Gurr Johns: Perspectives sees our specialists share their views, opinions, and insights about the global art world.
In the last of this series, Alessandro Fiorotto (Managing Director, Gurr Johns Capital) shares his thoughts on why you shouldn’t turn your next child into an NFT, what’s changing in the art finance world, and the new specialty lender about to arrive on the scene…
* NFTs continue to be headline news. Are they the future of art collecting? Should I mint an NFT of my child? Would you lend against it?
Alessandro Fiorotto (A.F) All good questions, to which I would have to answer no. We are living in a new age of art investment and, as the industry continues to evolve, we’ve seen a heightened interest in the digitalization of the art market and NFTs in particular, but only time will demonstrate their longevity and staying power. Personally, now that the world is opening back up, I believe that many collectors are enjoying returning to galleries and auction houses and seeing artworks hanging in front of them again, rather than just sharing them on an iPad.
In terms of lending against digital art and NFTs, as with any volatile asset, it is complex, but not impossible. There’s no doubt that the trading of digital assets in the form of an NFT on traditional fine art auction platforms has helped add credence to NFT-linked art as an asset class. NFTs’ ability to pinpoint authenticity is critical for buyers and sellers, which coupled with the ease of transfer and payment with cryptocurrency, makes them an attractive asset for new-age investors obsessed with liquidity.
Whether the NFT is a transformer or disruptor is open to debate. Ultimately, NFTs are just another form of digital art (which has been around for a long time) uniquely tied to a blockchain, and just as blockchain will change some industries more than others, it will also leave its mark on the art world.