The NFT Collector
Welcome to the NFT collector South Africa.
Our mission for NFT South Africa is to showcase some of the NFTs we collect and to feature local South African NFT artists.
We aim to assist people like South African interior designers, and other NFT collectors to find NFTS that are a good investment and may offer a healthy ROI in the near future.
NFT South Africa is still relatively new, and the NFT marketplace itself is also relatively new with a real spike only starting in April 2021.
So what are NFTS?
Last year saw the meteoric rise of NFTs (non-fungible tokens)—so much so, Collins Dictionary named NFT its word of the year for 2021. The growth of cryptocurrencies, together with the COVID-19 pandemic, paved the way for a surge in digital collecting. Non-fungible tokens (NFTs) seem to have exploded this past year. From art and music to tacos and toilet paper, these digital assets are selling like 17th-century exotic Dutch tulips—some for millions of dollars.
But are NFTs worth the money—or the hype? Some experts say they’re a bubble poised to pop, like the dotcom craze or Beanie Babies. Others NFT collector believe NFTs are here to stay, and that they will change investing forever.
Many savvy crypto investors have become aware that you can now actually own a digital image, and then potentially sell it for a profit. This class of image is called an NFT, which stands for non-fungible token. A fungible item, like a R100 note, can be traded one for another. A non-fungible item, like a Monet painting, is unique and irreplaceable. An NFT is a digital item on a blockchain that is assigned a singular and unique ID. This means that the provenance of the image can be traced, differentiating the original from all subsequent copies – like a digital simulation of a Monet.
NFTs have been around since about 2014, but it is only this year that they have burst into the mainstream after several NFT images and animations sold for absurd amounts of money. Christie’s record sale of Beeple’s digital artwork Everydays — The First 5000 Days (2021) for $69.3 million in February 2021 put NFTs on the front page of newspapers worldwide. And more headlines emerged with the sale of a set of nine of Larva Labs’s Cryptopunks for $17 million and a selection of works by 18-year-old Seattle-based artist FEWOCiOUS for $2.2 million.
Other auction houses followed suit, driving further record sales by other native crypto artists including Pak, Mad Dog Jones, Sarah Zucker, XCOPY, Matt Kane, and Rhea Meyers. Yet the majority of NFT sales occurred through dedicated NFT marketplaces such as OpenSea, SuperRare, Rarible, Sologenic, Nifty Gateway, MakersPlace, KnownOrigin, Foundation, and others.
In 2022 the NFT market is expected to reach as much as $35 billion in net sales volume. Based on its current growth rate, reputable sources forecast the NFT market to grow to about $80 billion by 2025. Most NFTs fall into 1 of 6 different categories: art, collectibles, gaming, metaverse, utility, and proof of ownership.
South Africans are less likely to own non-fungible tokens (NFTs) compared to their global counterparts, with only 8.3% of surveyed South African internet users currently owning NFTs.
This is one of the key findings of research conducted by fintech firm Finder, based on an analysis of the NFT uptake in 20 markets across the globe.
Finder’s survey of more than 28 000 internet users over 18 years of age across the globe reveals the number of surveyed South Africans who own NFTs is just below the global average of 11.7%. It’s still very early days for NFTs in South Africa. Just about a third of surveyed South Africans currently know what NFTs are and the market expects adoption to grow with awareness. Men are currently the biggest adopters, with 10.5% of men saying they own NFTs, compared to 6.3% of women.
This puts SA at 12th place out of 20 countries, falling behind Nigeria, United Arab Emirates (UAE), and Vietnam, but ahead of Argentina, Singapore and Canada.
Just as the early collectors of modern art would gather at cafes and bars in Montparnasse, NFT collectors congregate on platforms such as Twitter and Discord to meet artists and analyze the field.
The majority of NFT collectors are “return on investment” NFT collectors. Unlike 20th-century art collectors, who sought rare and singular works, these collectors want to own something that is inherently replicable. They are searching for the type of image that will spread very widely online, an image that could go viral. The more eyes that see it, the bigger the profile the artist gets, the more people want the image or similar ones. These collectors essentially trade in vibe and clout.
To get a good return on investment, in other words, I try to make the NFT artists they purchase into NFT influencers.
As creators continue to innovate on the applications and formats of NFTs, a dedicated community of collectors continues to expand across the globe. To gain insight on what’s driving collectors to acquire NFTs be sure to sign up for our newsletter and visit our featured NFT artist posts.
In SA, the first independent South African NFT platform − Momint − made its debut in April, launching a website and app. The platform sells all manner of NFTs via a social media-like approach, to allow users to buy and curate their own collections.
Momint’s launch came a few weeks after Cape Town-based Worldart became the first local art gallery to put up artwork for auction as an NFT. The Jpeg-file piece, which depicts a masked, superhero-styled woman titled Timekeeper 151, was created by Cape Town artist Norman O’Flynn.
Momint CEO and co-founder Ahren Posthumus believe there are two strong factors that slow down the growth of the local NFT space. Firstly, there is a misconception that NFTs are only for art. The reality is that this technology is an incredible tool for the disintermediation of power and finance. NFTs will most certainly disrupt many other fields, including alternative investments, property management and even publishing in the next decade. Secondly, Posthumus believes there is a false assumption that all NFTs are worth millions. This is far from the truth and data already shows that over 50% of NFT sales are for less than R3500
Are you are looking for an NFT collector or consultant in South Africa? For any information about NFTs in South Africa get in touch with me via the contact page here.