Subject: Cryptoart.com update

[cryptoart.com]

It's been awhile since I posted here - love that this forum is still cranking.

TLDR: If you own a physical Cryptoart piece, you can now claim a paired NFT token. No deadline, completely optional.

Claim Form: https://docs.google.com/forms/d/e/1FAIpQLScIAU_v50fHmSdZNazQSF1BMHDblZIGQ0KT0VIkST9FMkDofg/viewform?usp=header


What's This About?

We've tokenized the Cryptoart collection to solve a real problem in physical art collecting: aftermarket liquidity.

Most of you may know, we've been working on the next phase of Cryptoart - one that uses tokenization to solve a real problem for collectors of physical art.  Over the years, we published 6,564 physical Cryptoart pieces.  2,431 went unsold (most of the unsold are from a single edition).  We also create a few hundred promotional pieces that are not in the supply count and can’t be tokenized.  We're calling all the historically created art pieces legacy physicals.


Inspiration

Before launching the original Cryptoart brand in 2013, I spent over a decade selling physical art prints online.  For those around in the early Bitcoin days, you may remember the communal need to contribute whatever you could.  For me, it was art and a chance to collaborate with artists on a subject matter I was passionate about.  Merging art with cold storage also gave me a sense of helping the cause (teaching others about self-custody). 

As enjoyable as it was, I couldn't help but get discouraged by the lack of liquidity in the aftermarket.  This is nothing new with art prints. The vast majority of limited editions are single purchase only.  This is fine if you are buying what you like and/or supporting the artist, but most people want some value if they need to sell their collection. At the core of this issue is the friction associated with physical conveyance between collectors: shipping coordination, marketing to find buyers, condition disputes, and authentication concerns. These friction points prevent most physical collectibles from ever developing a meaningful aftermarket.

I believe tokenization/NFTs can fix this.  And no, I'm not talking about 10k PFP projects.  I mean using a token to actually solve a real problem for physical collectors. Specifically, collector-to-collector conveyance.


Introducing "Pairable NFTs"

Pairable NFTs eliminate conveyance friction by allowing:

• Redeemable functionality: NFT holders can redeem for physical pieces
• Unredeemable functionality: Physical holders can destroy the validity of their piece to "unpair" it
• Direct issuer fulfillment: New owners receive physical pieces directly from us, ensuring authenticity

This means your NFT has all the portability and provenance benefits while maintaining the option for physical ownership.  IMO, this is a really big deal for collecting limited editions and reproductions, and I hope others copy the model. You can do a deep dive in our docs.


Your Options as a Legacy Physical Holder

1. Do Nothing

• Your physical piece and Certificate of Authenticity remain valid provenance
• Future buyers can claim the NFT if they want
• Zero obligation or deadline
• Future owners of your physical can claim at a later date

2. Claim and Sell the NFT Only

• Participate in any developing NFT market
• Physical piece remains with you
• Your NFT is "already paired" (no new physical can be created)

3. Claim and Keep/Sell Together

• Sell as a complete set with enhanced digital provenance
• Create permanent "stories" timestamped on the blockchain that will travel to new owners of the NFT.
• Buyer receives both authenticated physical piece and paired NFT

4. Claim and Hold

• Maximum flexibility for future decisions
• Potential trading for new NFTs (we plan to offer this)
• Possible future "unpairing" functionality (would require destroying the physical)

An apology for the extreme delay on this.

This is a personal public apology for those that have waited on this.  I've talked with many of you, some by phone.  When the NFT hype cycle hit, I could have simply minted a bunch of NFTs and dumped them with no real utility.  That just felt like a cash grab. There would have been no relation between each NFT and its physical twin.  I actually began working on the pairable functionality in 2021, but the dev shop I initially hired couldn't get it done.  While things were being drawn out, I got diagnosed with CLL. I had to recalibrate.  Anyway, the journey has been long, but this is the beginning of the fun part.  New releases are otw, and having a tokenized collection has a lot of options.


One last point -

Bitcoin is digital gold and always will be, but Ethereum's tooling and smart contract capabilities made this type of tokenization possible. We're watching Bitcoin L2 developments for potential multichain expansion.

As always, feel free to reach out to me directly at troy at cryptoart.com.


Links:

Website: https://cryptoart.com
Claim Form: https://docs.google.com/forms/d/e/1FAIpQLScIAU_v50fHmSdZNazQSF1BMHDblZIGQ0KT0VIkST9FMkDofg/viewform?usp=header
Docs:  https://cryptoart.gitbook.io/cryptoart

[MoparMiningLLC]

I would be more interested in the physical pieces you have remaining - to see if there are any that I do not have.

edit: these are the ones I know I don't have.




And this one I had never seen, but saw it on your site today for the first time.

[Spokanistan51]

Glad to see an update.
FYI there have been some isolated issues with your security holograms on your physical pieces losing adhesion leaving the private key open to exposure or tampering. Would like to see you offer something similar to a warranty that would allow current collectors to send pieces back for refurbishment and/or a new and improved hologram. Thank you.

[cryptoart.com]

I would be more interested in the physical pieces you have remaining - to see if there are any that I do not have.

edit: these are the ones I know I don't have.

I don't have any of those in the small certs.  I have a few of those images in medium/large.  Please send me an email. 

Also, we're still going to make physical Cryptoart, but the details will be a little different.   

1) Instead of them have a QR code, they will have an NFC chip:



2) They won't have wallets, but instead the ability to pair/unpair with an NFT. 

This means, that even if an image is sold out now, eventually you may be able to find the NFT and have it created. 

And this one I had never seen, but saw it on your site today for the first time.

This was the image we did for the cover of Bitcoin Mag #21.  We never released it, but it will be dropped soon (as an edition of 21).  Again, you be able to make a physical by buying the NFT and redeeming the physical.

[cryptoart.com]

Glad to see an update.
FYI there have been some isolated issues with your security holograms on your physical pieces losing adhesion leaving the private key open to exposure or tampering. Would like to see you offer something similar to a warranty that would allow current collectors to send pieces back for refurbishment and/or a new and improved hologram. Thank you.

Sorry to hear that.  Can you send me an email at troy @ cryptoart.com with a pic of the art piece(s)?   

[MoparMiningLLC]

I wish it was as simple as just buying physical art - I abhore NFT's I abhore Ethereum and pretty much abhore every single side chain shitcoin there is.

To me NFT's are just trash and garbage. If I want a digital, I can right click and save - it equals the same thing.

I will send an email about the missing pieces.

[cryptoart.com]

I wish it was as simple as just buying physical art - I abhore NFT's I abhore Ethereum and pretty much abhore every single side chain shitcoin there is.

To me NFT's are just trash and garbage. If I want a digital, I can right click and save - it equals the same thing.

I will send an email about the missing pieces.

The next step will be to have the NFT already inside the art piece when you buy it.  To sell you just scan it (which destroys the physical), and sell the NFT.  The next person can redeem it for the same numbered physical without concerns over shipping and provenance.  So, we're using tokenization to convey provenance and the right to create a physical.  This is how NFTs should be used IMO. 

Anyway, I'm aware 99% of the world hates NFTs now.  I'm also aware that I'm straddling the line between maxis (that abhor non Bitcoin chains) and degens (that think animal jpgs are cultural relics), but I'm going to try anyway.

[tweetious]

I wish it was as simple as just buying physical art - I abhore NFT's I abhore Ethereum and pretty much abhore every single side chain shitcoin there is.

To me NFT's are just trash and garbage. If I want a digital, I can right click and save - it equals the same thing.

I will send an email about the missing pieces.

The next step will be to have the NFT already inside the art piece when you buy it.  To sell you just scan it (which destroys the physical), and sell the NFT.  The next person can redeem it for the same numbered physical without concerns over shipping and provenance.  So, we're using tokenization to convey provenance and the right to create a physical.  This is how NFTs should be used IMO.  

Anyway, I'm aware 99% of the world hates NFTs now.  I'm also aware that I'm straddling the line between maxis (that abhor non Bitcoin chains) and degens (that think animal jpgs are cultural relics), but I'm going to try anyway.

Could you please elaborate on the bold sections above?

How does the physical artwork get destroyed by just scanning the NFC chip?

How will the new owner of the NFT (after the original owner sells/transfers the NFT) obtain the physical? ("the same numbered physical without concerns over shipping and provenance"). Will you print a new physical artwork with the same number and ship it to the new NFT owner?

In case the original owner of the physical artwork (who sold the nft) keeps the physical as is (without the nft & also without physically destroying the artwork), will there be 2 physicals of the same artwork & number in existence? (one that contains the nft, and one without)?

[cryptoart.com]

Could you please elaborate on the bold sections above?

How does the physical artwork get destroyed by just scanning the NFC chip?

Sure -

The unredeem/destroy processes is actually on the back (similar to legacy Cryptoart). When you pull a sticker off the back it tears the paper and make it really obvious that it can't be sold.

The NFC chip in front give you some quick public info about the art piece.  

How will the new owner of the NFT (after the original owner sells/transfers the NFT) obtain the physical? ("the same numbered physical without concerns over shipping and provenance"). Will you print a new physical artwork with the same number and ship it to the new NFT owner?

Exactly.  After the new owner buys the NFT, they can redeem a new physical (with the same number) at cryptoart.com.  There is small reprint/shipping fee, but our goal is to keep that down.  BTW- this process has been happing in the gallery/print world forever.  If a gallery accidently damages a print, they can get it reprinted from the publisher.   The publisher requires proof that the original was defaced however (usually by tearing the corner).

In case the original owner of the physical artwork (who sold the nft) keeps the physical as is (without the nft & also without physically destroying the artwork), will there be 2 physicals of the same artwork & number in existence? (one that contains the nft, and one without)?

If you sell the NFT without unpairing it (destroying the physical) it remains paired forever.   A new physical can never be created/redeemed.  This is reflected in the NFT's metadata (redeemable = TRUE/FALSE).  You can lookup any NFT in the collection on our supply page and determine if it is redeemable.  


One last point, I know this can be a little confusing.  Soon most of this will be abstracted away.  It's possible to make all this work without the collector even knowing they are using a token/NFT in the background.  It will work like this:

1)

User: Go to cryptoart.com (or any gallery/artist using pairable tokens)
Background:  Prices of the art pieces are dynamically generated based on floor prices of NFTs in the aftermarket.


2)

User:  Buys the art with a credit card or whatever
Background:  Cryptoart.com buys the NFT, updates the metadata (to reflecting it being paired), and ships the art piece.

3)

User:  Enjoys the physical for years without even thinking about NFTs.  However, the user can occasionally scan their art piece and get a real-time value if they were to sell it.

4)

User: Decides to sell, pulls a sticker off the back (destroying it), scans the revealed QR code, and confirms the sale of the NFT.  
Background:  The NFTs metadata is reset, and the NFT is sold at the floor price.  This part is super easy if the user has a web3 wallet, but there is no reason the gallery couldn't sell the NFT and distribute the proceeds to the owner.  Now that the NFT is back in circulation, the process begins again.  


In summary,

- There can be only one physical
- If there is a market for the art/NFTs, the collector can instantly sell
- Collectors never need to worry about physically shipping anything
- Buyers always know they have an authentic art piece in perfect condition, and it is shipped directly from the gallery/artist.
- NFTs are used to help people collect physical art and can be completely abstracted away

This is the way NFTs should be used.   It's what I'm working to build.  Wish me luck!

[MoparMiningLLC]

removing the sticker on the back causes damage to the front?  or just damage on the back?

[cryptoart.com]

removing the sticker on the back causes damage to the front?  or just damage on the back?

Just the back.  I could make it damage the front, but it feels like overkill.  It will be unsellable.  Happy to hear feedback.

[MoparMiningLLC]

removing the sticker on the back causes damage to the front?  or just damage on the back?

Just the back.  I could make it damage the front, but it feels like overkill.  It will be unsellable.  Happy to hear feedback.

I see this an awesome way for me to get cheaper prints, happy to buy ones with sticker damage on back and are missing the NFT lol

My interest is in the art not the NFT - nor do I have interest in selling my collection so damage on the back wont matter to me.

[cryptoart.com]

removing the sticker on the back causes damage to the front?  or just damage on the back?

Just the back.  I could make it damage the front, but it feels like overkill.  It will be unsellable.  Happy to hear feedback.

I see this an awesome way for me to get cheaper prints, happy to buy ones with sticker damage on back and are missing the NFT lol

My interest is in the art not the NFT - nor do I have interest in selling my collection so damage on the back wont matter to me.

Interesting. Thanks for the feedback.

[MoparMiningLLC]

it also makes me think that if we don't go and buy some Ethereum to waste on the NFT's for our current pieces that someone could come along and buy them and thus get our # print and thus "invalidate" our piece of art. Some of these cost thousands of USD.

[cryptoart.com]

it also makes me think that if we don't go and buy some Ethereum to waste on the NFT's for our current pieces that someone could come along and buy them and thus get our # print and thus "invalidate" our piece of art. Some of these cost thousands of USD.

- Possession of the art piece is needed to claim the NFT associated with it.

- If they did, the damage would be limited.  They can't invalidate your art piece.  The physical and CofA is authentication for legacy Cryptoart.

[Hox]

Great to see you've made progress with this, your vision for cryptoart is unique and I'm interested to see how it all works out.

I was a bit disappointed to see that existing cryptoart pieces can't have tradable NFT's made, but it looks like you're considering a solution for this (option 4). Hopefully you can figure out a way to do this because I would love to convert my collection to include the new NFT features.

[cryptoart.com]

Great to see you've made progress with this, your vision for cryptoart is unique and I'm interested to see how it all works out.

I was a bit disappointed to see that existing cryptoart pieces can't have tradable NFT's made, but it looks like you're considering a solution for this (option 4). Hopefully you can figure out a way to do this because I would love to convert my collection to include the new NFT features.

Good to know!  I will make it happen right after we get out of the claim phase.

In this case, feel free to claim an NFT just don't sell it. 

It will be interesting to see how many others do this, because it will reduce the supply of the legacy pieces.