Exploring the journey of TinyFaces NFT, from Blender art to NFT market challenges and innovative strategies in the evolving digital art world.


The impossible task of a NFT artist


In a [recent post](/blog/how-I-created-a-successful-NFT-project), I touched on the unexpected success of TinyFaces NFT, a project born from my early experiments with 3D art in Blender. As someone who had never sold any art before, the sudden popularity of TinyFaces NFT caught me off guard, presenting me with an intriguing conundrum: what should I do next?

Unlike many NFT projects that boast ambitious, often unrealistic, roadmaps ([road ruse](/glossary/road-ruse)) – think creating games, movies, or offering exclusive access to concerts – TinyFaces NFT started without any roadmap. It was an unplanned journey. This absence of a roadmap initially seemed like a shortcoming, especially when compared to the grand promises of others. However, these overly ambitious roadmaps often felt disingenuous to me, almost like false advertising.

This led me to question the underlying expectations of the NFT community. Is the appeal of NFTs really about the ambitious projects and perks promised, or is it primarily about owning a unique piece of art? As the creator of TinyFaces NFT, I find myself pondering the true essence of what we're offering and what our community truly values.

## Navigating the Drop in NFT Floor Prices

The rapid uptake of TinyFaces NFT brought to light a fundamental aspect of the NFT space: the driving force for many is financial gain, akin to trading stocks. In this world, the key to maintaining value is preventing sales while simultaneously increasing demand and price, enticing more buyers.

Where many participants are looking for quick profits they are also scared of losses. These 'flippers,' as they're known, are quick to sell off their NFTs at the slightest hint of a dip in the floor price. This exact scenario unfolded with TinyFaces NFT. Once everyone had their piece of the collection, the floor price began to waver, triggering a sell-off.

Amidst this frenzy, I found myself unexpectedly at the center of criticism. Despite my focus on creating art rather than selling an overhyped roadmap, the community's dissatisfaction turned towards me when the value of TinyFaces NFT began to decline. This reaction highlighted a stark reality in the NFT world: the artist, often seen as the visionary behind the work, can also inadvertently become the scapegoat in the volatile dance of market dynamics.

## Understanding Wash Sales in NFTs

In my quest to navigate the challenges of TinyFaces NFT's fluctuating floor price, I delved into the practices of other projects. What I discovered was a concerning trend: many were engaging in illegal [wash sales](/glossary/wash-sale) to artificially inflate their NFT prices. This deceptive tactic led buyers to believe they were investing in the next big thing, or 'blue chip' NFTs, only to find themselves holding greatly overvalued assets when the scheme collapsed. A notable example of the consequences of such practices is the [federal class action lawsuit against Logan Paul because of the CryptoZoo scam](https://techcrunch.com/2024/01/04/logan-paul-cryptozoo-nft-buy-back-class-action-lawsuit/).

Today, there's a widespread consensus about the issue of wash sales in the NFT space. Advanced algorithms designed to detect such activities estimate that a staggering 30-50% of NFT transactions back then were wash sales. Even esteemed projects like [CryptoPunks](https://en.wikipedia.org/wiki/CryptoPunks) are suspected of engaging in this dubious practice, with a [single NFT selling for $532 million being claimed to be a wash sale](https://www.bloomberg.com/news/articles/2021-10-29/here-s-a-532-million-nft-trade-that-wasn-t-what-it-appeared).

In response, crypto exchanges have started requiring the reporting of crypto wallet identities to governments, aiding in the crackdown on unscrupulous NFT artists.

Faced with my own project's declining floor price, I was determined not to resort to these deceptive tactics. The dilemma then was: what legitimate steps could I take? Creating a realistic roadmap seemed like a plausible solution but it wasn't something that would turn the floor price around. What they expected was [going to the moon](/glossary/moon-mooning), something that's not possible with limited resources. As I've discussed in [another blog post](/blog/what-taxes-did-I-pay-as-a-NFT-creator-in-the-uk), the unpredictable nature of taxes for creators compounds this challenge. Even with a considerable budget, like $250,000, hiring just a couple of top-notch talents for a year could potentially run the project into the ground.

## Post-Mint Marketing Strategies for NFT Artists

Confronted with TinyFaces NFT's challenges, some suggested I launch massive marketing campaigns, including TV ads, billboards, and social media blitzes, potentially engaging an agency to manage it. However, traditional media advertising, especially in high-traffic areas like the London Tube, can be prohibitively expensive. For example, a billboard campaign with significant visibility in such a location could cost around $60,000 a month. Given the niche nature of NFTs, most passersby might not even grasp the concept, making this a potentially wasteful expenditure.

From my early career experience in a communication agency, I've learned that effective marketing hinges on having a product that people genuinely desire. In the NFT realm that's for many who criticized me a NFT they could sell at a higher value later. The only way to achieve that was by resorting to dishonest and unlawful methods such as wash sales, which I wanted to avoid.

Realizing that a fresh strategy was necessary, I turned to studying other successful projects in the NFT space. However, comprehending the intricacies of the NFT market proved to be a complex task. The market's saturation, coupled with the misleading impact of wash sales, made it challenging to discern effective strategies from mere market manipulations.

Adding another NFT collection like a TinyPet to my portfolio didn't seem like a viable solution either. Such a move could potentially undermine the value of my existing work. More importantly, it felt akin to taking advantage of my audience, which went against my principles. I was committed to finding a path that respected the value of my current work and the trust of my followers.

## Innovative Approaches for NFT Artists in a Dynamic Market

In my search for a way forward with TinyFaces NFT, I was unsure of the best path but resolute in my desire to expand my creativity and showcase my artwork.

This led me to develop a [yearbook page](/yearbook) on my website, where all the artworks were accessible for everyone to view.

To enhance this experience, I dedicated days to rendering all my 3D art in a higher resolution again, enabling people to use them as wallpapers for their phones, watches, or desktops.

![Two smartwatches with digital avatars on display, one with a red strap, the other with a black and tan strap.](/pages/blog/watch.jpg)

I ventured into creating [unique passports](/art/152) for each character in my collection. Additionally, I delved into the world of Instagram filters, importing the hats from my characters, allowing users to virtually 'wear' them.

I created [lottery-based smart contract](https://github.com/maximedegreve/TinyFacesNFT-Contract/blob/main/contracts/celebs.sol) for TinyFaces NFT holders where they could win a [TinyFaces NFTs Celebrity](https://opensea.io/collection/tinyfacesofficial-celebrities). This initiative aimed to create excitement and engagement within the community by introducing the element of chance and the allure of unique artwork.

To further engage the community, I developed a [leaderboard](/leaderboard) system designed to recognize most avid TinyFaces NFT enthusiasts. This system tracked and highlighted fans based on their level of interaction across various platforms, including Twitter, Discord, and NFT marketplaces.

However, by the time I started designing t-shirt artworks based on TinyFaces NFT, interest had waned significantly. I hesitated to encourage people to spend money on these t-shirts, aligning with my ethos of not exploiting my audience. I contemplated sending t-shirts as gifts, but the logistics were daunting. Mass production in one location was cost-effective, but it led to prohibitive shipping and customs fees, especially with a global fanbase. This complexity forced me to abandon these plans, despite the extensive effort put into the artwork.

![Three T-shirts with graphics: left, white with blue 'TO THE MOON' text and astronaut design; center, black with small white astronaut emblem on chest; right, white with red caricatures and Asian characters.](/pages/blog/shirts.jpg)

I still believe there's potential in selling these t-shirts if interest in TinyFaces NFT grows. However, the current low demand makes this idea impractical for the time being. Utilizing Instagram filters to project the designs onto t-shirts could be a novel approach for now, allowing fans to 'wear' the art without buying a physical product.

## Analyzing the Rapid Market Shifts in the NFT Industry

Despite my best efforts to innovate and adapt with TinyFaces NFT, I couldn't help but feel a sense of defeat. My initiatives, though well-intentioned and creative, didn't achieve the desired impact. However, there was a silver lining: the wider community began to realize that the decline in NFT values wasn't solely the fault of creators. This understanding emerged as they witnessed similar trends across almost all NFT projects. Even the largest projects, which had invested hundreds of thousands of dollars in marketing campaigns, secured billboards in Times Square, and ventured into creating merchandise, were unable to stabilize or increase their floor prices.

The once-prestigious label of [blue chip](/glossary/blue-chip-nfts) NFTs rapidly lost its significance as the market witnessed a dramatic devaluation of high-profile collections. Iconic NFTs like the [Bored Ape Yacht Club](https://opensea.io/collection/boredapeyachtclub), originally valued at $450,000, plummeted to just $77,000. [Azuki](https://opensea.io/collection/azuki), which were once sold for $79,000, saw their worth reduced to a mere $10,000. Even exquisite artworks from creators I deeply admire, such as the [Invisible Friends](https://opensea.io/collection/invisiblefriends) series, originally priced at $24,000, faced a stark decline, now valued at only around $800.

This significant downturn in the market not only reflected the volatile nature of NFTs but also challenged the perceived stability and value of so-called 'blue chip' assets within this digital space.

The landscape of NFTs experienced a further setback when Twitter underwent a significant change. After its takeover, the platform's algorithm appeared to be modified to suppress NFT-related content. This development was part of a broader shift in perception and regulation of NFTs. Governments around the world began classifying NFTs as financial products, which led to other major social media platforms like [Meta imposing restrictions on NFT advertising](https://transparency.fb.com/en-gb/policies/ad-standards/content-specific-restrictions/cryptocurrency-products-and-services/). This regulatory shift marked a new era for NFTs, one that posed additional challenges for creators and investors alike.

The debut of [Dall-E](https://openai.com/research/dall-e) in early 2021 introduced an additional layer of complexity to the NFT market. This AI-driven technology blurred the lines between manually created art and art generated through automation. Distinguishing between the two became increasingly challenging.

While Dall-E's emergence wasn't solely responsible for the NFT market's further decline, it certainly played a role in shifting public attention. Just as NFTs had once captured the spotlight as a groundbreaking technology, Dall-E now fascinated audiences with its capabilities. This shift in focus underscored how quickly technological advancements can redirect consumer interest and reshape markets, especially in the realm of digital art and innovation.

## Expanding Horizons: Beyond the Traditional NFT Space

The evolving landscape of NFTs suggests a need to redefine success within this domain, shifting the focus from immediate monetary gains to long-term creative achievements. This perspective aligns NFTs more closely with traditional art forms. Just as one might purchase a print from a favorite illustrator, NFTs should be appreciated for their artistic value. The increase in value of an NFT should be driven by the continuous activity and evolution of the artist across various mediums, ought to be considered a measure of success instead of a minus or plus sign near the floor price.

Recent developments in the NFT world exemplify this shift. Pudgy Penguins, for instance, ventured into the [creation of physical toys](https://hackernoon.com/pudgy-penguins-believes-toys-can-be-the-bridge-from-web2-to-web3), bridging the gap between traditional and digital realms. Similarly, [ClaynoSaurz expanded their universe by launching plushies](https://twitter.com/Claynosaurz/status/1733339721835610306/photo/1). These initiatives represent tangible achievements, reflecting the creative potential of NFTs beyond just their floor prices and trading volumes, which are often subject to manipulation.

For TinyFaces NFT, envisioning a future that diverges from the typical NFT market dynamics seems essential. Instead of constantly worrying about the social dynamics around floor prices, a more sustainable approach would be to evolve TinyFaces NFT into a broader creative identity, akin to renowned creative brands like [SUPERFICTION®](https://www.instagram.com/superfiction.sf/). This shift would focus less on the fluctuating NFT market and more on building a distinctive, recognizable brand or identity.

Achieving this requires enhancing my skills and talents, particularly in areas such as 3D art and software like Blender. Expanding my knowledge in areas like rigging and animation will be crucial to make my characters more appealing. It's about reaching a level of quality and creativity that resonates more broadly, transcending the confines of the NFT space. This direction is not just about artistic evolution but also about redefining the value and appeal of TinyFaces NFT in a way that aligns with successful creative entities.

## Rigging the NFT Characters

TinyFaces NFT originally began as a series of exploratory designs, with the characters not intended to be viewed from multiple angles. This initial approach led to the creation of 3D models that were somewhat limited in flexibility and not conducive to animation.
So in the past weeks I have been exploring how I can reimagine my character as full body models that are can be seen from different angles. This development marks a significant evolution in the TinyFaces NFT project, as evidenced by a 360-degree model demonstration.

[360 degrees model of a TinyFaces NFT](https://storage.googleapis.com/tinyfaces-nft-web/360degrees.mov|https://storage.googleapis.com/tinyfaces-nft-web/360degrees.webm)

In addition to redesigning the models, I've dedicated the past few months taking courses at [CGBoost](https://www.cgboost.com/courses) to enhance my skills in rigging, a process as intricate and challenging as learning a new tool. Rigging, though complex, is incredibly rewarding; once mastered, it allows for dynamic positioning of characters in various poses.

[Leg of a character moving in Blender](https://storage.googleapis.com/tinyfaces-nft-web/rig.mov|https://storage.googleapis.com/tinyfaces-nft-web/rig.webm)

While the rigging process for animation isn't perfect yet, I've shared a sneak peek on Twitter, showcasing the potential of these improvements. The preview features my rigged character set against a cloud backdrop, offering a glimpse into the exciting possibilities that lie ahead for TinyFaces NFT.

![3D-rendered figure with glasses and hat walking on clouds, sporting a black shirt, white shorts, and black shoes.](/pages/blog/clouds.jpg)

## Conclusion

In conclusion, my experience with TinyFaces NFT has been an enlightening blend of artistic growth and challenges. Initially a simple 3D art project, it became a deep dive into the complex NFT world. Despite lacking a traditional roadmap, this allowed a focus on pure art and fan engagement rather than market hype.

The fluctuating NFT market highlighted the fragile balance between artistic vision and investor expectations. My response was to innovate with high-resolution artworks, unique digital passports, and interactive community initiatives, seeking to add creative value beyond mere floor price.

The evolving NFT landscape, shaped by technological advancements and regulatory changes, emphasizes the need for constant adaptation and innovation. Moving forward, the aim for TinyFaces NFT is to further develop in 3D art and animation, making characters more dynamic and versatile.

This journey is about more than floor price success; it's a commitment to creative exploration and redefining success in the NFT space. I'm excited to continue evolving as an artist and enriching the TinyFaces NFT art in this rapidly changing digital art world.


Explore the financial journey of TinyFaces NFT creator, covering tax challenges, crypto management, and VAT implications in the NFT space.


What taxes did I pay as a NFT Creator in the UK


When I began TinyFaces NFT, it was initially an experiment to delve deeper into the [NFT](/glossary/nft) space. I didn't initially consider the tax implications, as my focus was more on the creative and technical aspects of NFTs, particularly around creating a unique [PFP (Profile Picture)](/glossary/pfp) collection.

## Confronting Financial Realities in the NFT World

However, in April 2022, the project unexpectedly sold out, leading me to confront significant financial realities. I found myself with £560k worth of crypto in my wallet, and the tax implications were daunting. At that time, the most expensive NFTs were making headlines, but practical advice on tax management for NFT creators was scarce.

## Seeking Advice on Crypto and Tax Management

Today, there are many guides available, but back then, I started searching online and found only a few articles. I ended up spending most of my time on forums like Reddit, trying to understand how people were handling their crypto. However, I soon realized that these forums weren't reliable sources. Some claimed that governments couldn't trace crypto wallets, but this didn't seem accurate to me because all wallet transactions are publicly visible on [Etherscan](https://etherscan.io). It was clear to me that when you convert crypto into traditional currency like British pounds, a link is established between your wallet and bank account, making it possible for governments to trace the funds and calculate taxes. Even if you [buy something like a Tesla with crypto](https://www.tesla.com/en_gb/support/dogecoin), the fact that the car has to be delivered to someone means there is a traceable link.

## Navigating the Complexities of Crypto Transactions and Law

Back then, there wasn't much information available on how governments were tracking crypto wallets. However, my instinct was correct, as exchanges are now required to share this information with the government. Those who assist in money laundering by [converting crypto into retail vouchers can face legal consequences, including jail time](https://www.forbes.com/sites/digital-assets/2023/08/25/tornado-cash-co-founders-charged-in-the-us-with-more-than-1-billion-in-money-laundering/?sh=475675867b99).

## Expert Advice on NFT and Crypto Management

I had more questions than answers...

A few days later, while having dinner in Italy with my in-laws, I received a message from [Matt DesLauriers](https://www.mattdesl.com) congratulating me on the project's launch. Matt is a friend of a friend, and we often meet at parties in London. I valued his advice because of his success in the generative NFT space with his [Meridian collection](https://monopo.london/work/meridian-book/).

## Tax Implications for NFT Creators

After some messages back and forth, the topic of taxes came up, and Matt advised, "I recommend exchanging 50% or more to fiat right away. If you wait too long holding only ETH, there's a risk that the price of ETH will go down, but you will still owe taxes based on the price of ETH at the time of sale."

I panicked when I realized I had to pay taxes based on the crypto's value on the day of the sale. In the UK, this could mean paying anywhere from 20% to 60% in taxes, depending on your tax situation. That could be around £336k in taxes. If Ethereum were to fall by 50%, I'd only have £280k left but still owe £336k in taxes, leaving me with a loss of £56k.

## Managing Public Perception and Financial Decisions

However, withdrawing the money for taxes wasn't an easy decision. People worry about rug pulls when they buy an NFT, meaning they fear the creators disappearing. So, when they see Ethereum leaving the wallet, they immediately think of a rug pull, and the project loses credibility. Remember, wallets are publicly visible on the internet, so every move is tracked.

Despite the pressure to keep ETH in the wallet, I informed everyone with a TinyFaces NFT that I had decided to cover the taxes and would transfer 75% to fiat that same night to cover them. Thankfully, I had that conversation with Matt because over the next two months, Ethereum crashed by a whopping 30%. Luckily, I withdrew most of it, and by the time it dropped 15%, I withdrew the remaining 25%.

## Seeking Professional Financial Advice

I realized I needed professional help from an accountant and financial advisor.

After sending out a few emails, I quickly found a financial advisor who advised me to deposit the necessary funds for taxes with the [National Savings & Investments](https://www.nsandi.com) (NS&I) of the government. This was because in the UK, only bank deposits up to £85k are government-protected, while NS&I offers full protection. With banks like [Metro Bank](https://www.bbc.co.uk/news/business-67027436) and [Silicon Valley Bank](https://www.theguardian.com/business/2023/mar/17/why-silicon-valley-bank-collapsed-svb-fail) still experiencing failures, I didn't want to take any chances and risk losing the money I need to pay my taxes.

## Challenges in Finding a Knowledgeable Accountant

Finding an accountant was challenging as there weren't many with crypto experience, and some who claimed they did were quickly exposed when I asked NFT-specific questions. Eventually, I found [Alexander Wilson](https://www.linkedin.com/in/a-wilson-325a6911/), an accountant specialized in crypto tax, who explained that there were significant unknowns regarding NFT creation and its tax liabilities. The biggest concern was whether VAT (sales tax) would be due on the sales, potentially adding an additional 20% tax. However, determining VAT for crypto transactions is complicated because IP addresses or credit card information isn't available to determine a buyer's location on the blockchain, and VAT was only due for individuals, not corporate entities.

We had no choice but to reach out to [HMRC](https://www.gov.uk/government/organisations/hm-revenue-customs) through a formal letter for advice. After waiting for six months, we finally received a response stating that HMRC considered NFTs as financial securities stored in a blockchain, and the supply of NFTs would be outside the scope of VAT.

## The Importance of Understanding VAT and NFTs

Please be aware that this may not be applicable to all NFTs, particularly those involving the shipment of physical products such as t-shirts, posters, or paintings. In such instances, location can be established through the shipping address. It's crucial to individually pursue VAT clearance for your specific situation.

## The Ongoing Challenge of Navigating NFT Taxes

I thought I was on track to resolve all my tax concerns, but then my accountant left his firm, leaving me in search of another accountant. After sending many emails, I finally found [CryptoCountancy](https://www.linkedin.com/company/cryptocountancy-ltd/?originalSubdomain=uk) to handle the remaining taxes.

## The Risk of Not Forming a Limited Company

When I began TinyFaces NFT, I didn't establish it as a limited company. This meant that I would have been personally responsible if something went wrong, which was a risk considering that many projects often made unfortunate mistakes, ranging from creating faulty smart contracts to having their social media accounts hacked. In all these cases, the individuals behind the project are held accountable for any losses. Fortunately, nothing detrimental occurred, but in hindsight, not forming a limited company wasn't a wise choice.

## Tax Considerations for Individuals and Limited Companies

Initially, I also regretted not setting up a limited company for tax purposes. However, given that my current tech job and side projects already placed me in the highest tax bracket in the UK, with a 45% income tax rate plus national insurance contributions, opting for a limited company would have meant paying 20% in corporation tax. Nevertheless, dividend payouts from the company would still be subject to an additional 39.35% tax rate in my case. Unless the NFT market continued to thrive, forming a limited company wouldn't have provided significant tax benefits, unless I intended to leave my job and dedicate myself full-time to TinyFaces NFT.

## Understanding Taxation on NFT Sales and Royalties

Here we are. As an individual, I'm subject to tax, which could be either income tax or capital gains tax. Things get tricky because it's up to the individual and their accountant to decide on a tax position based on the [badges of trade](https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim20205), determining which tax applies. The tax rates for these two are significantly different. For someone like me in the highest tax bracket, income tax generally means 45%, while capital gains tax is only about 20%. However, the situation is more complex because with income tax, you can't offset losses from the depreciation of the crypto; remember, Ethereum crashed by 30%.

While working with my accountant, we determined that sales through the smart contract would fall under capital gains tax for multiple reasons:

-   My source of income comes from regular employment.
-   The creation and sale of the asset was merely an occasional and fortuitous endeavor.
-   The creation was primarily driven by personal interest and artistic expression.
-   The deployment of the contract represented a singular event, with its success remaining unpredictable at the outset.

Although the income from the contract may not fall within the badges of trade due to my specific situation, the royalties from [marketplaces](/glossary/marketplace) like [OpenSea](https://opensea.io) are consistently identified as taxable income, as confirmed by various accountants.

To be certain, we felt it was again necessary to reach out to HMRC, but we haven't received any response to date. It's crucial to get this right, as the fines and interest that HMRC can impose might equate to paying an additional mortgage.

## Conclusion: The Need for Professional Advice in NFT Projects

Reflecting on my experience, I firmly believe that seeking guidance from an accountant before embarking on any NFT project is crucial. While some may assume I'm living a life of luxury with the money I've earned, the truth is, I haven't touched a penny of it, and I face daily uncertainty about the financial burden that awaits me, which could be anywhere from £100k to £300k in taxes.

I've chosen to write this blog post because it's a topic I frequently get asked about. Moreover, I aim to shed light on the practical aspects of navigating tax regulations within the NFT space, sans any glamorous façade. It's essential to note that I'm not a certified accountant, and the information I've provided should be approached with caution. Every individual's or company's circumstances are distinct, underscoring the importance of consulting a qualified accountant and collaborating closely with HMRC to gain a comprehensive understanding of your tax responsibilities.


Join Maxime's journey from 3D art enthusiast to NFT success with TinyFaces NFT, blending passion, technology, and creativity.


How I created a successful NFT project


## Discovering My Passion for 3D Artwork

First, let me introduce myself. I'm Maxime, a Belgian product designer and developer living and working in London in the tech industry since 2011. While my job involves some creativity, most of it revolves around technical aspects of user interface design. However, like most other designers in my field, I have a soft spot for design-related things, especially posters created by illustrators. So, I often find myself buying their art from websites like [The Poster Club](https://theposterclub.com), [Slowdown Studio](https://slowdownstudio.com) or [Brosmind](https://www.brosmind.com/illustration).

But not long ago, my interest in 2D artwork started to expand to 3D artwork. It all began when startups like [Pitch](https://pitch.com) launched in 2018 with visuals created by power couple [Kajdax](https://kajdax.de). The colorful, high-quality illustrations caught my eye, and I started to wonder if product design would move more into the 3D dimension through illustrations or new hardware.

![Illustration of four stylized characters collaborating with interactive digital elements, with text 'The future of presenting starts here' on a website header.](/pages/blog/pitch.jpg)

## Embracing New Technology and 3D Software

As someone who enjoys learning new technology, around 2020, I decided to set a goal to learn 3D software to prepare for that potential shift. Initially, I thought about learning Cinema 4D, but the $100 a month cost wasn't worth it since I wasn't making money from it. So, I purchased a few [Blender](https://www.blender.org) courses and subscribed to multiple YouTube channels.

Every weekend became tutorial time, and during quiet moments while taking public transport in London, I would grab my iPhone and watch short tutorials to become familiar with the Blender software. While some people try to learn everything, I mainly focused on modeling and a bit of sculpting. Rigging, materials, lighting, and animation weren't areas I felt would benefit me as a beginner.

## From Inspiration to Creation in 3D

After nearly two years of struggling with topology and the complexities of creating 3D art, I felt I was in a good position to start creating things using my own imagination. However, because I was so new to the 3D space, I lacked inspiration.

Things changed at the end of 2021 when I visited my partner's grandmother in Italy. Upon entering her apartment and opening the door, I saw artwork on the wall that initially gave me the impression of 3D art, but upon closer inspection, it turned out to be a painting. Immediately, I took a photo and decided it would be a great exercise and challenge for me to turn something 2D into a 3D artwork. When I returned to my in-laws later that day, I couldn't resist opening Blender and starting to model the character I saw on the wall. After two days of facing multiple challenges, I was satisfied with the result and [posted it on X](https://twitter.com/MaximeDeGreve/status/1460220164134350851/photo/1) (formerly known as Twitter). Unexpectedly, it received more attention than I expected. Remember, this was probably the first 3D artwork I had created without relying on a tutorial.

## Entering the World of NFTs

Around the same time, [NFTs](/glossary/nft) were gaining popularity. I wasn't really into it, and I didn't quite understand what it was all about. The only thing I understood was that people could create art and put it on the blockchain for others to obtain. Eager to learn new technology again, I couldn't resist exploring this further. But what art could I put on the blockchain? Especially since I'm not an illustrator and lacked inspiration. However, then I thought back to the 3D artwork I had created and wondered how I could repurpose it by giving it a modern twist.

## Launching TinyFacesNFT: A Journey to Success

After a few days of creating new outfits and hats, I created an X account called [TinyFaces NFT](https://twitter.com/TinyFacesNFT) and [posted them](https://x.com/TinyFacesNFT/status/1471601680760422405?s=20).
To my surprise, it garnered 50,000 views and 500 likes. It's hard to say why this happened, but remember, back then, NFTs were probably the most talked-about topic on X, and people always feared missing out ([FOMO](/glossary/fomo)) on a new NFT project.
I also think 3D art in the NFT space wasn't as common. There was the [MekaVerse](https://themekaverse.com) and the [Hapes](https://www.hape.io), but apart from that, it was mostly 2D.

![Collection of twelve different hats showcasing various styles and colors on a lavender background.](/pages/blog/hats.jpg)

In the following weeks, I continued to post new outfits without knowing where all of this was heading. There was no commercial plan or strategy; it was simply about enjoying the process of creating more outfits for my personal satisfaction

![Three stylized figures with distinct hats: left with a green cap, center in a blue party hat, right in a brown baker's cap, against tri-color background.](/pages/blog/outfits.jpg)

I remember my [next most successful outfit](https://x.com/TinyFacesNFT/status/1479017434996740098?s=20) was one inspired by the Grand Budapest Lobby Boy, although I shifted more towards a general lobby boy to avoid copyright claims. Despite that, the tweet was still very popular with 20k views and almost 500 likes.

![Stylized figure wearing a purple uniform with matching cap and pink-rimmed glasses, against a soft white background.](/pages/blog/lobby.jpg)

## Ethical Approach to Building a Genuine NFT Community

At the end of January 2022, the pressure on the project began to mount, and I still didn't understand the NFT space that well or what was driving it. I tried to get up to speed as quickly as possible by reading daily news articles and blog posts. Especially, terms like [whitelist](/glossary/whitelist), [rug pulls](/glossary/rug-pull), [bots](/glossary/bot), [road ruse](/glossary/road-ruse), [wash sales](/glossary/wash-sale), and the use of Discord to manage [communities](/glossary/community) caught my attention.

Instead of adopting conventional methods like employing bots, targeting quick-profit seekers, or engaging in wash sales to monetize my art, I chose a distinct approach. For my Discord server, I intentionally excluded bots. Access required a ticketing process linked to Twitter accounts. Accounts that were recently created or predominantly followed NFT-related accounts were not accepted. Additionally, I scrutinized their followed accounts, rejecting any associated with recently banned Twitter accounts.

Once these criteria were met, individuals could join the server. This process set TinyFaces NFT apart. Numerous bots attempted entry but failed, leading to a significant buzz on Twitter. [My tweet](https://x.com/TinyFacesNFT/status/1485902287457370113?s=20) detailing the ticket system amassed over 160,000 views and received more than 3,000 likes.

![Pass for an NFT collection invitation featuring a stylized black figure with glasses and a hat, with text detailing Discord server entry conditions and giveaway fairness.](/pages/blog/ticket.jpeg)

To ensure a smooth and controlled experience, I implemented a cap of 100 account entries per hour and conducted regular spot checks on new accounts. This approach effectively maintained order, with the limit frequently reached during peak times, notably when the USA audience became active.

## The Personal Cost of Success

Managing the project became challenging due to the negative reactions from some individuals wanting to join the community. They frequently attempted to contact me through various social media platforms, seeking my attention. This persistent online behavior negatively impacted my personal life and my love for creating 3D art at some point.

Despite these difficulties, I continued to dedicate myself to creating more outfits for my characters, often spending all my free time in Blender. My routine at some point was a full-time job during the day and creating 3D outfits until midnight. This schedule led to sleep deprivation and increased anxiety, making it difficult for me to disconnect from the community aspect and focus on what I love the most, creating 3D artworks.

When other artists like [Kajdax](https://kajdax.de) decided to [stop their WGMInterfaces project for similar reasons](https://medium.com/@wgminterfaces/a-passion-project-that-no-longer-feels-like-a-passion-project-c388011db108), I considered stopping mine too. But with support from my partner, I decided to keep going.

## TinyFaces NFT: A Small Success in the NFT World

Over the next few weeks, more and more people paid attention to the project. In mid-February 2022, I launched the new TinyFacesNFT website, which got featured on many webdesign inspiration sites like [Land-book](https://land-book.com/websites/32726-tinyfaces-nft-uniquely-generated-3d-characters), bringing even more attention to the project in the design community.

I also improved the design and logic of our ticket system to match the new website and reduce the number of messages we received on social media.

![Three digital cards with stylized faces and captions 'APPROVED', 'Here's your tiny invitation', and 'DENIED' for Discord access, with instructions for Twitter account review.](/pages/blog/tickets.jpg)

I was thrilled with the community that supported my art. People created fan art, pins, and pixel art based on previews of the characters I was creating.

![Illustration of a character in yellow headwear and glasses wearing a white mask; second illustration of same character flipping a pancake, with 'MILK' carton on counter.](/pages/blog/fanart.jpg)

## The Big Launch: Minting Day for TinyFaces NFT

On April 22, 2022, it was the day people could mint my characters. After testing the minting process one last time, I opened it up to everyone, and things got crazy.

Suddenly I saw hundreds of thousands of dollars worth of ETH coins in my wallet. This was beyond my expectations, especially considering the scale of my project. Unlike many other NFT projects that operate as businesses with elaborate roadmaps and teams, my project was a solo effort focused solely on creating art, with hardly any roadmap to speak of.

But then there was a problem. [Infura](https://www.infura.io), the backend for MetaMask, went down. For beginners, Infura helps crypto apps like MetaMask talk to the Ethereum blockchain. When it's down, these apps may not work properly. Since MetaMask was widely used, this caused the minting to stop for several hours.
Despite Infura's official statement about the issue, I was blamed for the project's failure, and people said hurtful things, even though I had no control over it.
Shortly after Infura was restored, all of my TinyFaces NFTs were quickly gone.

## Reflecting on My NFT Journey

Looking back, I couldn't believe what I achieved with this side project in just a few months. I learned a lot about creating 3D art and deploying it to the blockchain. It had a big impact that I didn't expect. I created something successful without much planning, learned to handle a lot of pressure, and most importantly, I could now call myself an artist.

The excitement in the NFT space may have tapered off somewhat, primarily due to decreased speculative activity, the impact of high interest rates and inflation, and a shifting focus towards generative AI. However, my enthusiasm for exploring this space remains undiminished, particularly through this project.

While the information above is a high-level overview, I will share more detailed insights into my NFT experience in the coming weeks, including what inspired my art, how I created the contract, [tax requirements for UK creators](what-taxes-did-I-pay-as-a-NFT-creator-in-the-uk), and what I think the future holds for this space.


Blog

The impossible task of a NFT artist

What taxes did I pay as a NFT Creator in the UK

How I created a successful NFT project