Introducing Open Edition NFTs

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Open Edition NFTs have caught fire in recent weeks.

While there are many that made the headlines for their record volumes and prices, a good number of projects have also fizzled out.

So, what gives?

Are Open Edition NFTs the next big thing? Or are they simply an unsustainable-meta you should stay away from?

Read this article, and you be the judge!

What are Open Edition NFTs?

Open Edition NFTs are a novel form of NFTs that have been shaking up the world of NFTs in recent weeks. Their unique difference lies with their quantity and how they are distributed.

Unlike traditional NFTs that have a fixed cap, Open Editions are typically only limited by time and become large editions once the time limit expires. The cost to own one of these unique pieces is also usually either free or cheap.

The proliferation of these types of NFTs are in large part due to growth of platforms such as Manifold and Zora. These platforms offer a trusted and secure place for collectors to buy and sell.

More importantly, they make it easy for even non-technical artists to create and sell their own drops, adding a new level of autonomy and excitement to the world of NFTs.

Some of the most sought-after Open Edition collections include VV Checks, The Collector, Money Printer, and Forever Mart. The popularity of these collections has reached new heights.

Notably, Ness Graphics raised over 1,400 ETH in his Open Edition mint, surpassing the likes of Bored Ape Yacht Club and Doodles’ mints. Beyond mint day hype, VV Checks, for example, has a market cap of over 9,000 ETH.

The Rise of Open Editions Explained

Open Edition NFTs offer a new and exciting way for artists to connect with fans and collectors.

For emerging artists, Open Editions provide a platform to help them increase exposure and build awareness of their work. Established artists can also benefit by using Open Editions as a fundraising tool, or to create more accessible pieces for a wider audience.

Meanwhile, collectors get a chance to own a piece from the artists they admire, but whose work might have usually been inaccessible.

With a large supply and audience, artists can use these types of NFTs in innovative ways to their advantage.

Artists can use these Open Editions to reward holders with exclusive access to future collections. Many artists also keep their audience engaged through the use of burn mechanisms and gamification.

Taking a wider perspective, Open Editions simply put more power back into the hands of artists and minimise the obstacles between them and their potential collectors.

Potential Pitfalls of Open Editions

Despite the excitement and growth surrounding Open Edition NFTs, it is important to keep in mind that over the long term, most large editions are likely to trade downwards and become illiquid.

This is simply due to the short attention span in the space, coupled with the huge supply of these collections and their limited long term developments.

Only a select few projects will maintain their value due to the brand name of the artist or innovative game mechanics such as burns. These, however, might be few and far between.

Burn-based editions may not be sustainable in retaining attention over the long run, while there are only a small number of truly established artists in the space.

Additionally, bots typically pose a challenge for free Open Edition mints, potentially capturing a significant amount of value that would have gone to true fans.

It is also important to note that current market capitalisation of Open Edition NFTs may be overinflated and unsustainable. As a collector, it is best to compare market caps of other projects to derive a relative value of the collection before jumping in.

Overall Sentiment

When it comes to collecting Open Edition NFTs, it is important to keep the focus on the art itself.

Collectors should not expect specific utility or price gain over time, but instead should collect it because they love the art, respect the artist, or support their vision. The main intention should be to buy the NFT "for the art."

On the other hand, artists should consider how Open Editions can fit in the trajectory of their entire career and business, beyond simply as a means of fundraising.

By prioritising the art and the creative vision, both artists and collectors can ensure a more meaningful and fulfilling experience with open edition collectibles.

To close, here’s an insightful framework to use to think about Open Editions from Punk 6529:

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