That's just historically inaccurate. Andy Warhol was purposefully working with people like Candy Darling because they were trannys and on the outskirts of society in the 1960s. The Velvet Underground wasn't making millions in the 1960s. They invented the DIY ethic within the art world, treated each other like famous people ironically because no one else would, then eventually your Zionist Art Mongers swoop in and tried to make a buck after the glory days were long gone. Same as with all niche cult art markets.
It's not "terrible art" that's exactly what people said about Impressionists, Post-Impressionists, Cubists, Pop Artists, Neo-Expressionists, Graffiti, Contemporary, Post-Modern, and Street art. There's no such thing as terrible art. Artists just group together in cities because they're outcasts of the zeitgeist, and then newspapers give them a label that no one in the actual group likes after one of them gains some notoriety, and then 50 years later people think there was some art movement when really it was just a bunch of nerdy friends getting wasted in an apartment covered with aluminum foil. "When you front, it's inspriational" even the 'bad' artists show good artists what not-to-do.