Art

What's an NFT? Blockchain technology poised to move beyond art world – The Record (New Westminster)

Published

3 years ago

March 26, 2021

TORONTO — The recent auction of an artwork has created a stir in the art and tech worlds, and not just because of the US$69.4-million final bid it fetched.

“Everydays: The First 5,000 Days,” a digital collage by artist Beeple was the first non-fungible token (NFT) item to be auctioned at Christie’s. NFTs — which are essentially a tool that uses blockchain technology to provide proof of ownership of a digital asset such as an image, audio clip or a tweet — have gained traction in the art world due to the benefits they offer to creators, such as authenticity guarantees and prompt payment. However, potential applications for NFTs go far beyond the creative class.

While NFTs operate on the same blockchain ledger technology as cryptocurrencies such as Bitcoin, there are major differences between them. While one bitcoin is interchangeable with another (or fungible), each NFT represents a unique asset.

One aspect that makes NFTs so valuable is the sign-off from the artists themselves, says Vandana Taxali, co-founder and chief executive of startup Artcryption in Toronto.

An NFT allows an artist to create an official registry for the “first” version of a work they release, Taxali says. In theory, no matter how many times a song is streamed online, the owner of the song’s NFT has the original, digital authentication. Like any collectible, the story is key: A dress worn by a celebrity in a movie can be auctioned off for thousands, while the same dress off the rack cannot. Similarly, artists can also register their earlier sketches or notes that give the backstory of their art as NFTs.

Taxali gives the example of her brother, who is an artist. His original work is likely to be the most expensive, because only one exists. Then, he might do a limited edition of 100 prints, but the original work remains the most valuable, just like a poster of Vincent van Gogh’s Starry Night is incomparable to the original canvas.

Canadian artists have not missed out on the excitement. Musician Grimes sold NFT projects for US$6 million earlier this year. Rock band Arkells tweeted encouragement to a photographer to turn an image of their performance into an NFT.

Taxali says the blockchain system that underlies NFTs can also be used to create “smart” contracts that automatically pay royalties to artists.

NFTs are part of a blockchain ledger that cannot be altered, says Taxali, who is a lawyer by training. That means that if NFTs are adopted widely as a way to register ownership rights, the blockchain ledger could fill in holes that currently exist in government intellectual property registries, which can be expensive and difficult to navigate, she says.

NFTs also have potential uses beyond art, but many are still experimental, says Chetan Phull, a lawyer at Deloitte Legal Canada LLP in the national data privacy and cybersecurity group. However, he says there are also some significant hurdles to their widespread adoption.

While the blockchain leger itself is designed to be immutable, Phull says the systems that allow access to NFTs must also have good cybersecurity. There are also questions about how laws will treat NFTs when it comes to taxes, securities rules and even concepts like “squatters’ rights,” he says.

Toronto-based digital artist Krista Kim recently released an NFT light sculpture artwork called “Mars House”, which includes digital files for a “house” designed by Kim, meant to be viewed as an augmented reality experience with music. An NFT was a fitting choice to auction the work, says Kim, because both augmented reality and NFTs reflect the changing ideas around assets in a digital world.

The NFT process is also a practical one for Kim to make a living as an artist, after being fleeced by middlemen and galleries in years past. Kim says the NFT auction was “simple” and resulted in immediate payment that will kick in automatically each time “Mars House” is bought or sold in the future.

“The intermediaries in the market would take 50 per cent of a sale of an artist’s work. Therefore there’s very little capital left to actually give back to society and for the community to benefit from the artists’ creative work,” says Kim.

“In this case, the artist is given 90 per cent of the proceeds. The collector is also directly connected to the artists. So, you can actually become collaborators.”

This report by The Canadian Press was first published March 25, 2021.

— With a file from The Associated Press

Anita Balakrishnan, The Canadian Press

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Art

Calvin Lucyshyn: Vancouver Island Art Dealer Faces Fraud Charges After Police Seize Millions in Artwork

Published

7 days ago

September 13, 2024

Harry Miller

In a case that has sent shockwaves through the Vancouver Island art community, a local art dealer has been charged with one count of fraud over $5,000. Calvin Lucyshyn, the former operator of the now-closed Winchester Galleries in Oak Bay, faces the charge after police seized hundreds of artworks, valued in the tens of millions of dollars, from various storage sites in the Greater Victoria area.

Alleged Fraud Scheme

Police allege that Lucyshyn had been taking valuable art from members of the public under the guise of appraising or consigning the pieces for sale, only to cut off all communication with the owners. This investigation began in April 2022, when police received a complaint from an individual who had provided four paintings to Lucyshyn, including three works by renowned British Columbia artist Emily Carr, and had not received any updates on their sale.

Further investigation by the Saanich Police Department revealed that this was not an isolated incident. Detectives found other alleged victims who had similar experiences with Winchester Galleries, leading police to execute search warrants at three separate storage locations across Greater Victoria.

Massive Seizure of Artworks

In what has become one of the largest art fraud investigations in recent Canadian history, authorities seized approximately 1,100 pieces of art, including more than 600 pieces from a storage site in Saanich, over 300 in Langford, and more than 100 in Oak Bay. Some of the more valuable pieces, according to police, were estimated to be worth $85,000 each.

Lucyshyn was arrested on April 21, 2022, but was later released from custody. In May 2024, a fraud charge was formally laid against him.

Artwork Returned, but Some Remain Unclaimed

In a statement released on Monday, the Saanich Police Department confirmed that 1,050 of the seized artworks have been returned to their rightful owners. However, several pieces remain unclaimed, and police continue their efforts to track down the owners of these works.

Court Proceedings Ongoing

The criminal charge against Lucyshyn has not yet been tested in court, and he has publicly stated his intention to defend himself against any pending allegations. His next court appearance is scheduled for September 10, 2024.

Impact on the Local Art Community

The news of Lucyshyn’s alleged fraud has deeply affected Vancouver Island’s art community, particularly collectors, galleries, and artists who may have been impacted by the gallery’s operations. With high-value pieces from artists like Emily Carr involved, the case underscores the vulnerabilities that can exist in art transactions.

For many art collectors, the investigation has raised concerns about the potential for fraud in the art world, particularly when it comes to dealing with private galleries and dealers. The seizure of such a vast collection of artworks has also led to questions about the management and oversight of valuable art pieces, as well as the importance of transparency and trust in the industry.

As the case continues to unfold in court, it will likely serve as a cautionary tale for collectors and galleries alike, highlighting the need for due diligence in the sale and appraisal of high-value artworks.

While much of the seized artwork has been returned, the full scale of the alleged fraud is still being unraveled. Lucyshyn’s upcoming court appearances will be closely watched, not only by the legal community but also by the wider art world, as it navigates the fallout from one of Canada’s most significant art fraud cases in recent memory.

Art collectors and individuals who believe they may have been affected by this case are encouraged to contact the Saanich Police Department to inquire about any unclaimed pieces. Additionally, the case serves as a reminder for anyone involved in high-value art transactions to work with reputable dealers and to keep thorough documentation of all transactions.

As with any investment, whether in art or other ventures, it is crucial to be cautious and informed. Art fraud can devastate personal collections and finances, but by taking steps to verify authenticity, provenance, and the reputation of dealers, collectors can help safeguard their valuable pieces.

Art

Ukrainian sells art in Essex while stuck in a warzone – BBC.com

Published

3 weeks ago

September 2, 2024

Harry Miller

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Ukrainian sells art in Essex while stuck in a warzone BBC.com

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Art

Somerset House Fire: Courtauld Gallery Reopens, Rest of Landmark Closed

Published

1 month ago

August 18, 2024

Harry Miller

The Courtauld Gallery at Somerset House has reopened its doors to the public after a fire swept through the historic building in central London. While the gallery has resumed operations, the rest of the iconic site remains closed “until further notice.”

On Saturday, approximately 125 firefighters were called to the scene to battle the blaze, which sent smoke billowing across the city. Fortunately, the fire occurred in a part of the building not housing valuable artworks, and no injuries were reported. Authorities are still investigating the cause of the fire.

Despite the disruption, art lovers queued outside the gallery before it reopened at 10:00 BST on Sunday. One visitor expressed his relief, saying, “I was sad to see the fire, but I’m relieved the art is safe.”

The Clark family, visiting London from Washington state, USA, had a unique perspective on the incident. While sightseeing on the London Eye, they watched as firefighters tackled the flames. Paul Clark, accompanied by his wife Jiorgia and their four children, shared their concern for the safety of the artwork inside Somerset House. “It was sad to see,” Mr. Clark told the BBC. As a fan of Vincent Van Gogh, he was particularly relieved to learn that the painter’s famous Self-Portrait with Bandaged Ear had not been affected by the fire.

Blaze in the West Wing

The fire broke out around midday on Saturday in the west wing of Somerset House, a section of the building primarily used for offices and storage. Jonathan Reekie, director of Somerset House Trust, assured the public that “no valuable artefacts or artworks” were located in that part of the building. By Sunday, fire engines were still stationed outside as investigations into the fire’s origin continued.

About Somerset House

Located on the Strand in central London, Somerset House is a prominent arts venue with a rich history dating back to the Georgian era. Built on the site of a former Tudor palace, the complex is known for its iconic courtyard and is home to the Courtauld Gallery. The gallery houses a prestigious collection from the Samuel Courtauld Trust, showcasing masterpieces from the Middle Ages to the 20th century. Among the notable works are pieces by impressionist legends such as Edouard Manet, Claude Monet, Paul Cézanne, and Vincent Van Gogh.

Somerset House regularly hosts cultural exhibitions and public events, including its popular winter ice skating sessions in the courtyard. However, for now, the venue remains partially closed as authorities ensure the safety of the site following the fire.

Art lovers and the Somerset House community can take solace in knowing that the invaluable collection remains unharmed, and the Courtauld Gallery continues to welcome visitors, offering a reprieve amid the disruption.

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