{"id":376363,"date":"2021-12-04T13:14:00","date_gmt":"2021-12-04T10:14:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/2021-ends-with-a-question-are-nfts-here-to-stay\/"},"modified":"2021-12-04T13:14:00","modified_gmt":"2021-12-04T10:14:00","slug":"2021-ends-with-a-question-are-nfts-here-to-stay","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/2021-ends-with-a-question-are-nfts-here-to-stay\/","title":{"rendered":"# 2021 ends with a question: Are NFTs here to stay?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a35781ecd31e\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a35781ecd31e\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/2021-ends-with-a-question-are-nfts-here-to-stay\/#NFTs_environmental_impact_valuation_and_regulation\" >NFTs\u2019 environmental impact, valuation and regulation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/2021-ends-with-a-question-are-nfts-here-to-stay\/#Sustainable_NFTs\" >Sustainable NFTs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/2021-ends-with-a-question-are-nfts-here-to-stay\/#NFTs_and_museums\" >NFTs and museums<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/2021-ends-with-a-question-are-nfts-here-to-stay\/#NFT_exhibitions\" >NFT exhibitions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/2021-ends-with-a-question-are-nfts-here-to-stay\/#NFT_fundraising_by_museums\" >NFT fundraising by museums<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buradabiliyorum.com\/en\/2021-ends-with-a-question-are-nfts-here-to-stay\/#NFTs_and_environmental_education\" >NFTs and environmental education<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/buradabiliyorum.com\/en\/2021-ends-with-a-question-are-nfts-here-to-stay\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># 2021 ends with a question: Are NFTs here to stay? <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef><em>In her monthly Expert Take column, Selva Ozelli, an international tax attorney and CPA, covers the intersection between emerging technologies and sustainability, and provides the latest developments around taxes, AML\/CFT regulations and legal issues affecting crypto and blockchain.<\/em><\/p>\n<p>On Nov. 14, Tezos-based nonfungible token (NFT) marketplace Hic Et Nunc \u2014 which in Latin means \u201chere and now\u201d \u2014 abruptly shut down. Artists became <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/DianeDrubay\/status\/1460648120505798662\">worried<\/a> about their NFTs on exhibit at the Hermitage Museum\u2019s first-ever NFT exhibition, \u201cEthereal Aether\u201d (Nov. 10 to Dec. 10), as well as Art Basel Miami\u2019s first-ever NFT exhibition, \u201cHumans + Machines: NFTs and the Ever-Evolving World of Art\u201d (Dec. 2 to 4).<\/p>\n<p>Diane Drubay, founder of We Are Museums and a minter of NFTs on Hic Et Nunc \u2014 who curated a panel discussion at Art Basel Miami \u2014 explained to me: \u201cOf course, it was a shock to see Hic et Nunc shut down, but people took it right away as a new step over in their journey. Because when the website shut down, our NFTs were preserved on-chain, nothing was lost and artists were safe to keep making a living from their NFTs. We saw mirrors or new versions of HicEtNunc.art being opened only a few hours later, which provided the necessary backup for artists to keep selling and buying, exhibiting NFTs.\u201d She also added: <\/p>\n<blockquote><p>\u201cThe community is now organizing itself to create a decentralized autonomous organization (DAO) to keep experimenting with decentralization on Web 3.0.\u201d<\/p><\/blockquote>\n<p>This incident made me wonder: Will the \u201cInternational Year of Creative Economy for Sustainable Development,\u201d as declared by the United Nations <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">General<\/a> Assembly, go down in history as the year NFTs entered the mainstream? Or will it go down as a passing global fad of invention lurking in the shadows of the COVID-19 pandemic? I conducted research and interviews to find the answer.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>What are NFTs, and why are they revolutionizing the art world?<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"NFTs_environmental_impact_valuation_and_regulation\"><\/span>NFTs\u2019 environmental impact, valuation and regulation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>NFTs are digital assets that are built on a blockchain platform and are tradeable like digital trading cards in exchange for cryptocurrencies or even fiat currency. They generally act as evidence of ownership of digital assets, but the specific rights that attach to NFTs vary. Some NFTs incorporate \u201csmart contracts\u201d as part of the token that self-execute when defined events occur.<\/p>\n<p>Computer scientist \u201cAntsstyle\u201d has <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/antsstyle.medium.com\/why-nfts-are-bad-the-short-version-48acff22c54b\">critiqued<\/a> NFTs: <\/p>\n<blockquote><p>\u201cIn a nutshell, NFTs are bad for two reasons: 1. They are bad for the environment, as they rely on cryptocurrencies that cause huge amounts of carbon emissions. [&#8230;] 2. They are only valuable as tools for money laundering, tax evasion, and greater fool investment fraud.\u201d<\/p><\/blockquote>\n<p>The long version of Antsstyle\u2019s analysis <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/antsstyle.medium.com\/why-nfts-are-bad-the-long-version-2c16dae145e2\">gives<\/a> a comprehensive overview of proof-of-stake (energy-efficient) and proof-of-work (energy-intensive) NFT platforms.<\/p>\n<p>A. J. Woloszynski, manager at Eisner Advisory Group LLC of EisnerAmper, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.eisneramper.com\/non-fungible-tokens-money-laundering-flvs-blog-0821\/\">pointed out<\/a>, furthermore, that NFTs have subjective valuations determined by however much somebody is willing to pay for them: \u201cFor example, take a look at the image below. You are not encountering an issue with the image loading on your computer; what you are seeing is a plain gray box. This is an NFT known as The Pixel, produced by an artist who goes by the name [Pak] and sold for roughly $1.3 million dollars at a Sotheby\u2019s auction in April 2021.\u201d Other major art auction houses such as Christie\u2019s, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.phillips.com\/detail\/banksy\/HK010121\/22\">Phillips<\/a> and <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/portion.io\/nft-marketplace?gclid=CjwKCAiAnO2MBhApEiwA8q0HYU3eKqlW6r8uIpjo9Blke1qE40wm5HnKTMwJ76p6sE8YrLFguZIAghoCxPUQAvD_BwE\">Portion<\/a> also began auctioning NFTs minted on various nonfungible token platforms this year. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-12\/c1e61776-2d33-4d58-a750-793c470d1f89.png\"><\/figure>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Art reimagined: NFTs are changing the collectibles market<\/em><\/strong><\/p>\n<p>According to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/cryptoart.io\/artist\/pak?gallery=null&amp;price=null&amp;page=1\">CryptoArt<\/a>, Pak is the second-highest-selling crypto artist of all time, with around a $65 million market capitalization for his art pieces. NonFungible <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/nonfungible.com\/project\/boredapeclub\/BAYC\/9449\">ranks<\/a> Bored Ape Yacht Club at number one, with the \u201cBored Ape #9449\u201d NFT last selling for above $1 million.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-12\/2fd6e09d-e272-4624-aa09-41c2d92aa6dd.png\"><\/figure>\n<p>While not ranked by NonFungible, the low-pixel 24&#215;24 images of computer-generated CryptoPunks by Larva Labs were the first major NFTs. In March, CryptoPunk #3100 sold for 4,200 Ether (ETH), or $7.6 million at the time. This sale was surpassed by the sale of \u201cEverydays: The First 5000 Days,\u201d an NFT by graphic designer Mike Winkelmann, aka \u201cBeeple,\u201d that raised $69.3 million that same day, amounting to $13,800 per each work of digital art included in the collage. According to D<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>Radar, CryptoKitties by Dapper Labs \u2014 the first big Ethereum-based NFT project to use the ERC-721 standard \u2014 also <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/dappradar.com\/blog\/cryptokitties-suddenly-millions-of-dollars-in-trading\">registered<\/a> a 22,106% day-over-day increase in trading volume amid the recent NFT market resurgence.<\/p>\n<p>NFTs are not widely regulated. For example, earlier this year at leading NFT marketplace OpenSea, an executive was flipping nonfungible tokens he purchased after featuring them on the site\u2019s homepage \u2014 a move that presumably allowed him to sell them for a quick profit, since insider trading of NFTs on markets is not explicitly illegal. In another instance, 265 ETH ($1.1 million) worth of fraudulent NFTs claiming to be issued by Hong Kong-based gaming and venture capital company Animoca Brands and subsidiary Blowfish Studios were minted and sold via Discord. In the NFT heist of the century, a hacker <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.digitalmusicnews.com\/2021\/11\/21\/are-nfts-a-scam\/\">uploaded<\/a> 20 terabytes of NFTs originally minted on the Ethereum and Solana blockchains.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Nonfungible tokens from a legal perspective<\/em><\/strong><\/p>\n<p>Blockchain forensics firm Chainalysis <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blog.chainalysis.com\/reports\/2021-crypto-crime-report-intro-ransomware-scams-darknet-markets\">estimated<\/a> that about 0.34% of transaction volume in the $2.5-trillion cryptocurrency market, or about $8.5 billion worth, relates to illicit activity. According to NonFungible, 265,927 active wallets <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.reuters.com\/technology\/nft-sales-surge-107-bln-q3-crypto-asset-frenzy-hits-new-highs-2021-10-04\/\">traded<\/a> NFTs on the Ethereum blockchain during Q3. To investigate cross-border tax crimes with the rapid rise of cryptocurrency and NFTs and their use in money laundering, hacking, cyberattacks and other illicit transactions, governments around the world \u2014 especially the Joint Chiefs of Global Tax Enforcement \u2014 have been sharing information and resources.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Cybercrime task force monitoring the global digital financial system<\/em><\/strong><\/p>\n<p>Earlier this year, the Internal Revenue Service <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.irsstreamlinedprocedures.com\/irs-operation-hidden-treasure\/\">rolled out<\/a> \u201cOperation Hidden Treasure\u201d in collaboration with personnel from its civil office of fraud enforcement and its criminal investigation unit to examine tax evasion among users of cryptocurrency and NFTs. The latest <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.irs.gov\/pub\/irs-pdf\/p3583.pdf\">report<\/a> by IRS Criminal Investigation states that 93% of all seizures during fiscal year 2021, valued at $3.5 billion, involved cryptocurrencies. The United States Treasury Department also <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/home.treasury.gov\/policy-issues\/financial-sanctions\/recent-actions\/20211108\">put<\/a> 57 cryptocurrency addresses on its sanction list, along with one exchange \u2014 Latvia-based Chatex, which the Treasury Department <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/home.treasury.gov\/news\/press-releases\/jy0471\">said<\/a> facilitated transactions related to \u201cillicit or high-risk activities such as darknet markets, high-risk exchanges, and ransomware.\u201d<\/p>\n<p>Continuing U.S. President Joe Biden\u2019s whole-of-government effort to counter ransomware and the illicit use of cryptocurrency and NFTs, more tax regulations have been implemented. H.R. 3684, the Infrastructure Investment and Jobs Act, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.congress.gov\/bill\/117th-congress\/house-bill\/3684\/text\">requires<\/a> cryptocurrency \u201cbrokers\u201d \u2014 which includes \u201cany person who for consideration is responsible for regularly providing any service effectuating transfers of digital assets on behalf of another person\u201d \u2014 to report cryptocurrency and NFT purchases of over $10,000 to the IRS on Form 8300, including names and <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Social<\/a> Security numbers, or potentially face felony charges.<\/p>\n<p>In October, the Financial Action Task Force (FATF) issued new guidance concerning NFTs, stating that they are excluded in its definition of virtual assets. But FATF standards could still apply to NFTs on a case-by-case basis.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Sustainable_NFTs\"><\/span>Sustainable NFTs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>This year, NFTs have been the biggest disruptors of the art world, with artists minting, exhibiting and auctioning, and investors buying, selling, trading and investing. Nash Islam, an early investor in NFTs, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/nashtyrhymes.substack.com\/p\/my-5-emerging-principles-for-investing\">said<\/a>: \u201cFor NFTs, the community action is primarily on Twitter &amp; Discord.\u201d He also added: <\/p>\n<blockquote><p>\u201cInvesting in Pak across multiple projects has yielded massive multiples and also helped us understand and establish some principles for NFT investments.\u201d<\/p><\/blockquote>\n<p>Even Damien Hirst, the United Kingdom\u2019s richest living artist, launched an NFT <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/watch-movies-tv-seriess\/\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Watch Movies &amp; TV Series\" target=\"_blank\" rel=\"noopener\">series<\/a> titled \u201cThe Currency\u201d this year, exploring the nature of value, art and currency. It was minted on Palm, an NFT platform operating as an Ethereum sidechain, and <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/palm.io\/studio\/the-currency-by-damien-hirst-is-now-live-on-heni\/\">offered<\/a> for sale through Heni at $2,000 apiece.<\/p>\n<p><iframe loading=\"lazy\" title=\"Damien Hirst&#039;s $20M NFT drop explores the nature of value, art, and currency | Exclusive interview\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/culimw8LTL4?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p>Artist Ilya Shkipin told me he decided to mint his MonarxNFT series on the energy-efficient, open-source Tezos NFT platform: \u201cChoosing Tezos wasn\u2019t a choice but an obvious decision once we spoke with our supporters. Both the Monarx team and the community valued low gas fees and a convenient minting experience. We ended up doing what our community told us to do because the art is for them, not us. My MonarxNFT series \u2014 merge of a neural network carefully guided by artistic vision \u2014 was inspired at a time of loss in my life.\u201d<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">A tribute to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/VitalikButerin?ref_src=twsrc%5Etfw\">@VitalikButerin<\/a> as a king. Not sure where I am going to mint it. Eth gas is killing me. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/QUPqmwYnAh\">pic.twitter.com\/QUPqmwYnAh<\/a><\/p>\n<p>\u2014 Ilya SHK (@i_shkipin) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/i_shkipin\/status\/1460704075356336130?ref_src=twsrc%5Etfw\">November 16, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Monarx will be ascending this December. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/IWL6Ylb8md\">pic.twitter.com\/IWL6Ylb8md<\/a><\/p>\n<p>\u2014 Monarx.art (@MonarxNFT) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/MonarxNFT\/status\/1459611540097617923?ref_src=twsrc%5Etfw\">November 13, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Reid Yager, global director of communications and public relations for Tezos, explained to me that Tezos is presenting the first-ever NFT art exhibition occurring as an official partner of international art fair Art Basel, in collaboration with the host city\u2019s local institutions: \u201cThe Tezos Ecosystem Exhibition at Art Basel Miami Beach will feature more than 25 artists from 18 countries spanning 5 continents showcasing their work. Additionally, over 30 artists, gallerists, museum directors, celebrities, and thought leaders will participate in the Tezos Ecosystem Exhibition Speaker Series in the exhibit space.\u201d As part of the show, visitors will be able to create AI-generated portraits of themselves and mint them as NFTs on Tezos.<\/p>\n<p>Yager added: \u201cThe leading Tezos NFT platform HicEtNunc, which recently completed the first-ever NFT marketplace Web3 transition from platform-owned to community-owned (DAO), has seen over half a million NFTs minted by users from every corner of the globe. The Tezos blockchain is booming with over 6 million contract calls in September, and November is on pace to top that. The Tezos blockchain is the choice for minting and collecting NFTs globally. In fact, one of the first ever NFTs from a Museum was minted on the Tezos blockchain by the Whitworth Museum \u2014 William Blake\u2019s The Ancient of Days.\u201d<\/p>\n<p>According to DappRadar, Hic Et Nunc was the 14th-largest nonfungible token marketplace in terms of all-time sales ($50.37 million) when it shut down, with the average sale at $25.19 per NFT. The leading marketplace for NFT trading is New York-based OpenSea, which operates on the proof-of-work Ethereum blockchain. Ethereum is in the process of transitioning to Ethereum 2.0, a proof-of-stake blockchain, which will be 99% less energy-intensive and more scalable, secure and sustainable. But whether OpenSea or any of the other top-ranked marketplaces will be able to hold their place in this fast-changing market is yet to be seen, as some of the largest companies have been entering the NFT space to transform the Metaverse, including:<\/p>\n<ul>\n<li><a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">Technology<\/a> companies: TikTok, Twitter, Facebook, Alibaba, Tencent, Xiaohongshu, NetEase, Baidu, Microsoft and eBay.<\/li>\n<li>Fintech companies: China\u2019s Blockchain-based Service Network, which will support future central bank digital currencies from various countries, launched infrastructure to support the deployment of NFTs in China and other countries.<\/li>\n<li>Cryptocurrency marketplaces: Coinbase and Binance NFT, which sold the Hermitage Museum\u2019s first nonfungible token.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"NFTs_and_museums\"><\/span>NFTs and museums<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A study <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/icom.museum\/wp-content\/uploads\/2021\/07\/Museums-and-Covid-19_third-ICOM-report.pdf\">carried out<\/a> by the International Council of Museums (ICOM) found that as a result of the COVID-19 pandemic, more than 30% of museums were forced to reduce their staff and nearly 6% may never be able to reopen to the public. But the digitization of museums is taking place at high speed, with some museums turning to NFTs for a variety of reasons.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Charitable sustainable NFTs for the United Nations\u2019 17 SDGs<\/em><\/strong><\/p>\n<h3><span class=\"ez-toc-section\" id=\"NFT_exhibitions\"><\/span>NFT exhibitions<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Hermitage Museum\u2019s \u201cEthereal Aether\u201d consisted of 36 NFTs from around the world, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/celestialhermitage.ru\/en\/#modal-work5\">including<\/a> Larva Labs\u2019 \u201cryptopunk #5652,\u201d \u201cSchr\u00f6dinger\u2019s Cat\u201d from Dapper Labs\u2019 CryptoKitties and Mihai Grecu\u2019s \u201cNeoPyongyang I,\u201d minted on Hic Et Nunc.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-12\/e0015986-14cb-4f72-a966-ec8389e2189d.png\"><\/figure>\n<p>The curators, Dimitri Ozekov and Anastasia Garnova, explained to me: \u201cInterest in digital art intensified during the COVID-19 pandemic, when millions of people sat at home for months on end with the museums closed. The first NFT exhibition will launch the creation of the \u2018Celestial Hermitage\u2019 \u2014 a new museum in the virtual noosphere, which in the future will be transformed into a digital branch of the actual museum.\u201d They also added: <\/p>\n<blockquote><p>\u201cWe are confident that the area of digital art, NFTs in particular, will develop in incredible ways, and that it can look forward to a great future \u2014 safe, smart and fascinating.\u201d<\/p><\/blockquote>\n<p>Guggenheim Partners co-founder Todd Morley <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/news.artnet.com\/art-world\/nft-museum-111-west-57th-1973184\">announced<\/a> plans to create the world\u2019s biggest museum dedicated to NFTs, within a massive skyscraper located in New York City, just four blocks from the Museum of Modern Art.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"NFT_fundraising_by_museums\"><\/span>NFT fundraising by museums<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Three out of the 20 largest museums in the world \u2014 the State Hermitage Museum in St Petersburg (No. 2), the Metropolitan Museum of Art in New York City (No. 4) and the British Museum in London (No. 12) \u2014 turned to NFTs for fundraising this year. Other examples include the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.artnews.com\/art-news\/news\/uffizi-galleries-nfts-caravaggio-botticelli-1234593017\/\">Uffizi<\/a> in Florence, the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/whitworth.vastari.com\/theancientofdaysnft\">Whitworth<\/a> in Manchester, the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/irishtechnews.ie\/worlds-first-religious-relics-to-be-made-into-nfts-unique-digital-assets\/\">Museum and Church of S\u00e3o Roque<\/a> in Lisbon, the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/koreajoongangdaily.joins.com\/2021\/07\/25\/culture\/koreanHeritage\/nft-Hunminjeongeum-haerye-hangul\/20210725153900570.html\">Kansong Art Museum<\/a> in Seoul, the Museum of Broadcast Communications in Chicago and the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.hollywoodreporter.com\/business\/digital\/academy-museum-nfts-haas-brothers-1235033431\/\">Academy Museum of Motion Pictures<\/a> in Los Angeles. There\u2019s even an NFT of an entire museum based in the Metaverse <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/mashable.com\/article\/nft-metaverse-digital-museum\">called<\/a> the Museum of Digital Life.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-12\/d4d9dc1b-7020-4351-ba5a-3a3d4208a0b4.png\"><\/figure>\n<p>The Miami Institute of Contemporary Art accepted a donation of \u201cCryptoPunk #5293\u201d from one of its trustees.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-12\/fceb69b0-9b5e-4299-9a32-c0774b384e03.png\"><\/figure>\n<p>Jean-S\u00e9bastien Beaucamps, co-founder of French eco-friendly startup LaCollection \u2014 an Ethereum-based NFT platform \u2014 explained to me: \u201cTo coincide with its Hokusai: The Great Picture of Everything exhibition (30 September to 30 January 2022), the British Museum partnered with LaCollection.io, to sell NFTs of 200 Hokusai works. For each NFT minted by our company, we will plant a tree to compensate for the wildfires of last summer and for our NFTs to be carbon neutral: we call it our NFTree program. The NFTs will consist of works in the exhibition, including the famed The Great Wave, while another 100 will be from the BM\u2019s own collection, including drawings from the recently re-discovered book which is the subject of the exhibition.\u201d <\/p>\n<h3><span class=\"ez-toc-section\" id=\"NFTs_and_environmental_education\"><\/span>NFTs and environmental education<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>This year, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/ubiverse.org\/posts\/cimuset-art-shows-by-selva-ozelli\">during<\/a> its 48th annual conference \u2014 where I <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/ubiverse.org\/posts\/cimuset-art-shows-by-selva-ozelli\">held<\/a> an art show titled \u201cMuseums &amp; Environmental Concerns, New Insights\u201d \u2014 the ICOM\u2019s International Committee for Museums and Collections of <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/sciencee\/\" data-internallinksmanager029f6b8e52c=\"5\" title=\"Science\" target=\"_blank\" rel=\"noopener\">Science<\/a> and Technology addressed our planet\u2019s environmental concerns and the way science and technology museums can approach and present this important issue via education and exhibitions. I interviewed several museum directors to learn about the role of NFTs in their museums. Here is what they told me.<\/p>\n<p>George Ma, head of the climate action section, social responsibility and the sustainable development office at the Jockey Club Museum of Climate Change at The Chinese University of Hong Kong:<\/p>\n<blockquote><p>\u201cNFTs are currently not on our radar, but something we could keep an eye on. We digitized our exhibitions. We have a 360 Virtual Tour which is the digital version of our permanent exhibition. Since 2018, for every themed exhibition we developed, we also produced a digital version of it, either in a more website-like format or in 360 VR.\u201d<\/p><\/blockquote>\n<p>Patrick Hamilton, director of climate change, energy and the environment at the Science Museum of Minnesota: <\/p>\n<blockquote><p>\u201cThe Science Museum of Minnesota is digitizing its collections but I\u2019m not aware of any current plans to digitize its exhibits or sell NFTs.\u201d<\/p><\/blockquote>\n<p>Julie Decker, director and CEO of the Anchorage Museum: <\/p>\n<blockquote><p>\u201cNFTs are a really interesting topic to think and read about. Currently, we do not have plans.\u201d<\/p><\/blockquote>\n<p>Viviane Gosselin, director of collections and exhibitions and curator of contemporary culture at the Museum of Vancouver:<\/p>\n<blockquote><p>\u201cAt the moment we are not selling NFTs for fundraising or collecting purposes \u2014 not yet. My understanding is that it is not by and large a \u2018green industry\u2019 so that is a bit of a red flag and turn off for me!\u201d<\/p><\/blockquote>\n<p>Soren Brothers, Shiff curator of climate change at the Royal Ontario Museum:<\/p>\n<blockquote><p>\u201cROM is digitizing its collections, which can be accessed here (https:\/\/collections.rom.on.ca\/). I don\u2019t know anything about whether ROM has plans to sell NFTs.\u201d<\/p><\/blockquote>\n<p>It should be noted that the Los Angeles County Museum of Art has an Art + Technology Lab where it <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.lacma.org\/lab\/nfts-and-museum\">runs<\/a> a series to explore what NFTs mean for institutions collecting digital art. It also examines the \u201cartistic, curatorial, conservation, registration, and legal issues of this new digital format.\u201d We Are Museums\u2019 Drubay also recently announced \u201cUnlocking Web3 for the Arts and Culture,\u201d a new program organized by We Are Museums in collaboration with TZ Connect and the Blockchain Art Directory 2.0 to guide arts and culture professionals to navigate Web3 innovations.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>I remember reading in the early 1990s that Bill Gates, the founder of Microsoft, said art would digitize and people would not hang artwork on their walls anymore, instead projecting any masterpiece onto a digital screen on their walls. At the time, this novel idea had me very excited.<\/p>\n<p>Fast-forward to 2021, the second year of the COVID-19 pandemic, and NFT sale volumes surged 1,000%, with people interested in using them in a multitude of areas: visual arts, videos, music, collectibles, to raise brand awareness, gaming, publishing, carbon trading and fundraising. <\/p>\n<p>Did you know that a rug given as a gift to Pope Francis by Sheikh Mohamed bin Zayed Al-Nahyan, crown prince of Abu Dhabi, was <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/me.mashable.com\/culture\/15693\/uaes-unique-gift-to-pope-francis-being-eternalised-as-nft-goes-for-charity-sale-at-abu-dhabi-art\">minted<\/a> as an NFT and put up for sale to raise funds for Afghan rug weavers, who will receive 80% of the sale\u2019s proceeds?<\/p>\n<p>I think NFTs \u2014 <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.voanews.com\/a\/nft-named-word-of-the-year-for-2021\/6326462.html\"><\/a>named word of the year by Collins Dictionary \u2014 are here to stay.<\/p>\n<p class=\"post-content__disclaimer\"><em>The views, thoughts and opinions expressed here are the author\u2019s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.<\/em><\/p>\n<div>\n<div style=\"background: rgb(239, 239, 239); border: 1px solid rgb(204, 204, 204); padding: 10px;\"><strong>Selva Ozelli<\/strong>, Esq., CPA, is an international tax attorney and certified public accountant who frequently writes about tax, legal and accounting issues for Tax Notes, Bloomberg BNA, other publications and the OECD.<\/div>\n<\/div>\n<p><template data-name=\"subscription_form\" data-type=\"nifty_newsletter\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/2021-ends-with-a-question-are-nfts-here-to-stay\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# 2021 ends with a question: Are NFTs here to stay? &#8221; In her monthly Expert Take column, Selva Ozelli, an international tax attorney and CPA, covers the intersection between emerging technologies and sustainability, and provides the latest developments around taxes, AML\/CFT regulations and legal issues affecting crypto and blockchain. On Nov. 14, Tezos-based nonfungible&#8230;<\/p>\n","protected":false},"author":1,"featured_media":376364,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMTIvZjU5NmFjYzQtYjExYS00NDk2LTg3YjctYTQ3ZjVhZjRkNjMzLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74894,74983,91498,95118,93542,74355,116,1545,48,70934,4965],"class_list":["post-376363","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-blockchain","tag-decentralization","tag-metaverse","tag-nft","tag-web3","tag-adoption","tag-art","tag-coronavirus","tag-internet","tag-regulation","tag-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/376363","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=376363"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/376363\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/376364"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=376363"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=376363"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=376363"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}