In a significant development for the digital art market, Christie’s auction house is reportedly shutting down its dedicated digital art department as part of a broader strategy to integrate digital offerings into its traditional 20th-21st century sales. This move comes approximately one year after industry reports suggested a severe downturn in the NFT space, with 96 percent of NFTs deemed inactive and an average lifespan of just 1.14 years, markedly shorter than standard cryptocurrency projects.
Amid the restructuring, several staff members from the digital art department have faced layoffs, including notable figures such as Nicole Sales Giles, the vice president of digital art. Meanwhile, other employees like digital art sales manager Sebastian Sanchez will remain with the organization, although their roles are subject to change. Following the announcement, Sanchez took to social media to express his gratitude, thanking supporters and reflecting on the accomplishments achieved over the past three years.
In 2022, Christie’s faced a dramatic decline in digital art sales, with only 87 NFTs sold for a total of $5.9 million—an astonishing drop of 96 percent compared to the previous year. This downturn starkly contrasts with its 2021 highlights when digital artist Beeple’s renowned piece, “Everydays: The First 5000 Days,” sold for a staggering $69.3 million. Additionally, the AI-generated artwork, “Portrait of Le Comte de Belamy,” fetched $432,500 at a Christie’s auction back in 2018, marking early success for digital art at traditional auction houses.
Earlier this year, Christie’s ventured into a different facet of digital creativity with its inaugural ‘Augmented Reality’ sale, focused on AI-generated artworks. The sale featured 34 pieces and raised over $700,000, although it sparked controversy as critics called for its cancellation in an open letter.
The downsizing of Christie’s digital art department parallels similar trends within the auction industry, as competitors like Sotheby’s have also scaled back their NFT divisions, reflecting a cautious approach to navigating the volatile market landscape. The unfolding changes at Christie’s underscore the challenges of sustaining dedicated platforms for digital art amidst shifting consumer interests and market dynamics.
