Abstract

This Article explores the reality and mythology of NFTs in art law and in the art world by unpacking six myths, misconceptions, and poorly understood truths about NFTs that prevent persons, and particularly art law lawyers, from understanding the role NFTs are playing and could play in the art world and beyond. The Article discusses the legal and financial attributes and potentialities of NFTs for artists, galleries, dealers, investors, museums, and, most especially, for lawyers who advise the players in the art world. The six myths or misconceptions are:

-Myth 1: NFTs are artworks.

-Myth 2: NFTs create a false artificial scarcity in artworks.

-Myth 3: The valuation of NFTs is unlike any rational process of valuation for any other artwork or asset.

-Myth 4: Smart Contracts are like regular contracts.

-Myth 5: NFTs have created the ability of artists to receive resale royalty rights.

-Myth 6: NFTs will allow all artists the chance to make serious money from their art.

Document Type

Article

Publication Date

2021

Notes/Citation Information

Michael D. Murray, NFTs and the Art World - What's Real, and What's Not, 29 UCLA Ent. L. Rev. 25 (2021)

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