NFTs
NFT Rout Crushes $1.5 Billion Windfall for Artists as Markets Slash Royalties
- Payouts to NFT content creators sank 98% from a peak in 2022
- Exchanges for NFTs chopped royalty rates amid a bear market
Artwork at the Digital Art Fair in Hong Kong.
Photographer: Lam Yik/BloombergThis article is for subscribers only.
Tension between traders and creators of digital collectibles is deepening amid a painful slump in the market for nonfungible tokens.
The friction stems from moves by top NFT exchanges Blur and OpenSea to slash royalty rates payable to artists when a token’s ownership changes, in the hope that lower costs will lift depressed levels of buying and selling.