Digital art capturing the MZ generation... Lee Seung-jin: "Art NFT, a New Investment Opportunity" [2023 GFE]

“The emergence of Non-Fungible Token (NFT) art is increasing the investment value of the art trading market.”

Lee Seung-jin, Director of Strategy Planning at ARTTOKEN, explained the status of 'NFT in the art market' at the '2023 Global Financial Expo (GFE)' held at COEX, Seoul, on the 12th, hosted by Hankyung TV (Theme: 'The Era of Super Transformation Where Everything Changes,' 'Investment Solutions in Times of Crisis and Opportunity?').

Thanks to the development of digital technology, people can now appreciate artworks without having to visit the physical exhibition hall.

A particular advantage is that converting artworks into NFTs allows individuals to easily trade and own them, and expensive works can be divided into fractional shares for small investments.

Furthermore, the emergence of NFTs allows metadata—including the artwork title, artist name, and detailed content—to be saved in the digital art, enabling the verification of the original's authenticity.

Due to the characteristics of Art NFTs, they are rapidly emerging as an alternative investment option for the MZ generation, following real estate and stocks. The share of Art NFT in the overall digital art market has already reached 36.4%.

Director Lee reported, "Although the NFT market is undergoing a slump due to the decline in the cryptocurrency market, only Art NFTs are performing well," adding that "the number of NFT transactions grew by 170%, surpassing 100 million last year from 58.7 million in 2021."

He emphasized, "Just as the high-quality music streaming market grew with the development of the internet, digital art sales in the art market are steadily increasing as blockchain technology begins to develop," adding that "digital art has many points of connection with fashion, entertainment, games, etc., more so than music."

However, Director Lee did not forget to advise that investors must be aware that measuring returns relative to the current market and assessing risks in digital art investments can be difficult.

Reporter Minjeong Jeonjmj@wowtv.co.kr

Source: Hankyung Economy (https://www.hankyung.com ) "https://www.hankyung.com/article/2023101242805