Zilkens' News Blog

Zilkens' News Blog 31 2022

If you want to know what was written about NFTs in the first six months 2022, you can read it at Kobel.

How other business models can be developed with NFTs is shown by the American lawyers of Scott and Scott, who are desperately looking for investors blinded by celebrities who have invested in the bored monkeys and hoped to become even richer immediately. The accusation is that the information material of the providers of the NFTs did not point out the risks and that the whole thing should be regarded and treated like a stock emission. This is supposed to turn into a "class action", which is common in the USA and unusual but starting to be possible in Germany. The claims for damages in the USA are usually astronomical and the legal representatives and the represented parties share the profits 50:50. Since many people who have no idea about art and the art trade are also involved in NFTs, there is a danger that the example will also be followed here. That should make some sellers think twice. Perhaps also Damian Hirst, who would like to destroy all the works he has created for which there are NFTs, in order to turn the NFT into a work. It's just stupid if the gas crisis causes an electricity problem and the use of electricity for mining Bitcoins and NFTs is restricted or even banned. Difficult to control, yes, but also very difficult to damage for the owners of digitally virtual one-time series of numbers.

For those who knew her only professionally, Brigitta Werner, who had made a name as an art expert, especially in tricky damage cases, died completely unexpectedly on July 14th. She had a sophisticated and independent view of the issues that were entrusted to her. Her experience will be missed.

Yoon Suk-yeol, the new president of South Korea, has an ambitious plan: with 3.7 billion USD invested in a fund, he wants to revitalise the domestic art, film, television and music scene to make the country a culturally attractive one. The weakness of Hong Kong provoked by China can thus become a success for South Korea in the art business as well.

For years, we have been pointing out the dangers of cybercrime to our clients and suggesting insurance solutions to protect their capital base. Insurers have to pay more and more claims, which in the meantime also has an impact on premiums. The BVDG is organising a practical day for galleries in Cologne on September 26th. Cyber will also be a topic there.

Unfortunately, it is now finally official: Karin Schulze-Frieling has left the art trade and thus also resigned from her board mandate at the BVDG. She has to do something else in her life and take on other challenges. The art trade is already missing her.

The ZADIK (long: Central Archive for German and International Art Market Research) now has a support association whose first chairperson is the lawyer Yasmin Mahmoudi. She specialises in foundation law, among other things. In April 2016, she was a guest on the panel of the 5th Cologne Art Insurance Talk as part of the 50th Art Cologne, where the topic was depreciation.

The German Stage Association reports that 86% fewer visitors went to theatres in Germany, Austria and Switzerland in the 2020/21 season than before Corona. In percentage terms, this is slightly more than the German museums, which had to cope with a 70% decline. What is shocking, however, are the very divergent orders of magnitude - despite all the shortcomings in the statistics. 2.56 million people went to the theatres and opera houses, 33.6 million to the museums.

Salzburg has opened its festival and the galleries there have put together a collection that is worth the trip in addition to " Jedermann" and other art delights. Ropac is showing a very impressive new series of works by Sean Scully and at Salis there is an almost museum-like compilation of 20th century collages. If you have enough time, you can go hiking in the surrounding mountains and accidentally meet the Austrian President van der Bellen, who can enjoy nature without any bodyguards.

We wish you a culturally eventful week with many highs for those who are currently defending our freedom.

Yours

Stephan Zilkens and the team of Zilkens Fine Art Insurance Broker GmbH in Solothurn and Cologne