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The best explanation to my understanding for huge purchases is just self-dealing to pump prices.

by jl2718 5y ago

onlyrealcuzzo 5y ago
Exactly. People have this idea that because NFTs are selling for $10M some moron must think that particular NFT is worth $10M and have spent $10M to buy it - presumably thinking it will be worth even more in the future and s/he can sell for a profit. What an idiot, most people think... However, it could just be that people are buying NFTs from themselves (like CryptoKitties) for massive sums, to attract the interest of get-rich-quick retail investors to spend ~$100 dollars on NFTs - just in case they're suddenly worth $10M a piece in a month. FOMO. It's not like retail investors investing millions of dollars into NFTs. They don't have millions of dollars in the first place!
dharmab 5y ago
This doesn't hold up under scrutiny. Look at the Christie's beeple auction- the guy was a normal middle class person going through a reputable dealer.
- th0ma5 5y ago
  Many people who love this sort of thing say that it was a stunt. Do you have any examples of other normal middle class persons' art at Christie's?
  - carlhancock757 5y ago
    That buyer most definitely wasn't some normal middle class person. He was someone well known in the NFT space who also runs an investment fund related to NFT's. Details here: https://www.ledgerinsights.com/christies-beeple-69-million-nft-art-buyer/ https://www.ledgerinsights.com/christies-beeple-69-million-n... I'm not aware of any crazy NFT auctions that have been purchased by "normal middle class" people. They've all been people heavily involved in crypto. That goes for the losing bidders also. The person who was the second highest bidder in that auction is also heavily involved in the crypto space.
- carlhancock757 5y ago
  The Christie's beeple auction was a normal middle class person? If you are referring to the $69million Beeple auction held by Christie's that buyer was Metakoven. Who is if the financial backer of an NFT investment fund called Metapurse. So he absolutely wasn't some normal middle class person.
  - dharmab 5y ago
    I'm referring to the artist, who is a middle class stay at home dad. He was interviewed by NPR recently. https://www.npr.org/2021/03/12/976513031/the-69-million-jpeg https://www.npr.org/2021/03/12/976513031/the-69-million-jpeg
    - jl2718 5y ago
      Is there any proof that he got the vast majority of the proceeds immediately as encumbered cash? Maybe this is just my cynicism, but I would expect that he would receive partner shares in the fund that purchased his work. Probably the same with Masterworks, or any other art scam pumping on Facebook.
failwhaleshark 5y ago
Shilling-bidding in a comparables marketplace. Gotcha. I should bring crime and decay to the neighborhood, buy my neighbors' houses out, and then sell my own house to myself for $10 million. Who wants to invest? Now offering NFTs as stock. :B

The best explanation to my understanding for huge purchases is just self-dealing to pump prices.

by jl2718 5y ago

The best explanation to my understanding for huge purchases is just self-dealing to pump prices.

Exactly. People have this idea that because NFTs are selling for $10M some moron must think that particular NFT is worth $10M and have spent $10M to buy it - presumably thinking it will be worth even more in the future and s/he can sell for a profit. What an idiot, most people think... However, it could just be that people are buying NFTs from themselves (like CryptoKitties) for massive sums, to attract the interest of get-rich-quick retail investors to spend ~$100 dollars on NFTs - just in case they're suddenly worth $10M a piece in a month. FOMO. It's not like retail investors investing millions of dollars into NFTs. They don't have millions of dollars in the first place!

dharmab 5y ago

This doesn't hold up under scrutiny. Look at the Christie's beeple auction- the guy was a normal middle class person going through a reputable dealer.

th0ma5 5y ago
Many people who love this sort of thing say that it was a stunt. Do you have any examples of other normal middle class persons' art at Christie's?
- carlhancock757 5y ago
  That buyer most definitely wasn't some normal middle class person. He was someone well known in the NFT space who also runs an investment fund related to NFT's. Details here: https://www.ledgerinsights.com/christies-beeple-69-million-nft-art-buyer/ https://www.ledgerinsights.com/christies-beeple-69-million-n... I'm not aware of any crazy NFT auctions that have been purchased by "normal middle class" people. They've all been people heavily involved in crypto. That goes for the losing bidders also. The person who was the second highest bidder in that auction is also heavily involved in the crypto space.
carlhancock757 5y ago
The Christie's beeple auction was a normal middle class person? If you are referring to the $69million Beeple auction held by Christie's that buyer was Metakoven. Who is if the financial backer of an NFT investment fund called Metapurse. So he absolutely wasn't some normal middle class person.
- dharmab 5y ago
  I'm referring to the artist, who is a middle class stay at home dad. He was interviewed by NPR recently. https://www.npr.org/2021/03/12/976513031/the-69-million-jpeg https://www.npr.org/2021/03/12/976513031/the-69-million-jpeg
  - jl2718 5y ago
    Is there any proof that he got the vast majority of the proceeds immediately as encumbered cash? Maybe this is just my cynicism, but I would expect that he would receive partner shares in the fund that purchased his work. Probably the same with Masterworks, or any other art scam pumping on Facebook.

failwhaleshark 5y ago

Shilling-bidding in a comparables marketplace. Gotcha. I should bring crime and decay to the neighborhood, buy my neighbors' houses out, and then sell my own house to myself for $10 million. Who wants to invest? Now offering NFTs as stock. :B