Auctions are a popular and proven method for film, music and entertainment artists to successfully sell out their NFT collection drops at the best price possible.
The trend is changing on how exactly to do this. NFT marketplaces are using the Dutch auction technique more often. This technique is different from the traditional selling method used by auction houses.
With a regular auction, the opening price bids start low and progress higher when buyers willing to pay a higher price for the same item make the bids. The final price is determined when the highest bid is made. At which point, the item is sold to the highest bidder.
With Dutch auctions, everything is reversed.
Distribution of a NFT collection needs to be fair and random. Prices start very high and then slowly drop at predetermined time intervals, such as 10 or 20 minutes.
As the tap on price tag starts dripping, collectors snatch up NFTs. There is usually a predetermined floor price. Rarity is based on provided price levels and mints in the collection. The lower the price, the higher the risk is of missing out.
Artists want to sell out at the end of a Dutch auction.
Dutch auctions are available to everyone.
Cereal Club recently sold out its whitelist collection of 10,000 NFTs just 24 hours using the Dutch auction strategy. The success came as the original Dutch auction price of 1 Ethereum was slashed by 50%.
Even with a hefty mint price, the RPG game Pixelmon raised $70 Million in primary sales using a Dutch auction strategy.
Even traditional auction houses have caught up with the NFT fever. The Christie’s and Sotheby’s houses recorded the top sales so far, including the Beeple’s digital art, which sold for a massive $69 million at Christie’s in March 2021.
What if we could help you build that fanbase?
Fans create buzz. Fans want to be a part of the creative process.
If artists and filmmakers engage their community in inclusive ways, they may have a better road taking their idea from inception, to reality.
Mogul wants to help artists shine.