TOKEN SUPREMACY

An in-depth exposé of the recent multibillion-dollar surge and explosive crash in the speculative realms of digital art and crypto finance.

New York Times reporter Small dissects the recent history of nonfungible tokens (NFTs) and their significant effect on the investment art community, initiated by the sale of a digital artwork compilation at Christie's in 2021 for $69.3 million. “It was an outrageous sum for digital art—the kind of world record that raises conspiracy theories about the motives of its buyers and sellers,” writes the author. “Suddenly the art market was on the fulcrum of decentralized finance, splitting its weight between the invading crypto billionaires and the ancien régime of traditional art collectors. But auctioneers tipped the balance in favor of the new money, scrambling to find a historical precedent for their new cash cow.” In this sprawling narrative maze, Small profiles a diverse range of digital artists as well as other influential and often shadowy players across the finance, entertainment, tech, and gaming industries. They also expand the context with forays into pivotal movements in art history, a summary of the 2008 financial crisis and the rise of the crypto economy. Throughout, Small sharply critiques the erosion of art collecting's prestige by sellers and investors driven by insatiable greed. “The NFT explosion,” writes the author, “had begun with a deadly symmetry exposing culture’s worst tendencies: toward trustlessness, toward scarcity, toward desperation and sycophancy…criminals took advantage of the zeitgeist and errant entrepreneurs played at expertise.” In their meticulously documented exploration, Small reveals insights hinting at a compelling core story. However, the intricate details and tech-speak will overwhelm many general readers. In the hands of a more seasoned storyteller such as Michael Lewis, the material would resonate with a wider audience.

A well-researched but overly dense account of the impact of NFTs on the art market.