It’s been a crazy week for cryptocurrency news as one of the world’s largest exchanges, FTX, suddenly declared bankruptcy following revelations of embezzlement of client funds.
This is undoubtedly a blow to the reputation of cryptocurrencies. However, there is still innovation in the space as people push blockchain technology to transform all kinds of industries.
Are you looking for news, tips and market analysis? Then sign up for the Invezz newsletter today.
This also extends to the arts, where NFTs have made an exciting key in the works. NFTs have exploded during the pandemic boom, with multiple sales bringing in millions and millions of dollars. Since then, space has declined, but technology still fascinates many. These include the HOFA Gallery, which recently launched London’s first DAO for art collectors.
I interviewed HOFA-Galerie co-founder Elio D’Anna to find out exactly what that means, what benefits blockchain offers, and how the mood in the industry has changed from last year’s boom.
Invezz (IZ): Can you please explain very simply what this DAO is?
Elio D’Anna (EDA): the The HOFA DAO Membership Program is a decentralized ecosystem that collectively governs the works of 100 leading contemporary artists, influential digital creators, and collectors. The DAO is governed by its members, who give artists and collectors the right to vote on future purchases through NFT membership drops and through their governance token: ARTEM Coin.
IZ: What advantages does a DAO have here compared to a similar consortium you might subscribe to that is not blockchain-based?
FDFA: The DAO provides governance and voting rights in the acquisition of DAO art through a membership program that grants partial ownership of the entire art portfolio and offers our members a link exclusive with each of the 100 artists in the collection.
In addition, the portfolio is actively exhibited in exclusive exhibitions at major art fairs around the world (ART MIAMI, KIAF SEOUL, ISTANBUL CONTEMPORARY, ART DUBAI, etc.) and regularly at each HOFA gallery location.
The DAO also offers a very effective form of profit sharing. Through blockchain membership, artists and patrons can benefit immediately from selling the portfolio through smart contract technology.
Additionally, the DAO will benefit from the HOFA Gallery educational platform by offering a Learn To Earn (L2E) program with additional rewards.
IZ: What larger demographic proportion do you think will be reached through the fractional ownership rights that a DAO could offer?
FDFA: Thanks to the DAO, we will be able to reach a wider audience and target a younger population with low to medium purchasing power. This method would potentially increase the number of contemporary art collectors as the average price range for a collectible is currently between £5,000 and £50,000. Co-ownership is therefore the solution sought to democratize a market that was once reserved for a limited number of people.
IZ: What is the general attitude of the industry – from traditional art galleries, investors and other stakeholders – towards NFTs and other blockchain-related art projects like this DAO?
FDFA: HOFA Gallery’s attitude towards the metaverse remains unchanged: bridging the gap between the world of fine art and new generative and digital art. Since launching its digital platform in 2018, the gallery has accepted cryptocurrencies and is recognized as one of the main catalysts for the promotion and commercialization of digital art.
IZ: Is it daunting to launch the DAO now given what’s been happening in the wider NFT market over the past year?
FDFA: There is ongoing risk due to the daunting nature of the market, but this very condition has cemented the importance of cryptocurrencies and NFTs in creating opportunities for individuals within the community.
Our confidence also comes from our well-established gallery environment, with the additional launch of HOFA.io in recent years as well as the creation of “Kreation”, leading us to believe that we are fully equipped to thrive regardless of market conditions.
IZ: Do you have any other plans to venture further into the blockchain/art world?
FDFA: We look forward to becoming an integral part of the industry and further cementing ourselves in the crypto community. Our efforts will continue to prioritize and focus on our artists and collectors while maintaining first class service for both.