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.

  1. 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.

  2. 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.

  3. 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.