Castello Founder says they are revolutionizing the way to invest in art

Invezz spoke with Sven Wenzel, Founder & CMO of Ethereum-ran Castello Coin, a project aiming to change the way we invest in art. Castello will be the first project of its kind, offering physical artwork, a unique position in the crypto world and the traditional world. 

NFTs have seen a mass increase in mainstream adaptation over the last year. How have you witnessed this from Castello’s perspective?

During the pre-sale phase, we did not feel much of this, as the NFTs are a subsection within the Castello Coins ecosystem. The NFT market is still quite young. Most investors have invested with the excitement of bridging the classic world to the virtual world. We know the art market very well and know the challenges for art collectors. From our point of view, the art market is facing its second renaissance, as it is one of the last areas to go digital.

However, we cannot discount the traction that the art world in relation to NFTs has gained thus far. NFT transactions worth billions of dollars are transacted on a daily basis with several marketplaces and auction houses benefitting from this massive surge. The Castello Coins vision is to help power the model of payment for the highly prized artworks, especially the physical artworks that are being tokenized to leverage the new technology.

There’s still a fair amount of scepticism and critique on NFTs. What are the main reasons for this, and how could these be overcome in the future on the way to mass adaptation?

Every young market has to clean up and find itself in terms of quality. It will be important for the future that there is a certain quality standard. From our point of view, the main problem is safety. Many investors are not aware that larger source files are not stored on the blockchain. The NFT sector will also be about a lot of transparency and trust in the future. That is the most important value from the Castello project.

Additionally, NFTs are being seen by many as a technological or innovation bubble that is fated to burst in the long term. While these critics fail to see the innovative potentials in this tech, they focus on the massive amount that is being paid for some of the most iconic collections in the space such as Bored Ape Yacht Club (BAYC), CryptoKitties, and Beeple’s arts. Away from this valuation, the Castello Coin project was established with the notion that all creative works are high-priced and in time, the scepticism that clouds many critics is billed to clear.

What regulatory aspects stand in the way of mass adaptation? Both locally and on a global scale. What about key events that affect the further rise of this asset class?

The NFT space is still developing is still in its infancy, and many governments are relatively not enthusiastic to bring regulation to this space. Owing to the lack of regulations, ownership rights are beginning to prevail in the digital art and NFT space, and this has the potential of impacting global adoption.

Nonetheless, The key events are that investors enjoy a high level of protection and also have security in terms of their investment assets. The development of modern server structures that have decentralized storage will give a boost to the NFT market, as this will move 100% of the security to the blockchain in a decentralized manner.

You mention some renowned artists are involved in the project, including Niclas Castello. Which other notable artists are involved, and how are they curated?

The first artist is Niclas Castello. We are already in talks with young talented artists. At the current time, we do not share any other artists. We have a very large network in the art field and will use it in the future.

How does Castello differ from other NFT platforms?

Castello is not an NFT platform at this time. Our main task will be to promote young talented artists and make them known through our network and let new art emerge. The marketing channels will be several NFT platforms. What this means is that we are positioning ourselves as the go-to centre for numerous legacy trading platforms in the ecosystem. As the art world expands with more mainstream users onboarded, current marketplaces will realize that they need the kind of support system or technology that Castello has to offer.

Who is your main audience?

Our main audience is art lovers and crypto enthusiasts, from young to old.

Some controversy around NFTs revolves around their carbon footprint, given that many platforms function on the Ethereum network. What is Castello doing to minimize its offset?

We have included the Polygon Protocol in our Castello Coin (Polygon Bridge). The Castello Coin investors can already send the coins via Polygon in a very resource-saving and efficient way. Our future applications will always invest a part in climate certificates. Furthermore, we are always looking to implement future NFT trading and NFT minting in the most resource-efficient way.

What do you think is in store for NFTs in the short-term and long-term future?

I think that NFTs, for one, can save today’s art for eternity. (Secure scans of renowned artworks on the blockchain) and make new art visible outside of monopoly structures via democracy. In the future, more talented artists will manage to be seen. Similar to how musicians have managed to gain notoriety via YouTube.

I also believe that a number of innovative use cases riding on the NFT technology will emerge as many avenues that require data authentication will find it cost-effective to incorporate NFTs. Suffice to say that what is currently being visualized in the NFT space is poised to be the tip of the iceberg when this technology attains its limelight.

What tips would you give to anyone looking to get started on NFTs; which are some key things to know, tips and tricks and which mistakes have you made in the past that newcomers could learn from?

I give the tip to every beginner to buy an NFT, which is not yet so expensive. With it, you make your first experiences and know how the process works. In general, each market is demanding to achieve profits with it. 

For the artists looking to adopt the NFT technology and harness the opportunities therein, my advice is for them to stay original. I have always believed that good artworks always speak for themselves and will be appreciated no matter the obstacle. As a result, it is pertinent for artists to venture into the NFT space with a purpose and not just by following the bandwagon.

In all, I advise every investor to pay attention to reliable and reputable sources. NFTs can only become and remain interesting if there is a community behind them. This community must be maintained and supported permanently.

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