Tokenization, or the digitizing of assets into portion-ownership tokens, is growing in popularity. Platforms without a centralized hub create a way for investors to group funds and buy art that are tangible and which are beyond their price point in other settings.
Maecenas, the new Ethereum platform designed for investment in pieces of art through tokenization, is creating just such a system. Artworks are housed in custody within secure art vaults. One example are freeports – luxurious art viewing suites within tax-free zones near major international airports.
Within the ecosystem, the currency utilized for purchases and leases is the ART, an ERC20 token issued by Maecenas, which monetizes the assets within the artwork ecosystem. The ART token is necessary to contain all transactions within the platform to avoid currency issues. ART can also be traded on exchanges for normal centralized currency and are likely to appreciate with time and platform valuation increase.
Issuing shares in the artwork allows it to be distributed to investors who can purchase shares using the ART token. Investors then hold a portion of the value of the artwork through their shares
The tokenization model is founded on the fundamentals that produced the stock market. Smaller scale individuals can, through tokenized shares, own portions of massive entities like Google, Facebook, or Kraft. Until the creation of the Maecenas platform, the fine art world was dominated by a few powerful art patrons who could afford to spend large sums on fine art for private collection.
An new door to art
Collectors of fine art know that the market is growing quickly. Currently assessed at $65 bln per year for total transaction volume, the door for a system like Maecenas is suddenly very much open. Decentralized tokenization of these assets creates a platform through which the company is able provide a wider market a door for participation.
Investors who are seeking value-stable investments to diversify their portfolio holdings can do so with tangible asset purchases which, apart from Maecenas, have been narrowly offered to the largest-scale players of the art world only. However, with the tokenization model a new market opens these large-scale purchases to simpler investors who are then able to participate.
As prices increase, participation continues to rise, and new marketplaces are opened, the market for these assets is certain to grow. Maecenas has already conceptualized the platform to ensure this leap to mainstream happens smoothly.
Further, the Maecenas system allows individuals to interact and purchase through across a peer-to-peer (P2P) platform. This limits the customary fees demanded by auction houses, which can often be astronomical.
ART token offering
With many cryptocurrencies, investors who participated early had the most to gain. Maecenas has offered the ART token through an ICO, and investors should consider joining. Tokens are sold to buyers at 480 ART/1 ETH.
Maecenas will control the maximum token offering and set a fixed limit, of total tokens generated. As an indication of the success and ingenuity of the Maecenas ICO, Pantera Capital has already made a significant investment in ART tokens. It may soon be true that everyone can own a Picasso…or at least a share of one.
Disclosure: This is a sponsored post.