Some collectors purchase crypto art with no intention of selling for years to come, but sometimes it can make sense to capitalize on the growth of a piece’s value. Let’s explore some tips to successfully sell an artwork.
As good as their floor price
The crypto art market has the advantage of being fully transparent, which means an artist’s progression is public knowledge. Every time an artist makes a new sale for an equivalent piece (not including experiments or off-brand work), they update their floor price. In turn, this revalues the price of their previous work that falls under the same category. Collectors should keep track of the floor price of artists they have collected from in the past to benefit from their momentum in case they want to sell. As a rule of thumb, you can use this new floor price as your price target in case of a sale.
Leveraging auction mechanisms
There are multiple ways to approach listing a piece in your collection, each with a different impact on potential buyers. When the platform allows for reserve auctions, you can set a reserve at the price you are looking for or less to encourage bids and create a potential bidding war. You can also use a list price to indicate at what price you would be willing to let go of the piece, setting a clear signal on how you are valuing the piece and the artist’s work. The right solution depends on your desire to sell and the timeframe you hope to respect for the sale.
Communicating your intent to sell
While it is normal that at some point you may want to sell artworks from your collection, you have to be careful on how you voice that interest. Unless you want to sell at all costs, it is usually not wise to communicate it publicly (on Twitter for example), as it might look like you are desperate to sell. Instead, you can look at other collectors of that artist or of similar artworks and connect directly with them. It can also make sense to review the bidding history on other pieces from that artist as those who lost out in the past could be interested in this opportunity.