NFT Secondary Sales Distribution, The Good, The Bad, and The Ugly


The secondary sales distribution of NFT (Non-Fungible Token) is a current hot issue.  This marketing strategy is being used by several WAXP artists to increase their presence and fan base.  Join me as we examine the positives, negatives, and ugly aspects of NFT secondary sales distribution in the hopes that you will obtain a better knowledge of what occurs behind the scenes. 

Let’s start off with the Bad. 

As we all know, the NFT marketplace lacks regulation and oversight which can lead to unethical behavior such as pump-and-dump schemes that exploit both the artist and buyer.  What happens when a WAX whale decides to buy half of your drop and then resells the NFTs at inflated prices?  Economic inequality.  The focus on financial gains can overshadow the cultural and artistic value of the works themselves.  This can lead to a perception that NFTs are disconnected from the traditional art world.  You do not want your investors to make a quick profit rather than appreciate your artwork.  Not to mention the artist is left with only a portion of the profits from secondary sales, and less resale royalties.  This is not good for your project in the long term.

Now let’s talk about the Good.

Artists will undoubtedly collect royalties from secondary markets since they decide what portion of the sales price to take when their work is resold.  A short marketing strategy to try and increase market presence is to share the royalties with customers.  Similar to a coupon or rebate, secondary sales distribution is used to motivate the customer.  By doing this, the artist is able to secure funds for a larger project they may be working on.  Despite the intense controversy surrounding this, secondary sales distribution increases NFT's value.  It has the potential to forge a closer community since it entails customers getting more invested in the success of the artist, forging a closer connection, and increasing transparency.   Due to the longer HODL created throughout the community, prices stabilize and experience less volatility.  Additionally, I have observed that more partnerships are being formed, bringing with them more culture and innovative ideas.  It can be motivating for artists to see how other artists achieve success. 

All of this has the potential to change and broaden how we interpret art and culture in the digital age, which may be advantageous OR disadvantageous for creators, collectors, and the larger creative community.  What do you think about this?  Please share your thoughts in the comment section below.

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dAPPerGents
dAPPerGents

🎮Gamers. On and off the blockchain 🎨Fans of art/NFT's https://twitter.com/dAPP3rgents


NFT Secondary Sales Distribution, The Good & Bad
NFT Secondary Sales Distribution, The Good & Bad

The secondary sales distribution of NFT (Non-Fungible Token) is a current hot issue. This marketing strategy is being used by several WAXP artists to increase their presence and fan base. Join me as we examine the positives, negatives, and ugly aspects of NFT secondary sales distribution in the hopes that you will obtain a better knowledge of what occurs behind the scenes.

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