Dmytri Kleiner on Sun, 14 Mar 2021 22:57:36 +0100 (CET)


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Re: <nettime> what does monetary value indicate? 


I heard y'all like #NFTs

This one comes with a story of p2p gone wrong

https://v.cent.co/tweet/1371180841162932230?s=u_a


On 2021-03-14 19:55, Rachel O' Dwyer wrote:

wow. that story reminds me of the auction of Damian Hirst's For the
Love of God in 2007 (the diamond skull).
it sold for something staggering like $100 million to a private
collector, but the collector was later revealed to be an investment
consortium consisting of Hirst, his dealer Jay Joplin and a third
unnamed party.

On Sun, Mar 14, 2021 at 6:23 PM Felix Stalder <felix@openflows.com>
wrote:


On 14.03.21 14:25, Rachel O' Dwyer wrote:

The article includes a discussion of economic *'signalling' *that

was

prompted by conversations with Ruth Catlow which chimes with

Felix's

questions about what the digital art purchase 'says'.


Doma alerted me to this analysis, and if it's correct, then this is
basically a "pump-and-dump" scheme.



https://amycastor.com/2021/03/14/metakovan-the-mystery-beeple-art-buyer-and-his-nft-defi-scheme


I suspect there is more to it, more layers of scamminess, but so far
the
story goes like this:

The buyer, MetaKovan, and the seller,  Metapurse, are entities
controlled by the same person, Vignesh Sundaresan.

Metapurse is a fund which owns digital art works. It's mission is to
"democratize access and ownership to artwork." Quite a statement to
make
in relation to digital art, but the entire story is full of scammy
rhetoric.

You can buy into this fund, called B20, then you own a tiny portion
of
its art works. You do this by buying special B.20 tokens. The value
of
these tokens reflects some speculative position on the underlying
value
of the art works held by the funds or profits to be made from
selling
these works.

There are 10 million tokens minted. 56% of these are owned by
Metapurse/MetaKovan who thus controls the entire process in terms of
writing to the blockchain. 2% are owned by Beeple himself (oh!). In
December, Metapurse bought Beeple's art work for 2.2 million. On
January
23, Metapurse sold 1.6 million tokens at $0.36 a pop.

After the sale, which greatly inflated the value of the "assets"
held by
the fund, the value of the tokens rose to 23.00 and then fell back
to
16.00. Given that buyer and seller are controlled by the same
person,
the actual costs for the purchase are only the feeds to be paid to
Christie's, some 9 million.

You can do he math yourself, but the profit margins are staggering,
if
Sundaresan manages to to get cash out his own tokens while it lasts.

What I find remarkable is the role of Christie's in generating the
narrative. Auction houses seem to have specialized in this lately,
perhaps they always have. But, remember Sotheby's sold a Banksy work
that shredded itself (Oct 2018). Well, almost shredded. The story
went
around the world, greatly enhancing the value of the work. It's hard
to
phantom that Sotheby's did not examine the art work before hence
realized that there was something hidden in the frame. Or, when
Christie's auctioned off the "Portrait of Edmond de Belamy" in
December
2018. The value is really generated by the story, told by a
blue-chip
auction house.

The fact that all of this is so scammy doesn't seem to matter,
because
it's the money that makes it real, the sheer scale is
self-validating,
even if the money itself is barely real to begin with.

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Dmytri Kleiner

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@dmytri
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