Peeling Back the Value: Why Art Is Worth More Than Meets the Eye

Not since “Banksy’s Girl with Balloon” unexpectedly self-destructed on the Sotheby’s auction floor has a work of art made such a sensation as the “duct-taped banana.”

When Italian-born, New York-based artist Maurizio Cattelan debuted “Comedian” at Gallery Perrotin’s booth at Art Basel Miami Beach in 2019, it drew such a massive crowd it had to be removed from the wall. It immediately went viral and stimulated worldwide discussions and debates about the nature and value of art. It caused equal parts outrage and intrigue and left many asking – how is this conglomeration art?

For the small portion of the population that may be unfamiliar, Cattelan’s ironically tilted “Comedian” consists of a ripe yellow banana and a strip of duct tape. It is displayed on the wall with the duct tape slanted upwards to the right, adhering the banana to the wall.

The piece was created in a limited edition of three plus two artist’s proofs and comes with detailed instructions on a certificate of authenticity on how to display the piece. The banana and the duct tape are to be replaced as needed per the discretion and responsibility of the owner.

One of the editions of “Comedian” was recently sold at The Now and Contemporary Evening Auction on November 20, 2024, at Sotheby’s New York for $6.2 million, which put the artwork back in the headlines. The Sotheby’s auctioneer chuckled as he brought down the hammer, so perhaps “Comedian” is the perfect title.

How can a banana and a strip of duct tape, which cost a pittance, amount to a seven-figure sale? The answer is, “Comedian” is a work of conceptual art, and the value is in the concept rather than the physical manifestation of the assembled objects.

Conceptual art, as described by The Museum of Modern Art, is a movement originating in the 1960s and 1970s in which artists experimented with art that emphasized ideas over objects and materials traditionally associated with art making. Rather, as explained in MoMA’s Art Terms, “conceptual artists used their work to question the notion of what art is, and to critique the underlying ideological structures of artistic production, distribution, and display.”

Some famous works from the origin of the movement include Yoko Ono’s book containing event scores with the confusing title of “Grapefruit” (1964) and John Baldessari’s “I Will Not Make Any More Boring Art” (1971), a lithograph where the artist repeated the title statement over and over in handwritten script. Simply stating, conceptual art is not a new concept, though the exposure to it via social media is, and so is the public response.

The influence of social media has significantly shaped the value of art, as it has for designer handbags during the pandemic. Many people now desire to own pieces that have gained popularity online or be part of a popular movement in art. The duct-taped banana, with its anti-art and absurd nature, has sparked widespread interest on social media. It’s driven many to share their opinions online and led a fortunate few to make a purchase.

Collector interest, market demands and trends also heavily influence the value of art. As originally reported by Anny Shaw in The Art Newspaper, the artwork “Comedian” gained such widespread notoriety that in 2022, British contemporary artist Damien Hirst proposed exchanging any of his pieces for the famous duct-taped banana, only to be declined. Originally priced at $120,000 at Art Basel in 2019, its value skyrocketed following its viral fame. By the time it was auctioned at Sotheby’s in 2024, its estimated value had soared to $1 million to $1.5 million, ultimately selling for a staggering 316% above the estimate.

Justin Sun, the cryptocurrency entrepreneur who purchased “Comedian” for $6.2 million at Sotheby’s, understood the meaning behind the art well. At a press conference in Hong Kong shortly after purchasing the work, he ate the banana and stated that the idea (behind the art) exists as intellectual property as opposed to something physical, and that “eating it at a press conference can also become a part of the artwork’s history,” according to a report filed by senior China correspondent Amy Hawkins for The Guardian.

When art surpasses its physical form, valuing the tangible aspect of conceptual (and edible) art for insurance purposes can be complex. The approach varies depending on the piece. For Maurizio Cattelan’s “Comedian”, a certified fine art appraiser would focus on the value of the signed certificate that accompanies the artwork. This certificate, rather than the temporary banana, is the insured item. Owners of editions of “Comedian” and similar works are advised to store the certificate in a fire-proof, locked safe or a bank safety deposit box.

Art as an asset has evolved dramatically over the past few decades, with its value now extending far beyond the traditional appreciation of physical work itself. This expansion into second-order intellectual property rights has transformed the art market, enabling pieces like Maurizio Cattelan’s “Comedian” to generate immense value in ways that transcend their physical form.

A primary mechanism through which art accrues additional value is copyright, which grants the artist exclusive rights to reproduce, distribute and create derivative works based on the original piece.

For instance, the iconic image of “Comedian”—a duct-taped banana—has been reproduced in countless media formats, from commercials and merchandise to memes and satirical adaptations. Each instance represents an opportunity for licensing revenue. Beyond the initial sale price, artworks such as “Comedian” often see exponential increases in value through licensing deals for commercial advertisements and NFTs. Brands seeking to align themselves with avant-garde, conceptual messaging may license the image for campaigns, further elevating the piece’s cultural significance and market value.

The advent of blockchain technology has introduced new ways for artists to monetize their works. By tokenizing “Comedian,” for example, Cattelan or a future owner could create limited-edition digital versions, providing a new revenue stream while maintaining authenticity and scarcity.

In addition to copyright, the brand value of the artist and the named piece itself can significantly enhance the financial worth of an artwork. “Comedian” has become a global symbol of the absurdity and irony in contemporary art, cementing its status as a cultural touchstone. Artists like Maurizio Cattelan, Damien Hirst, and Jeff Koons have cultivated strong personal brands, where the association of their names alone adds immense intangible value to their works. Similarly, the name “Comedian” functions almost as a trademark, signifying a blend of humor, critique, and artistic rebellion.

This branding enables secondary commercial opportunities, including museum and gallery exhibitions as well as related merchandising. Institutions may pay substantial fees to display works of such renown, further increasing the piece’s prestige. Products bearing the image or name of “Comedian”—from clothing to coffee table books—generate additional income streams for rights holders.

The shift toward intangible value creation also involves patents and trade dress in some cases, particularly for artworks that incorporate unique methods, materials, or designs. While “Comedian” itself does not fall into these categories, the broader conceptual art market increasingly incorporates intellectual property protections for innovative techniques or installation methods.

In “Comedian’s” case, the artwork’s certificate of authenticity, which dictates how the piece is to be displayed, could itself be considered a unique form of intellectual property. The meticulous instructions for replacing the banana and tape underscore the artist’s intention to control the narrative and presentation of the work, further tying its value to the intellectual concept rather than the physical materials.

The trajectory of “Comedian” exemplifies how the value of a tangible piece of art focused on its display can quickly escalate due to indirect intellectual property value. Its viral fame, driven by social media, created a feedback loop where every mention, meme, or commentary added to its cultural cachet—and by extension, its monetary worth. Owners of such works are no longer mere custodians of physical artifacts but stewards of valuable intellectual properties with global recognition.

For example, the $6.2 million hammer price at Sotheby’s reflects not just the perceived artistic merit of “Comedian,” but also the potential for ongoing revenue from licensing, public exhibitions, and derivative works. Future owners stand to benefit from these rights, effectively turning the initial investment into a recurring income stream.

As the art world increasingly intersects with technology and commerce, the lines between physical and intellectual property continue to blur. The market is now as much about leveraging rights as it is about acquiring objects, and artists like Maurizio Cattelan are at the forefront of this paradigm shift. “Comedian” may appear simple in form, but its value lies in the conceptual framework it represents—an idea that can be endlessly reproduced, discussed, and monetized.

In this way, works like “Comedian” highlight the future of art as an asset class, where the intangible value derived from intellectual property rights often eclipses the traditional worth of the tangible artwork itself. This evolution not only redefines what art is but also ensures its continued relevance and profitability in an increasingly digital and interconnected world.

As the art world undergoes irreversible changes and our understanding of the art market evolves, it is essential for brokers, insurance agents, and high-net-worth family practices to collaborate with a team that possesses both a profound knowledge of art history and an understanding of intellectual property as an asset class.

Hollenbankis a senior fine art appraiser at J.S. Held. Malackowski is a senior managing director, Ocean Tomo, a part of J.S. Held.