Stakeholders in the country's NFT industry share their insights and tips to survive the sharply declining market.

Winter has come for those breathing and moving in the non-fungible token (NFT) space. Following the downtrend in the cryptocurrency market and the global economic crisis, we have seen NFT sales taking a deep plunge and encountering its biggest bear market in history. 

This dire situation also impacts NFT creators in Indonesia. 

"It's been [a] drastic [fall]," Addien Fachruroji, NFT creator and member of the Indonesian NFT community (IDNFT), said during a phone interview with The Jakarta Post on Nov. 18. "[Before the bear market], creators working full-time on NFTs could easily earn two to three times Jakarta's fresh graduate's salary each month. But now, it's been a 90 percent drop." 

Prices of NFTs have indeed been dropping 70-90 percent since mid-year.

The blue-chip NFT project (NOUN) used to sell at 90 ETH (approximately US$288,000, 1 ETH = + $3,200 in 2021). But now, the floor price of these pixel-art NFTs is around 30 ETH (roughly $33,000, 1 ETH = + $1,100 today). 

Another famous project, World of Women, is now priced at around 1.5 ETH (or equivalent to $1,650 today), a far cry from its record selling price of 260 ETH (approximately $615,900 in January 2022).

"A lot of people are losing faith in blockchains now," Ruanth Chrisley Thyssen, sound designer, NFT builder and founder of the NFT community Metarupa, said during a phone interview on Nov. 23. "Many [NFT collectors] are deciding to quit, sell their collections and pull out their money." 

Besides the current bearish market, this loss of faith is also triggered by the recent FTX crash. 

"The FTX [crash] has made this bear market much worse," Thyssen said. 

Adding salt to the wound, the widespread prediction that the world will enter a massive recession in 2023 also spooks many collectors. 

Glimpse of hope

But thankfully, only some have lost their faith in the ecosystem. 

On Nov. 24, a Bored Ape Yacht Club #232 was sold in the secondary market for a whopping price of 800 ETH. 

A lot of big corporations are also announcing their new projects on the blockchain. 

In mid-November, the famous American footwear brand Nike announced its Web 3.0 platform, .SWOOSH allows users to buy, sell and trade virtual Nike items. 

Within the next few days, their competitor Adidas also launched their Virtual Gear collection on the metaverse. 

"Hundreds of big brands are building new projects on Web 3.0 these days," Thyssen said. "So, it means [these corporations] still trust the ecosystem." 

Another breath of fresh air in this lonely situation is that Meta has expanded NFT display options on Facebook and Instagram to more than 100 countries, including Indonesia, since August. 

And reportedly, Meta is also testing a new NFT Marketplace feature that will allow creators and collectors to sell and buy digital assets on their social media apps. 

"This is very interesting as it allows for new potentials to grow the ecosystem," Arief Witjaksana, founder of Superlative Secret Society (SSS), a team of NFT creators, said during a talk show in Art Moments Jakarta on Nov. 6. 

"With the display feature on Meta, many people will be able to learn and understand more about NFTs," Arief said. "And a marketplace on social media will also allow for mass adoption." 

TechInsight360's Q2 2022 NFT Survey predicts that the NFT industry in Indonesia will grow by 50.8 percent every year and reach a valuation of over $2.3 billion this year. 

"The future of NFTs in Indonesia is very bright," Jivan Tulsiani, head of marketing of TZ APAC, a blockchain adoption entity supporting Tezos, said when interviewed at the opening of Art Moments Jakarta in Sheraton Grand Jakarta on Nov. 4. "We're seeing more artists making a livelihood from NFTs. And we're seeing brands and organizations using NFTs to increase their target audience." 

Among Indonesian organizations using the Web 3.0 platform to expand their audience is Harian Kompas. From September to December 2022, the daily newspaper will be minting 57 of its most iconic photos on Objkt.com, a marketplace on Tezos. 

"Art, as a creative medium and an industry, has always demonstrated resilience in enduring recessions and economic downturns," Tulsiani added. 

In the meantime, what should Indonesian NFT artists and collectors do to survive the bear market? Here are a few useful tips from the industry's stakeholders. 

Stay productive 

"There's indeed a long, bright future for NFTs in Indonesia," NFT artist Arya Mularama said during an interview at the opening of Art Moments Jakarta on Nov. 4. "Indonesia has the largest number of creators in Southeast Asia. And more and more of our art collectors have started adopting NFTs since last year." 

According to Metarupa's founder, Ruanth Chrisley Thyssen, Indonesian creators are among the most talented. 

"Indonesia sticks like a sore thumb in the international [NFT] space," Thyssen said. "Their works look different with a distinctive Eastern influence and it wows people."

"Indonesian illustrators have a good reputation in the eyes of the world," he reiterated.

With such a promising future and a good reputation in international markets, Indonesian creators should keep on producing. 

"Keep on creating," Arya Mularama advised. "NFT [technology] allows [artists] to market our art directly to a wider international market without having any [physical] exhibitions. And on some platforms, artists can gain up to 25 percent royalties [when collectors resell their works in the secondary market]." 

"It's a plus point for [NFT] artists," the creator said. 

As in any line of work, consistency is key to getting noticed and appreciated. 

"If an artist keeps on working and producing, patrons will definitely notice and appreciate them," Addien Fachruroji of IDNFT said. "Naturally, a community will emerge to support the artist. "

Quality and utility

To enhance the value of their digital artworks, many artists complement their NFTs with real-life utilities. 

In May 2022, Bandung-based indie-pop band Mocca launched digital music cards on Tezos. These cards provide collectors real-world benefits, such as receiving a rare edition of an unlocked song through airdrop and special passes to their online concerts. 

Harian Kompas also offer "phygital" utilities to their NFT collectors, which are a blend of physical and digital benefits. Each of their NFTs is worth 1 point and the collected points can be exchanged for limited-edition merchandise, such as postcards, T-shirts or an acrylic print of the photograph. 

But what about small-time artists with no real-life utilities to offer with their works?

"Art is also a utility," Arief Witjaksana of SSS said. "As long as we can effectively communicate the message behind our pieces, [NFT] collectors and communities will surely appreciate them." 

Addien of the IDNFT community agreed. 

"An art piece without [real-life] utility should improve on its quality, so that it can strongly deliver its message to the people," he said. 

Always play safe

As for new collectors, this bear market is ideal for entering and acquiring their favorite pieces. 

"As cryptocurrencies are down, it's a good moment to make your entry," Arya Mularama said. "Prices are much lower now. And when things get better and the bull run starts, collectors will be able to reap from the price hike."  

However, collectors should practice caution in this current situation.

"Don't put in more than 5 percent of your wealth on crypto [assets], either NFT, tokens, Defi or anything else," Ruanth Chrisley Thyssen of Metarupa said. "That way, we won't have a headache when the crypto [market] goes up and down." 

Thyssen also advised creators to keep their day job besides working on their digital artworks. 

"One of the biggest mistakes is that many NFT creators quit their jobs when they earned much money [from NFTs], without considering the risks in the blockchain world," Thyssen said. 

"Always play safe," he added. "The blockchain technology is safe, but crypto tokens go up and down. Don't give it your all." 

Community support

Indonesian NFT artists can also count on the support of their communities during these hard times. 

"NFT communities in Indonesia are very supportive and help back [artists] up," Addien Fachruroji of the IDNFT community said. "The key is that artists should always stay close and keep communicating with [members of] their community." 

Today, the IDNFT has more than 8,000 members. They habitually like and retweet their artist members when announcing their new projects on Twitter. 

"Our slogan is 'your retweet changes my life'," Addien said with a laugh. "We're doing it in the blockchain style. When our artist friends announce their projects on Twitter, we all help to verify and promote them by liking and retweeting it. It's an effective way to boost their standing." 

In this bleak bear market, community members also encourage one another as they discuss the latest blockchain technologies on Twitter and Discord. 

"Our community keeps us sane," Addien said. 

There are already some predictions as to when this bear market will be over. Some say that a bull run will start in 2024, in line with cryptocurrency's four-year cycle. But many forecast that the current global economic crisis will disrupt the cycle and make this bear market last longer. 

"This bear market is unpredictable," Arief Witjaksana of the SSS said. "But one thing is certain. What goes down will go up again. So, whoever stays strong and commits to building their [intellectual properties] IPs and NFT projects will survive this winter."

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