As one example, Path, also known as Cryptopathic, has a keen understanding of the resale opportunities that NFTs present. This enables artists to instantly get a cut of any and all future sales of their work, in perpetuity.Ĭollectors can harness the powerful potential behind secondary markets, too. With NFTs, an artist’s right to secondary-sale royalties is automatically guaranteed thanks to a few simple lines of code, with no extra legal work required. How are NFTs revolutionizing secondary markets? Because of all this, negotiations concerning secondary markets have only been available to established artists with massive institutional support (as one example, Jeff Koons’ Rabbit resold for $91 million at Christie’s, setting a new secondary market record for a work of art sold by a living artist). To make matters more complicated, the inherent confidentiality of art world transactions has further obscured resale figures, leaving most artists in the dark when their work changes hands. While some laws do exist to protect artists' resale rights, enforcing these can be a convoluted and expensive process, requiring lengthy amounts of legal paperwork. Until recently, secondary markets have been quite difficult to track. While the “primary market” refers to the first sale of an artwork, the “secondary market” encompasses all subsequent resales of the work. What exactly are secondary markets, and how have they worked thus far? In fact, the technology they’re built on perfectly positions them to solve the problem of how artists can capture value from their secondary markets, and already, secondary NFT sales are putting royalty earnings directly into the pockets of artists all over the world. But up until now, a reliable mechanism to make that happen has never existed. When the value of an artist’s work rises and someone cashes in on their market, the artist should see a cut of that. This isn’t just strange, it’s objectively unjust. Most artists-even those whose work sells for exorbitant prices, with well-established secondary markets-never see a penny when their work is resold. In Moises’s decade-long career, the artist had never earned profits from a resale before. In that instant, Moises earned his first royalty, which was automatically deposited to his wallet. A bidding war ensued, and the NFT was collected again-this time for 4.7 ETH. Four months later, the work was re-listed on the secondary market.
In February 2021, Moises Sanabria’s genesis NFT Beyond Money #1 was collected on Foundation for 1 ETH.
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