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NFTs

Earn Crypto NFT Royalties & Avoiding Scammers

For centuries, the Art industry has flourished in several ways besides serving to offer aesthetic and materialistic comfort to the collectors of art. The global valuation of the industry still scales up to $50 billion, despite suffering a 14% loss of sales because of the recent pandemic. Regardless of the hard days, the industry has observed the emergence of various trends.

Enthusiastically, it continues to adopt them for making the industry more inclusive for both the creators and consumers. Among such trends is the sale of NFTs, which has revolutionized both the world of finance and art itself.

In 2020, the gross sales of Art pieces in the form of NFTs had recorded a sum of approximately $250 million, which only grew to an eye-watering sum of $2 billion during the first two quarters of 2021. Although it is quite normal in the world of art, it is pretty substantial all the same when you consider these transactions as an investment.

Let’s check out how NFTs are helping crypto artists (Artists that mint their creations) and if you’d like to learn more about NFTs in detail, click on this link to learn more.

Crypto NFTs: Evoking Art, Artists & Audience

NFTs or Non Fungible Tokens are smart contracts that follow the ERC 721 protocol and are bound to the blockchain. Essentially, they represent unique non-fungible items and assets of both the digital and tangible types. Their existence on the blockchain allows them to be sold, borrowed, bought and lent by any person across the globe. All the while also maintaining the transparency of the transaction.

NFT Royalties

Global Exchange & Exposure

Furthermore, a person can buy the Non Fungible Tokens from NFT gateways or NFT marketplaces via cryptocurrencies or by converting their fiat money. These gateways and marketplaces host NFTs created by artists and traditional auction houses, thereby offering a global platform for the exposure and sale of art.

Read More: Best NFT Marketplaces

Global Art Gallery & Transaction Transparency

Collectors who previously relied on physical transactions alone via fiat money now possess the opportunity to purchase art anonymously. Additionally, they now have access to view innumerable pieces of art that they may choose to own. Similarly, artists can go global with their art via minting them as NFTs to earn recognition and reward for their efforts. Thus, establishing international art galleries.

Inviting Investors & Generations

The manner in which crypto NFTs are sold is deemed investment opportunities among the groups of Millennials and GenZ, who previously kept their distance from trading activities. Besides them, the collective interest placed by organizations and investors into NFTs has skyrocketed the number of active wallets on the blockchain to a 97% growth until 2020.

Hence, metaphorically making NFTs a fountain of lucrative monetary gains. With such impressive figures of the NFT market growing immensely by each passing quarter, it has caught the attention of the global audience who is now getting involved in the activity of either minting the NFTs or actively trading them.

Read More: Crypto NFT & Dark Age

Minting Crypto NFT Royalties & Other Benefits

If we consider the aspect of minting crypto NFTs, the process is quite simple.

  • You can approach any NFT gateway or NFT marketplaces where you can place your art as NFT for a nominal amount.
  • Alternatively, you shall need the assistance of a programming developer to mint your art as an NFT, albeit for a small fee. Afterward, you can place the acquired algorithm code on the blockchain to make your art globally accessible.

Artists who are only beginning to enter the world of NFT or the art industry may find the fees higher. However, compared to being exploited mainly out of the royalties, as it often occurs, it’s only marginal.

Understanding Crypto NFTs Royalties

To comprehend the different ways of being rewarded to the maximum by minting your art as a Non Fungible Token, you shall need to understand the basics of ownership of NFTs as an NFT creator.

NFT royalties
  • The artist is the creator of the piece and owns its copyright. (When the hosting artist has created the work)
  • The buyer of crypto NFT(s) will obtain its ownership certificate(s) on the blockchain, which will also list previous owners if any.
  • The crypto NFT platforms will demand a fee for hosting/selling the token, which is usually added to the sale price by the seller.
  • The NFT can carry proof of ownership and copyright but only if stated in the certificate. Meaning, the buyer does not own the copyright upon buying NFT unless otherwise indicated.
  • NFT Royalties are not offered by default on the sale of your token. Only limited platforms allow gaining NFT royalties on sold NFTs.

Choosing the Best NFT Selling Or Minting Platform

Platforms that offer to mint the NFTs may not necessarily also be marketplaces and vice versa. It is also possible that some marketplaces do not allow public hosting, or they are limited to artist-only invites. Furthermore, most platforms may or may not require you to verify your identity before hosting your NFTs.

For all such scenarios, it is crucial to consider which NFT marketplace serves you better value and offers you better chances of selling your NFTs. The few primary benefits of minting your artwork as NFTs allow it to gain global exposure and earn NFT royalties from its sale. Both of these benefits aren’t common when selling art through traditional means.

  • Most platforms offer 20% royalties on sale. On Rarible, you can define your royalty percentile.
  • All NFTs bought from Rarible can be sold on OpenSea and other marketplaces. Still, royalties are currently non-transferable from platform to platform.
  • The number of times your NFT exchanges hands, you will receive the royalty, as long as these transactions occur within the same platform.

If you consider these key points, opting to mint your work as NFTs on Rarible seems ideal. However, the chances are that someone might have beat you to it.

Preventing Ownership Conflicts

Since most platforms do not perform identity verification and allow public hosting in exchange for a small fee, your artwork may possibly already exist on the online retail NFT market.

Other users may have hosted your work without your permission and may have already sold it to prospective buyers. Such scenarios are merely NFT scams. They often arise from conflicts over the copyright-ownership of the work or due to the artist’s anonymity regarding their work being mined into crypto NFT.

While the market is cracking down on such practices, it presently is the artist’s role to ensure that their work isn’t being scammed off of them. Naturally, such practices also make the artist lose NFT royalties. Thus, here’s what you can do to prevent such conflicts.

  • Define terms of ownership clearly and the collateral for breaching these terms.
  • Actively watch out for the listing or sale of your art over NFT marketplaces.
  • Joining a network of artists will help you stay updated with the NFT market.
  • Allowing your NFT to be sold further via transferring limited rights is better than retaining all of them to yourself.

Avoiding Crypto NFT Art Scams

The NFT Art scams also affect the giant organizations that possess the creative rights to their intellectual property like characters, meta-worlds, etc.

crypto scam

A recent example of this instance is when a creator for DC comics was warned to remove the issued NFT creations of Batman & Wonder-Woman. Technically, its fan art can exist but selling them for monetary gains counts under intellectual property infringement. Hence, you can avoid such scams further by doing the following things:

Secure Your Crypto Tokens & Information

It is essential to link a wallet to the NFT platform before placing your work on the NFT market. These wallets can also store cryptocurrencies, and you’d receive the payment for your NFTs in this wallet. Thus, pick a reliable and proven to be secure crypto wallet platform. Ideally, also save your wallet on a piece of hardware as it is comparatively more secure from online hacks.

Using VPNs for making crypto NFT transactions is another crucial measure to prevent giving away your precious data to malicious tools. Additionally, securely store your wallet’s seed phrase and two-factor authentication to ensure maximum security.

Utilize the Copyright Laws

Unless you define copyright laws for your works, they do not exist. Meaning, always make a point to clearly define the ownership of copyright and other intellectual property parameters for your NFT. Approaching a trustworthy auction house can help you with it.

NFT copyrights

At the same time, also consider defining the copyright rules in a manner that allows your NFT to reward you with maximum chances to gain royalties. YOu can do so by ascertaining your NFTs to be limited editions. It can enable the buyer to reproduce it only limited times, or your NFTs can be dissected into limited editions for selling it to maximum parties.

Pick Smartly & Decisively

Similar to how you would traditionally sell your art, consider placing only a few of your creations on the NFT market offered by popular NFT platforms. Choosing the most popular NFT website might be ideal as it allows you to showcase your NFT to a larger audience.

In addition, also make your NFT interactive by adding visualizations or motion into it if possible to make it more attractive, especially when you’re selling a painting. For the case where you may sell music, you can offer special cover versions with unique mixes to grow the chances of selling it to more buyers.

The Takeaway

The NFTs are selling hot and ready in the market. However, there are still many aspects of it untethered or undiscovered, like taxes that you might incur on the sale.

Thus, to reap maximum benefits by selling your crypto NFTs, ensure that you follow the practices mentioned above and perhaps also seek out an advisor to guide you better. Doing so can prevent you from being scammed of your NFT royalties and earning prospects.

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