Auction house Christie’s has decided to close its standalone NFT department, folding these sales into its broader sales of 20th and 21st century art.
Closure of the NFT Department
Auction house Christie’s has announced the closure of its NFT department, which follows a recent 12% drop in global art sales. The decision also resulted in the layoffs of two staff members, including the vice president of digital art. One digital art specialist will remain to oversee sales.
History of NFTs at Christie’s
Christie’s played a pivotal role in legitimizing NFTs as a form of fine art, most famously selling Mike 'Beeple' Winkelmann's 'Everydays: The First 5000 Days' for $69.3 million in March 2021. In 2022, Christie’s launched a dedicated NFT auction platform and even created a crypto-only real estate team.
Critics' Perspectives on the New Approach
Some experts criticize Christie’s decision, arguing that the commission model charging up to 30% on NFT sales was unsustainable, especially compared to zero-fee platforms. NFT collector named Benji suggested this could signal a potential 'Kodak moment' for the auction house.
The closure of the NFT department at Christie’s may indicate changes in the perception of digital art, while also opening up opportunities for the primary market for digital art to grow.
