We asked WizardX a few questions about the Launch of fractions for Miss Al Simpson's "BITCOIN BITCH (DOUBLE DIGITS)".
NFTX: What was your first NFT? How did you get into the NFT space?
I bought some Cryptokitties shortly after launch but never accumulated a large collection of them. I was then drawn back into the NFT space when GodsUnchained packs were being sold. At some point in late 2019 I realized that artwork from SuperRare and KnownOrigin were being displayed in these amazing galleries in Cryptovoxels. I suddenly realized how big this was going to be and jumped in collecting and minting artwork.
NFTX: What interests you in fractions and how do you see fractions used in the future?
I'm mostly excited by the ability of fractions to offer a pricing mechanism for artwork that updates with a frequency dictated by trading volume. It will also allow people to diversify holdings into valuable higher-priced artwork; but do so in a way that allows relatively smaller cost purchases. This allows for the inclusion of a much greater set of participants who are generally spending smaller amounts of ETH. It opens up ownership of key works of art beyond the whales.
NFTX: Tell us a bit more about the fractions you’re launching on NIFTEX.
I am starting with the launch of BITCOIN BITCH (DOUBLE DIGITS) by Miss Al Simpson. This is one of my favorites of her works and is part of her Bitcoin Bitch series that she has minted across SuperRare, KnownOrigin and her OpenSea contract. I also have an earlier Bitcoin Bitch mint on SuperRare (the very first as I understand) that I am considering for a future release on NIFTEX.
NFTX: How did you arrive at the launch valuation for Bitcoin Bitch Double Digits?
The pricing of any artwork, collectible or NFT is a difficult process. It should of course be dictated by free market demand and reflect what other people are willing to pay. Ultimately, the value of any collectible is simply what a highest bidder would be willing to pay. This becomes difficult to estimate for low volume items and especially 1-of-1 collectibles. Price can be estimated often from sales of similar collectibles. In the case of Bitcoin Bitch Double Digits, a comparison to similar NFTs would include other artwork sold on SuperRare and other artwork by Miss Al Simpson. In the valuation of BBDD, I considered the following: [rank ordered list of highest SuperRare sales], [position on most viewed on SuperRare], [recent pricing and interest in Miss Al Simpson artwork] and [price premium for being the 1st SuperRare art offered as fractions]. The top 50 highest price sales of SuperRare NFTs have fallen in the range of 10-75 ETH. At a 1.25-2 ETH range (recent @missalsimpson sales) there would be risk of someone simply buying all fractions. I strongly wanted to avoid this scenario as I believe a wide distribution of the tokens will help establish Niftex as a new cryptoart phenomenon for future launches. A 3-4x multiple should help avoid this scenario of an immediate buyout. I was therefore considering an 8 ETH valuation, but then added a 25% premium for it being the 1st work of art sharded in this manner. The number 10 also has obvious significance to this particular work of art. At the time of writing this places the valuation at roughly $2,500. A quick search for the highest priced traditional works of art sold at auction reminds one of the many orders of magnitude in between these two figures. I offer no prediction at all on future value; but it is interesting sometimes to be reminded of the true range in prices that have been paid for collectible works of art.
NFTX: To wrap up, what rare NFT would you want to own a fraction of and why?
KING Cricket Soup by XCOPY. It is one of the earlier mints in the short history so far of cryptoart on Ethereum. It also was possibly the first work of art that really caught my attention when I started observing the scene and those who know my artwork have seen how I have incorporated the imagery in some of my own work. The response is always positive in terms of collectors wanting anything that includes Cricket Soup. Something about the concept draws the attention of collectors. It also is one of those unique items that has always been priced high by the owner and is somewhat unobtainable. That sort of high valued collectible is perfect for sharding and fractional ownership.
Thanks for hanging out with us, WizardX! Join WizardX and many other collectors in creating & trading NFT fractions on NIFTEX.com. The future is fractional!