British auction house Christie’s is winding down its dedicated NFT department, folding it into its broader 20th and 21st-century art division, as the global art market continues to contract.
Key Takeaways:
- Christie’s is shutting down its standalone NFT department and merging it into its broader contemporary art division.
- The move comes amid falling global art sales, with auction house revenues down 20% in 2024.
- Critics say the decision reflects outdated business models, not a lack of demand for digital art.
The decision, described as “strategic,” signals a shift in how the 256-year-old firm will handle digital art sales going forward.
Christie’s confirmed the restructure on Monday, stating it will continue offering digital artworks, including NFTs, but without a standalone department.
Christie’s Cuts Digital Art VP as NFT Unit Restructures
Two roles were reportedly cut in the process, including the vice president of digital art, though at least one specialist will remain to handle future NFT sales.
Christie’s had been one of the earliest major players in the NFT space, catapulting digital art into the mainstream in March 2021 with the historic $69.3 million Beeple sale.
It later launched a bespoke NFT auction platform and even ventured into crypto real estate.
The latest move reflects broader pressures in the art world. According to the Art Basel & UBS Art Market Report 2025, global art sales dropped 12% to $57 billion last year, with public and private auction house revenues falling 20% to $23 billion.
Digital art adviser Fanny Lakoubay said in an X post that Christie’s restructuring likely stems from these market dynamics.
“Auction houses can’t justify a whole department when it brings in less revenue than the others,” Lakoubay noted.
“It’s not a great public signal, but auction houses focus on secondary sales — it’s still early for digital art to scale in that model.”
Some, however, see opportunity in the pullback. Lakoubay suggests the shift could open space for primary market development and for onboarding traditional collectors into the digital realm.
NFT collector and Doomed DAO member Benji pointed to flaws in Christie’s model, rather than market weakness.
He criticized the auction house’s high commission rates in contrast with emerging Web3-native platforms like Gondi, which charge zero commission.
“This might be Christie’s Kodak moment,” he said. “One less value extractor means more value for collectors and artists.”
NFT Market Cap Rebounds 40% in August, Now at $5.97B
Despite the shake-up, NFT markets aren’t standing still. August saw a resurgence, with market capitalization surging 40% to $9.3 billion, although it has since cooled.
As of today, the total NFT market cap sits at $5.97 billion, up 2% in the last 24 hours.
Top collections like CryptoPunks, Bored Ape Yacht Club, and Pudgy Penguins have posted modest gains, indicating that interest in digital collectibles remains intact.
As reported, Metaverse platform The Sandbox is undergoing a transformation following the departure of its co-founders and a majority takeover by Animoca Brands.
Co-founders Sébastien Borget and Arthur Madrid have stepped back from operational roles, with over half of the company’s workforce also let go.
Robby Yung, CEO of Animoca Brands, has been appointed as the new CEO of The Sandbox.
The post UK Auction House Christie’s Ends Standalone NFT Unit Amid Art Market Slowdown appeared first on Cryptonews.
https://cryptonews.com/news/uk-auction-house-christies-ends-standalone-nft-unit-amid-art-market-slowdown/
