The Dubai Art Fair, which was held in March 2022, opened with a new digital art section exhibiting non-fungible (NFT) tokens — a financial security that can digitally represent assets like digital artwork. According to experts, this is an extension of the contemporary art market, celebrating and creating new trends.
Specifically, NFT art is a form of digital art tokenized on the blockchain and purchased using cryptocurrency. One artwork alone during the exhibit was sold for an amount of $69.4 million. However, it was not just the price tag of these artworks that caught the world’s attention, but also the technology through which they are sold.
How it Works
NFTs are actually digital certificates that authenticate ownership over various digital assets, such as drawings, music, videos, and even memes and articles, using blockchain technology. They are bought using crypto, such as Ether, and allows for the existence of original arts in a virtual world where copies can be easily made.
Unlike other digital artworks that come in jpeg and gif formats, which can be duplicated, the possessor of the certificate of an NFT artwork continuously maintains his or her ownership over the asset. As a result, many people will still be able enjoy and download the art itself, but only one person can own it.
Enriching Dubai as a Global Crypto Capital
With the aim of enhancing its crypto economy more, Dubai passed a legislation governing crypto exchanges in the emirate — Law No. 4 of 2022. This aims to regulate the trade of virtual assets by setting a legal framework relating to NFTs and other cryptocurrencies, reflecting its vision to become among the leading jurisdictions for investors of blockchain technology.
Being among the keys for the future success of Dubai, the emirate also started to shift its focus in the field of art, fostering socio-cultural movements surrounding equity and representation, as artists from the Global South continue to emerge through NFT artwork. By allowing them to showcase their contents, the emirate is able to offer a platform for many undiscovered creators, while continuously enriching its position as a global crypto capital.
Global Response
During Art Dubai 2022, when NFT artworks were first showcased, over 100 contemporary, modern, and digital galleries from 44 countries, including over 30 first-timers, participated. More than 30,000 people had also been reported to come, including institutional visitors from major art capitals all over the word, such as Zeitz Museum of Contemporary Art Africa, The Centre Pompidou from Paris, and The British Museum from London, among others, clearly showing the increase of interest in the field of the new art.
According to reports, the fair was expected to have a direct impact worth $41 million in new money on Dubai’s economy. This only demonstrates how people seem to enjoy the opportunity of having to interact with NFT art, paving the way for better opportunities in terms of Dubai investments.
Invest in Dubai through NFT Art
Given the positive global feedback it has gained, along with the robust and rich investment systems in the emirate, there appears to be a bright future for Dubai investment through NFT art.
If you are looking to invest in Dubai anytime soon, reach out to the best financial advisors in the UAE through AIX Investment for a more secure and sound investment portfolio.
Add Comment