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Why NFTs are taking the art and sport worlds by storm – Global News

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What do Grimes, Taco Bell and the third most valuable living artist on earth have in common? They’re part of a growing list of celebrities and companies that have sold NFTs — non-fungible tokens, which are the latest investment craze.

Canadian musician Grimes recently sold US$5.8 million worth of digital art as NFTs. Earlier this month, Taco Bell sold 25 taco-themed GIFs and images as NFT tokens and they sold out in 30 minutes. But perhaps most famously, the graphic designer who goes by the name Beeple sold his piece titled Everydays: The First 5000 Days on March 11 through auction house Christie’s as an NFT for nearly US$70 million.

Even Elon Musk briefly hopped on the bandwagon Tuesday, auctioning off a techno song he produced about NFTs as an NFT. The highest bid reportedly topped US$1 million before Musk changed his mind, saying it “doesn’t feel right.”


Click to play video: 'Let’s get digital: NFTs skyrocket in popularity'



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Let’s get digital: NFTs skyrocket in popularity


Let’s get digital: NFTs skyrocket in popularity


What are NFTs?

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Non-fungible tokens are, as their name suggests, the opposite of fungible investments such as dollars, common stocks or commodities — which can quickly be quantified and exchanged. NFTs, on the other hand, are unique, like a rare baseball card whose value can’t as easily be determined.

NFTs first came about in 2017 but interest in them has skyrocketed, with Google searches for “NFT” climbing exponentially since the start of this year. One area of particularly frenzied interest has come in the form of NBA Top Shots.

Launched in October 2020, the NBA began offering limited-edition ownership rights to art and video depicting memorable moments in American professional basketball. It is now a market worth more than $280 million and climbing, fuelled by the sale of historic moments including a LeBron James Top Shot, which sold for $258,000 in late February.

Aficionados describe them as modern-day sports trading cards. Toronto-based tech entrepreneur Sheetal Jaitly is among its fans.


Sheetal Jaitly says his Top Shots NFT collection has increased in value by 1,100% in a matter of months.


Photo supplied.

“If you ever collected hockey cards or baseball cards, right away you’ll get it. For people who never found value in those things, they probably won’t get it. In the NFT world, you’re owning a piece of history, essentially,” he told Global News.

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Jaitly’s dream collectible would be the NFT for Kawhi Leonard’s buzzer-beating Game 7 shot from May 12, 2019. He says it’s a moment that “every Raptors fan remembers because it’s been stitched into our brains.”


How do NFTs work?

The vast majority of NFTs are part of the Ethereum blockchain, which is powered by Ether, the world’s second-largest cryptocurrency next to Bitcoin. Most NFTs must be purchased with Ether, though there are seamless ways to do this online using a card, which will charge you your local currency through third-party services.

The head-scratcher for non-NFT aficionados is that the buyer is purchasing something that they’ll never be able to hold and that, in the case of popular memes or videos online, is viewable by anyone with access to the internet. What you’re purchasing isn’t the item, rather it’s the proof that you own a limited-edition digital asset. This proof is verified and imprinted on the blockchain, the technology that underpins cryptocurrencies such as Bitcoin and Ether.

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Read more:
An ‘NFT’ digital image just sold for US$69 million — but what is it?

Jaitly, the CEO of software strategy and design firm TribalScale, has invested in startups that develop NFT technology. He has also personally spent about $500 on NBA Top Shots — an investment he says has ballooned in value by “more than 1,100 per cent.”

“I feel like a kid again. I don’t necessarily have to go to the store and buy all these baseball cards and hockey cards like I did when I was a child. It’s great to see. I just do it off my phone or on my computer, said Jaitly.

Alex Tapscott co-authored the book Blockchain Revolution, and says NFTs have “captured imaginations and taken the world by storm.” He can’t say whether NFTs will hold or explode in value over time, but he says the blockchain technology behind them is here to stay.


Alex Tapscott co-authored ‘Blockchain Revolution,’ which details how the technology behind Bitcoin and other cryptocurrencies could change many industries.


Photo supplied

“There’s irrational exuberance but we’re talking about art, which is something that appeals to people on an emotional level. Maybe they see it as an investment, something that they’ll be able to resell at a price later on. Maybe they love the bragging rights or maybe they love the aesthetics of having the knowledge that they’re the owner of this single asset,” Tapscott told Global News.

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Financial observers suggest the surge in interest in NFTs is propelled by an increase in the amount of time and money people are spending online during the pandemic.

“Even if some of these things turned out to be a little overvalued, that doesn’t take away the value of the underlying technology, which is a really powerful tool for creative industries,” Tapscott said.

© 2021 Global News, a division of Corus Entertainment Inc.

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

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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.

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

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

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

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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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