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SuperRare: A Unique Crypto & NFTs Art Market

SuperRare makes it easy to create, sell, and collect rare digital art. SuperRare's smart contract platform allows artists to release limited-edition digital artwork tracked on the blockchain, making the pieces rare, verified, and collectible. Filter the crypto art world's best selling works by artist name, creation type, and year of birth on OpenSea.

SuperRare, which is based in the US, has been active since 2017 and created by John Crain, Charles Crain and Johnathan Perkins-the CEO, CTO and CPO, SuperRare uses the ETH blockchain. They are also the founders of Pixura, the company that builds the crypto collectible technology that runs SuperRare.

1.0 General Questions Asked

How does it work for creators? SuperRare is still in early access, onboarding only a small number of hand-picked artists. You can use this form to submit your artist profile and get on our radar for our full launch next year. Are there marketplace fees? There is a simple 3% transaction fee for all purchases, paid by the buyer. Are there artist gallery commissions? For primary sales, there is a 15% commission (creators receive 85%). For secondary sales, creators receive a 10% commission (aka royalty), providing passive revenue from an artwork if it continues to trade on the secondary market. What about fees/commissions for artworks created during the beta phase? For artworks with a token ID lower than 4,000, there is no transaction fee or commission on primary sales, and a 3% commission on secondary sales. What's the motivation behind secondary market artist royalties? We think the ability to secure a percentage of secondary-market revenue for artists is one of the most revolutionary and exciting capabilities provided by Ethereum smart contracts. It’s analogous to a musician receiving a percentage of sales for a vinyl record issued, say, in the 1960s and still being bought and sold in used record stores today. What's the technology behind SuperRare? SuperRare is a peer-to-peer marketplace for non-fungible tokens (ERC-721 NFTs) built on Ethereum.

2.0 What Makes SuperRare Unique?

With every growing number of SuperRare Participants, we believe that SuperRare will benefit from network effects, which in return, fuel the growth of the marketplace.

In economics, a network effect is the phenomenon by which the value or utility a user derives from a good or service depends on the number of users of compatible products. Network effects are typically positive, resulting in a given user deriving more value from a product as more users join the same network.

A product's or service's increase in value due to a surge in usage, like the internet example above, is called a network effect. And companies can leverage this phenomenon to make their own product or service so valuable that it becomes essential for their entire target market to use.

Network effects are commonly mistaken for economies of scale, which describe decreasing average production costs in relation to the total volume of units produced. Economies of scale are a common phenomenon in traditional industries such as manufacturing, whereas network effects are most prevalent in new economy industries, particularly information and communication technologies. Network effects are the demand side counterpart of economies of scale, as they function by increasing a customer's willingness to pay due rather than decreasing the supplier's average cost.

One of the reasons these pieces of digital art are worth so much is the social elements of NFTs. CryptoPunks are the best example of this social aspect of NFTs. Created by Matt Hall and John Watkinson, founders of New York-based software company Larva Labs, these 24×24, 8-bit-style pixel art images have become popular primarily because social media influencers have started using them as display pictures. In other words, the artwork has become a unifying symbol for a community of NFT enthusiasts. That’s made the rarest and quirkiest NFT designs extremely valuable. In fact, payment processing giant Visa recently purchased a CryptoPunk for an astounding $150,000. Marketplaces will benefit from each network dynamics created from the popularity of its existing NFTs onboarded. - GDA CAPITAL.

3.0 Conclusion

SuperRare is on the track to grow because of its network effects. NFTs, or non-fungible tokens, are unique and non-interchangeable units of data stored on a digital blockchain, and in the context of the current day, they’re typically used to represent photos or videos (among other things). In the article “Tech for Future: Why NFTs Will Drive the Digital Economy,” Anshul Rustaggi talks about why NFTs derive value from network effects, depending on mass adoption, just like crypto currencies did back in 2015. Essentially, one must bet on how much “social status” NFTs will actually account for, and invest accordingly into the technology. Rustaggi explains how NFTs actually become “part of the owner’s digital identity” by showcasing a lot about the user, giving insight into their beliefs and views. Super rare with its exclusive and valuable NFTs will benefit from such network effects.

Readings & Sources:

SuperRare | NFT Art | NFT Art Marketplace | Digital Art

SuperRare 💎 (@SuperRare) · Twitter

SuperRare - Collection | OpenSea › collection › superrare

SuperRare Raises $9M to Build the Future of Art Collecting › superrare › superrare-raises-9m-t...

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