Photographer, Artist, and ALLSHIPS Founder Dave Krugman shares how tastemakers and gallerists can navigate the digital art market’s ever-shifting tides to create a more equitable art world of the future.
Dave Krugman. Courtesy ALLSHIPS.
As a NFT insider, how do you perceive the stagnation of the NFT market after its high peak? What factors do you think have caused this stagnation apart from the main significant issue of crypto market crush?
I think that the current NFT market is a much more practical and realistic market than the speculative bubble of 2021. That high peak was not an accurate reflection of the demand for these products and technologies. So I don’t think there was a “cause” for the stagnation of the market per se, just a correction back to reality that has actually created a healthier environment to build in. I think what we proved over the past years is that despite the highs and lows and ups and downs of the market, there is a core use case for tokenized art and collectibles. The fact that there is still a market here is very encouraging—there is still deep value in quality projects, in thoughtful artists who understand community capital and attention economies. I much prefer this type of market because you can see what is really working without having to sift through mountains of speculative assets that have no real purpose besides gambling. The projects and artists building in these times are here for the right reasons and are building the foundation for a bright future with on-chain art and media.
Most people with traditional art backgrounds face significant barriers when trying to enter the digital art field. What do you think are the main factors hindering their entry into this field?
I think a lack of understanding of the underlying technology is the biggest barrier to entry for people in the traditional art world. Unfortunately they mostly encounter sensationalist headlines about major sales, or major crashes, and don’t dig deeper into what is actually happening in the burning core of this incredible community. When you think something is a fad, or a bubble, there is very little incentive to learn about how it all works. The trad art people who have successfully made the leap into the digital art field have taken the time to understand the value prop of these new technologies. Provenance, 24/7 global liquid markets, social systems embedded into the market, no need for shipping, storage, or physical space overhead, increased security and fraud prevention, the list goes on.
I see this space in a position where social media was in 2012: a small group of passionate people understand that this is a world changing paradigm shift. Galleries and brands back then ignored Instagram, for example, and now arguably it’s one of the most important tools they have access to. The same will happen with blockchain tech, and the people who aren’t taking it seriously now will have a hard time playing catch up.
Another reason is this is just a generational thing. The people who are pushing this space forward are digitally native. They grew up online. Their social lives are largely online. It makes perfect sense for us to socially signal in online spaces. Why would I prefer a physical work on my wall where maybe 10 people will see it? Online, with digital work, I can show 100s of thousands of people that I own that work and support that artist. People in traditional art are generally less online and less interested in those online social spaces. The newest generations are even more online and that demographic doesn’t even think twice about this stuff. It just makes sense.
What unique qualities does digital art possess that make it more worthy of collection compared to traditional art?
It’s a more liquid market, it’s peer-to-peer, artists get more of the value they create, it has no physical overhead, no shipping, no storage, no degradation with time. It has immutable provenance, it can be dynamic and evolving, it lives in a space that has social systems embedded so marketing the work is easier. These tokens align incentives and create symbiotic systems of support between artists and collectors. There are no intermediaries between the artist and the collector, leading to deeper and more lasting relationships.
Good artists in this space have innovative ideas that use the blockchain as a canvas. They are good at generating attention and managing their collector community. They understand that they are responsible for creating community capital and protecting the value they create. The assets they issue store that capital (NFTs) and can be traded between people at will, with very little friction.
How do you assess the difference for working with traditional art galleries vs those who are more digital art native, what would trad art galleries need to learn about these digital assets?
Traditional galleries usually take on the role of promoter and dealer and marketer. In digital art, that intermediary is pretty much gone, and people want that direct connection with the artist- which means the artist is taking on all of those responsibilities for themselves. The artist’s freedom to move freely throughout the landscape online is essential. Control or limitation by a gallery and their agreements with the artists is antithetical to the cryptoart movement. Gallerists who are interested in this space need to be hands off, and understand ALL the connections their artists make bring value to the work. The value of an artist’s work is the sum of their network. Let your artists build these networks, use your own networks to help them, and the work and artist will thrive.
Homepage, ALLSHIPS. Courtesy ALLSHIPS.
What do you think of the practices of traditional artists, galleries, auction houses, and museums attempting to enter the realms of NFTs and digital art in recent years? And vice versa?
I think traditional institutions that enter the space should embrace the ethos we have built here and they should be willing to leave behind things that we have left behind. I like what Christies has done with Christies 3.0. I like what PACE has done with PACE Verso. I like what MoMA has done with Refik Anadol and with their postcard project. They need to realize this is a new space with new rules and new players. They need to build things that advance the mission of crypto art and they need to be humble and honest with their efforts in order to gain the respect of the core community here.
What is your perspective on the relationship between digital art and the concept of the metaverse? How do you evaluate the current situation of the metaverse?
I define the “metaverse” as the non-physical world that connects us all, encompassing everything that fits that category. The metaverse is the aggregate of your social media, your texts, calls, emails—everything that you can’t physically touch. The idea of a “metaverse” that is some virtual land or VR space makes very little sense to me compared to the definition I offer above. The metaverse is alive and well, growing everyday with every new screen and leap forward in technology.
What is your view on the popularity of AI topics in the art world this year? What do you think of generative art in the realm of AI? How are you as an artist dabbling in the AI space and what do you think artists need to know in order to take advantage of this toolkit?
AI is pretty incredible. I think the popularity of AI is in its novelty right now. But it’s simply another tool for artists to use. The threat to artists from AI is overblown in my opinion. Successful artists are relationship builders. Once the work is “good enough”, the rest of the task is telling a compelling story and building relationships with people who are willing to support you. AI changes nothing about that critical fact.
Artists are the curious ones and should be willing to experiment with these tools as much as possible. There is a tendency to fear new tech and reject it but innovation always wins. Better to know what is out there than to bury your head in the sand.
Who will shape the future of the market of digital art?
People who are passionate about this new layer of the internet will shape the future of digital art. Whether it is collectors, artists, institutions, coders, builders, policymakers, etc. People who are unwilling to stick to the status quo, people who are interested in renegotiating our relationship with the internet, these are the people who will ensure a better future for digital artists in online spaces.
