Christie’s Ditches NFTs, Bets Big on Traditional Art Again

Christie’s has announced the closure of its digital art department, signaling a strategic shift as the NFT market continues to face significant challenges. The decision, which saw the departure of Nicole Sales Giles, the auction house’s vice president of digital, was confirmed by both Sales Giles and a Christie’s spokesperson to Now Media. The spokesperson stated that Christie’s had made “a strategic decision to reformat digital art sales,” and that such works will now be included within the broader 20th- and 21st-century art category [1].

The move follows the appointment of Christie’s new CEO, Bonnie Brennan, in February and reflects broader industry trends. The NFT sector, once a booming frontier for digital collectibles and art, has experienced a sharp decline in activity and investment. This downturn contrasts sharply with the market’s high point in 2021, when Christie’s set a record by selling Beeple’s Everydays: The First 5000 Days for $69.3 million. That auction, the first NFT sale by the house, played a key role in sparking the NFT boom [1].

However, the NFT market has since undergone a dramatic slump. In 2022, Christie’s reported just $5.9 million in NFT sales, representing a 96 percent drop compared to the record $238.7 million in NFT sales from 2021. The decline has continued into 2024, with reports indicating that 95 percent of NFTs have become effectively “dead,” meaning they trade at negligible volumes or have no buyers. Additionally, the average investor in NFTs has faced an average loss of 44.5 percent on their investment [1].

Christie’s is not the only auction house navigating these market challenges. Its primary competitor, Sotheby’s, has also made significant cuts in its NFT and Metaverse divisions, reducing staff from a larger team to a skeleton crew of just three key personnel. These include Michael Bouhanna, vice president and head of digital art and NFTs, as well as presale coordinator Davis Brown and another unnamed staffer. Such reductions indicate a broader industry recalibration, as traditional auction houses reassess their engagement with the NFT ecosystem [1].

The closure of Christie’s digital art department does not mean the company will stop offering digital works, but rather that it will integrate them into its traditional art categories. This shift reflects a return to core strengths and a strategic realignment amid uncertain market conditions. As the art world continues to grapple with the long-term viability of NFTs, Christie’s decision underscores a growing trend of risk mitigation and operational consolidation in the face of declining demand and investment [2].

Source:

[1] Christie's Reportedly Closes Digital Art Department (https://www.artnews.com/art-news/market/christies-reportedly-closes-digital-art-department-1234751156/)

[2] Christie's winds down digital art department as its NFT ... (https://cryptobriefing.com/christies-beeple-nft-sale-closure/)