NUMOMO is the world's first Creative NFT Agency. NUMOMO is based in Seoul, founded by Scott Fuzion and Rolf Hoefer. NUMOMO provides two services. First, it educates creatives about the benefits of tokens commonly referred to as NFTs. Second, it supports the most talented creatives with a complete, end-to-end service in the blockchain, NFT Art and token space. This post tells the story of NUMOMO building up its Beeple collection.
It's Oct 31, 2020. An artist called Beeple has been producing artworks every day for over 10 years. Until today, he has posted these artworks online for free. But today Beeple is selling several of his digital artworks for $1 per artwork. Each artwork comes in 100 original digital copies or "editions".
NUMOMO bids for 1 of the 100 editions titled "POLITICS IS BULLSHIT". 100 bidders are faster than NUMOMO, and they buy each of the 100 original editions for $1.
Minutes later, some successful bidders put up their editions for sale. NUMOMO immediately buys an edition of "POLITICS IS BULLSHIT" for $420. $420 for a digital JPEG that minutes earlier cost only $1. It felt expensive.
4 months later, on Feb 24, 2020, one of the 100 editions of "POLITICS IS BULLSHIT" last sold for almost $100,000. $420 feels cheap now. Very cheap. We should have bought more.
It's Dec 12, 2020. Beeple is selling artworks again.
- First, 3 artworks are sold as "open editions" for 5min. Anyone who wants to buy an original edition of this artwork will pay to create and own an original edition. After 5min, the opportunity to create an original edition will forever disappear. No more original editions will ever be printed. At the end of the 5min, 601 original editions are purchased. Each edition cost $969. NUMOMO bought original editions of each of the three artworks.
- Second, 20 artworks are sold in an open auction. In open auctions, the highest bidder gets the only original edition that will ever exist of that artwork. Beeple put up 20 artworks, and so there are 20 open auctions. At the end of the open auctions, a user by the name of Metakovan bought all 20 artworks, outbidding everyone else, paying a total of about $2.2M.
2 months later, on Feb 24, 2020, each of the 3 open edition artworks last sold for about $100,000.
It's January 23, 2021. Metakovan bundles Beeple's 20 artworks into a single "collection" called "B.20". Metakovan then fractionalizes the collection into 10,000,000 million pieces, or B.20 tokens. Metakovan keeps 60% of the B.20 tokens, and puts up the remaining 40% for sale at an event called Metapalooza.
Metapalooza's goal is to enable anyone to access and own a piece of Beeple's historic collection. The sales goes live. Within seconds, 14 addresses buy all the 40% of B.20 tokens. Some of the 14 accounts pay up to $8000 in transaction fees to make sure their transaction is processed first.
Metakovan is surprised by the demand, and unsatisfied with the concentrated outcome of the sale. As a result, Metakovan releases a second batch of 1,000,000M B.20 tokens one hour later. In that second batch of B.20 tokens, Metakovan limits purchases to a maximum of $1000 per address. With this limit, Metakovan hopes to better achieve the goal of decentralizing ownership of Beeple's artworks. The price per B.20 token, in both rounds, is fixed at $0.36 per token.
NUMOMO participates in Metapalooza, and is one of the select 14 participants. NUMOMO buys exactly 1 B.20 token for $0.36 in the first sales round. The transaction cost for acquiring this 1 B.20 token is $24.37. That is, the transaction cost is higher than the cost of what NUMOMO is buying. Why pay more in transaction fees than 1 B.20 token is worth?
NUMOMO believes the meaning that 1 B.20 token symbolizes is worth more than buying many 1 B.20 tokens. Buying exactly 1 B.20 token symbolizes the idea that Beeple and B.20 are a part of a history where every asset and person is the same, open, and globally accessible. Now that NUMOMO is one of the 14 participants of the first sale, and the only one that bought exactly 1 B.20 tokens, NUMOMO's B.20 token gain additional--even though unexpected--historical meaning.
1 month later, on Feb 24, 2020, the B.20 tokens last sold for over $6.00.
On Feb 17, the world famous art auction Christie's, in collaboration with Makersplace, announces it will sell one of Beeple's artworks. The sale will happen from Feb 25 to March 11. What will this mean for NFT history, and how much will Beeple's artwork sell for at Christie's?