UX Case Study
LGND Art Auction
Date: June 2021
In this case study, we explore the implementation of an NFT art auction feature within a digital art marketplace. Non-Fungible Tokens (NFTs) have revolutionized the art industry by providing artists with a unique way to tokenize and sell their digital artwork. The addition of an auction feature aims to enhance the buying and selling experience, promote fair pricing, and foster a sense of excitement within the community.
Intro
Following the inaugural presentation of James Jean’s To The Muses, a collection of digital work that aptly represents a signature lexicon from his vast oeuvre, James requested an auction piece to bridge NFT community buyers and traditional art collectors (unfamiliar with wallets and NFTs)
The digital art marketplace, LGND Art, already allows artists to mint and sell NFTs. The executive team identified the need for an auction feature to attract more collectors, create competitive bidding environments, and establish a fair market value for artworks. The objective was to provide a seamless and secure auction experience for both artists and buyers.
Objective
Implement an intuitive and user-friendly NFT art auction feature within the LGND Art marketplace.
Research
Technical Evaluation
Partner with CTO on technical aspects, capabilities, and suitability of a product, system, project, and design solution.
Speed to release new features
Bid verification - proof of funds
ETH gas cost - investigate WRAP solution
CC refunds - finance compliance
Customer Analysis
Deep dive on purchasing behavior across NFT platforms, LGND Art, and James Jean’s catalog. Identified two segmentations:
NFT/web3 collector - familiar with crypto wallet payments, NFT transfers, web3 community hype
Traditional art collector - standard auction bidding model, research artists value, send funds via wire transfer
Drop Performance
James Jean inaugural LGND Art drop
50/50 fiat v. crypto purchases
Rare 3 of 3 $8888 = $26,664
Limited Edition 88 of 88 $888 = $78,144
Time limited SOMA & COIN = $30,000
EST TOTAL: $135,000
Competitive Analysis
Evaluation of UX journey of NFT and traditional art auction houses.
https://foundation.app/
https://www.niftygateway.com/
https://www.christies.com/
https://www.ebay.com/
Expert Interviews
Interviews conducted to obtain expert perspectives, insights, and analysis.
James Jean: Artist
Ty Carter: Artist Council
Ronnie Pervino: Art collector | appraiser
Nathan Rempel: Blockchain Advisor
Awareness
Leverage CRM of LGND Art community. Hype James Jean’s social platforms.
1.2M followers Instagram
193.6K followers Twitter
Pre-Discord community
Requirements
Outreach to existing collectors to get verified before drop
Awareness on-site traffic and social
Integrated the auction feature seamlessly into the existing LGND Art marketplace.
Enable artists to set reserve prices and auction durations for their artworks.
Designed smart contracts to manage the bidding process and enforce rules.
Verify accounts to bid on auction with KYC verification and proof of funds.
UI/UX site update showing verified
Allow collectors to bid on artworks, monitor auction progress, and receive notifications.
Manual off-platform funds transferred
Target winning auction price $75k
Awareness
↓
Bid Flow
Account verified | Bid enabled
↓
LGND Art
↓
Get Verified
Place a bib | Input minimum 10% increase
Successful bid placed
Current bid updated | Bid update enabled
↓
Winner announced🙌
↓
Funds transferred
💸
↓
Mint to collection
✨
Results
✅ Implement an intuitive and user-friendly NFT art auction feature within the LGND Art marketplace.
Simplified qualification process: By replacing automated application KYC with manual verification, we reduced the steps required for users to qualify for bidding on artwork, saving them time and eliminating potential barriers.
Streamlined bidding experience: The UX/UI design for bidding eliminated the need for wallet connection, reducing delays and providing certainty in fund management. This design was inspired by Christie's high-end auction house, ensuring a seamless and secure bidding experience.
Transparent information display: The artwork details page showcased real-time bids, remaining time, and auction progress, keeping users informed and engaged throughout the auction. This transparency contributed to user trust and informed bidding decisions.
Bidding experience: The "bidding war" feature extended the final bids, creating an exciting and competitive atmosphere. This feature encouraged users to actively participate and increased user engagement until the thrilling conclusion of the auction.
✅ Ensure transparency, security, and immutability through blockchain technology.
We use Blockchain to perpetuate work on the ledger, which is public for all to see, and to protect the work’s original creator as well as its legal owner. Wherever that creation goes, its authenticity is always instantly provable, and eternally immutable. Blockchain gives the power to artists and security to collectors.
✅ Generate increased engagement, revenue, and exposure for artists and the platform.
The addition of the auction feature led to a significant increase in user engagement within the LGND Art platform. Artists and collectors actively participated in auctions, creating a vibrant and dynamic marketplace. The auction feature generated higher revenue for both artists and the platform. Competitive bidding often resulted in higher-than-expected prices, benefiting artists financially.
✅ By providing manual white glove treatment for collecting funds and transferring art NFT to the highest auction bidder, LGND ensures that the bidder receives a premium, personalized, and secure experience.
Once the auction concluded, the highest bidder swiftly transferred the funds to complete the transaction. The winner provided their wallet address, ensuring a seamless transfer of the asset. This efficient process facilitated the timely and secure transfer of the NFT to the rightful owner, allowing them to take ownership and enjoy their newly acquired digital asset without any unnecessary delays or complications. James wrote a personal note thanking the winner.
Final Bid
$100,999 USD
54.58 ETH
Raised $25,249 from this collection sent to Endaoment.org to benefit the Stand With Asians Community Fund, which aims to identify and fund grassroots groups and small nonprofits that can make an immediate impact on the AAPI community. An additional 25% of artist proceeds will be donated to James Jean’s alma mater, the School of Visual Arts, to provide scholarships and awards to deserving students.