digital art, Non-Fungible Tokens (NFTs) have emerged as a groundbreaking platform, bridging the realms of art and technology. NFTs serve as the foundational framework that has revolutionized the market for digital art, enabling artists to showcase and monetize their creations in unprecedented ways. NFTs combine metadata stored on the blockchain with off-chain data, such as images, to create a novel form of digital ownership. It is not fully understood how these factors come together to determine NFT prices. In this study, we analyze both on-chain and off-chain data of NFT collections trading on OpenSea to understand what influences NFT pricing. Our results show that while text and image data of the NFTs can be used to explain price variations within collections, the extracted features do not generalize to new, unseen collections. Furthermore, we find that an NFT collection's trading volume often relates to its online presence, like social media followers and website traffic.
Abstract Significant interest in non-fungible tokens (NFTs) as a means of changing the music industry has motivated this investigation. First, a comprehensive literature review (of strengths, weaknesses, opportunities and threats [SWOT]) provides a summary of the benefits and costs associated with the deployment of blockchain- and NFT-based transactions in the music industry. Considerable effort has been devoted to identifying the economic, legal and regulatory benefits and drawbacks of applying the new technology. NFTs may be the final realisation of the digital universe, bringing exclusivity and revenues to the creator economy and the chance to revalue creative work. The technology's drawbacks may exceed its advantages. Navigation within the crypto regulatory landscape is still deemed as exploring uncharted territory. It is further complicated by the fact that it is largely uncertain which legal framework may apply due to the lack of jurisdiction-identifying criteria. Second, quantitative research is conducted as an online survey directed towards two research questions: 1) What is the extent of familiarity and knowledge related to NFTs, as well as perspectives on NFTs as potential disruptors? 2) What is the extent of music creators’ perception of NFT-related opportunities and NFT integration into the music industry? Twenty EU countries were selected for the survey. Respondents answered twenty questions focused largely on demographics, their awareness of NFTs and their perceived potential for disrupting the music industry. It is too early to say whether NFTs will be utilised successfully, especially by independent musicians. The arguments in favour of NFTs are compelling, but there are issues regarding the levels of awareness and competence required for implementation.