The Museum of Modern Art (MoMA) has received an endowment from the William S. Paley Foundation (Paley) to fund digital media activities and digital art acquisitions, potentially NFTs. Since Paley died in 1990, MoMa has loaned 81 works of art. Now 29 pieces owned by the Paley Foundation will be auctioned by Sotheby’s.

The sale, which includes works by Picasso and Francis Bacon, could raise $70 million for the endowment. As the museum is focusing on digital art, this suggests that MoMA could jump into the NFT car.

“We are cognizant of the fact that we give a go-ahead when we acquire pieces,” said MoMA director Glenn Lowry. Therefore, MoMA did not buy NFT from the beginning to avoid the appearance of endorsement. “But that doesn’t mean we should avoid dominance,” he told the Wall Street Journal.

There is a bit of irony here with a Picasso potentially being sold to buy NFTs. Tron founder Justin Sun was outbid in the famous Beeple NFT auction. So Christie’s sold him a real Picasso instead.

William S. Paley is known for taking CBS from a small radio network to a media powerhouse. And he was a trustee of MoMA since 1937.

“I know how deeply my friend Bill Paley cared for the Museum of Modern Art and how devotedly he devoted himself to its advancement,” said Henry Kissinger, who chairs the William S. Paley Foundation. “With this initiative, the Foundation will honor his intention and continue his vision for MoMA.”

While swapping a Picasso for a collection of pixels may seem strange, there are plenty of reasons why MoMA should pursue a digitally forward strategy.

First of all, the number of visitors has fallen drastically, from 3 million annually to 1.65 million last year. Even factoring in the pandemic, that’s a significant drop. On the other hand, it has been very successful on social media.

Digital content posted on its website and social media platforms has attracted more than 35 million people. The museum must find new ways to reach a larger audience to ensure its longevity. Venturing into NFTs and digital art apps would be one such method.

A MoMA metaverse has the potential to bring art to a much broader audience than a physical exhibition.

MoMA has taken a cautious approach to NFTs thus far. Aside from contributing data to the algorithmically generated works of artist Refik Anadol, he is not involved in any other NFT projects. Considering that NFTs have revolutionized the way consumers interact with digital art and artistic expression, it is critical that MoMA enhance its NFT experience. After all, the museum’s focus is literally modern art.

The NFT market is dominated by profile pictures like Bored Apes, sports, and games. However, the ArtBlocks computer-generated art collection ranks fifth in cumulative sales of $1.3 billion, according to CryptoSlam.

Sotheby’s involvement is fitting, as auction houses have played a key role in the evolution of NFTs. Sotheby’s famous auctioned Bored Monkeys Yacht Club NFT for $24 million. Y Christie’s The sale of the $69 million Beeple artwork was a key trigger for the NFT boom.

While this sale may not revive the NFT market, it may prove to be new life for MoMA.