Art expert Magnus Resch on similarities between art and NFT markets –

Magnus Resch has spent many years deciphering the opaque art market for general audiences and academics alike, turning a complicated social dance into a matter of measurable clarity with books like Art Galleries Management and How do you become a successful artist?

Resch has a particularly unromantic view of how art works, as might be expected of an economist, entrepreneur and Yale teacher. This data-centric approach makes him the ideal person to cut through the messy world of NFTs. His new book, co-written with Tam Gryn, Creating and Selling NFTs – A Guide for All Artistscame out yesterday.

In an interview with ART news During NFT.NYC, Resch makes illuminating comments about the similarity of the art and NFT markets, why NFTs will change the way galleries work, and even makes a prediction about what to expect from the volatile NFT market over the course of the year. the next 18 months.

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ARTnews: So what drew you to the art market to begin with?

Magnus Resch: To fund my studies, I started selling art in my twenties, which made me wonder why some galleries are successful and others are not. This question became the focus of my dissertation.

ARTnews: And what did you find?

Resh: Good luck is about everything not related until art. What a artist creates not For real matter in front of their good luck. For galleries, all the work they do is not related until art is what makes the gallery successful. Success for galleries and artists essentially comes down to the network they are in. Who you know is more important than what you sell or what you create.

ARTnews: I spoke to an NFT collector not long ago who said something similar. He said, “No matter what it looks like, if there’s a strong community behind it, I’ll buy.”

Resch: Isn’t the art world the the same? The art world thinks bad from the NFT room, because to be nothing but about money. Yes, that is WHERE. that is the number a rode Why people to buy NFTs: until to make money. But the art world, Bee least Bee the top end from the market-and That is a terribly important distinguish-the top end from the market is also all about money.

ARTnews: But despite these fundamental similarities, the art world is reluctant to enter the NFT space.

Resch: That surprised me. I go to an NFT event and see so few people from the traditional art world running around very often, and I wondered why. But I understand; I didn’t like it at first either. Suddenly I was surrounded by all these new people, my credentials from the traditional art world no longer mattered. Everything I had built up over so many years was irrelevant. And then there was a whole new technology, a whole new language that I had to learn and understand. That was a challenge, but I went on this journey because I was curious, which is why I wrote this book.

Art expert Magnus Resch on agreements

Cover of how to create and sell NFTs.
Thanks to Magnus Resch

ARTnews: What are some of the top reasons why art insiders are reluctant to enter this market? aesthetics?

Resch: It’s never a discussion about aesthetics. There are a few reasons why I think they are reluctant. First, they’re shut down because suddenly works by artists they’ve never heard of are selling for millions of dollars. Second, it is very difficult to get in: wallets, Metamask, blockchain, these words alone can be scary for people. And third, historically, the art world has always been slow to adapt to new things. We are happy with the status quo. Let’s just continue with this level of control.

ARTnews: Do you think the art world can afford to ignore NFTs?

Resch: The biggest problem in the art market is that we have too many visitors and too few buyers, the number of buyers is falling. And why is that? Because buyers are afraid to enter the art world. It’s too elitist, it’s not open to new buyers. If you can’t convince rookies [to join] in the art world, we will all fail. But NFTs can help solve this problem. Suddenly there are people buying because they had full transparency of prices and automatic access.

ARTnews: What is the impact of this for artists?

Resch: What artists realize is that they can be successful without galleries, 50/50 is no longer enough. Artists can act as real entrepreneurs, find and create their own customers, their own distribution channels. We’ve seen many artists who weren’t making money three years ago are now very wealthy because they’ve taken their careers into their own hands, rather than relying on someone else. Jen Stark is a prime example.

ARTnews: But do artists really want to have that role? And for all the nonsense that galleries get for dodging buyers and playing games, isn’t that all ultimately in the service of putting artists in the best possible collections and hopefully institutions?

Resch: It’s true that artists need galleries, and the NFT world needs them too. Most NFTs will not hold value in the long run because they do not have the credibility needed to remain successful. People like Erick Calderon understand the importance of tapping into the traditional art world to maintain market value. That’s why he opened the room [Art Blocks] in Marfa and why he has this partnership with Pace.

ARTnews: Are there any predictions for how the NFT market will develop in the future?

Resh: Yes. We will see another brief peak, and then a decline. In 18 months from today, the market will stabilize.

ARTnews: Good to know.

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