When it comes to art, I’m a complete ignorant.
I would not distinguish between Picasso and Van Gogh; and the most memorable work of art that ever hung on my wall was this iconic 70s poster about Farrah Fawcett.
Not that there is much difference, because the price of beautiful art today is so high that only the rich can afford the hefty prices at which art can be collected today.
Last year, for example, Leonardo da Vinci land was sold for $ 450 million. It’s clear that I can’t afford it.
But now the technology on which cryptocurrencies like Bitcoin and Ethereum are based is changing the way art is sold. It helps to make art an investment that ordinary people like you and me can afford.
I’m talking about using blockchain technology to turn valuable works of art into tokens – so Andy Warhol’s and Claude Monet’s work becomes an affordable part.
Tokenization = Democratization
Maecenas in New York buys a work of art that they consider to be discounted. They then sell units of the work of art to qualified participants.
These shares are transferred and stored in a block chain based on Ethereum. A blockchain is an open source shared protocol that allows users to store their transactions securely and unalteredly. And this type of transaction is called “tokenization”.
Art owners no longer have to sell an entire work of art to a single buyer. Instead, they can sell tiny shares to many, many investors around the world.
In other words …
Collecting art can now be a community activity
The first painting to be tokenized in this way is Andy Warhol’s 14 Small Electric Chairs. Maecenas collected 1.7 million for the work – 31.5% of the total value they valued at $ 5.6 million.
Newworks investment platform Masterworks cost Warhol $ 1.8 million. So the tokenization process actually increased the value of the painting.
What did the buyers of Andy Warhol’s tokens get then? They received inviolable digital certificates, always linked to Warhol’s painting through the blockchain; and what they can sell at any time.
“Tokenization of assets is the most prominent and exciting use of blockchain technology and we are proud to be a pioneer in this field. This Warhol country is the first of many to come and we look forward to seeing and leading the financial revolution in the art market,” said Marcelo Garcia Casil, CEO of Maecenas.
Tokenization of art securities is drastically changing the dynamics of the collecting market. But the same is happening with many other markets that suffer from liquidity problems and are difficult to sell – such as real estate, collector coins and diamonds.
Real estate is a very illiquid market. And now, for the first time in history, real estate can be easily shared with many chain investors around the world with blockchain tokens.
For example, a brand new, $ 36 million luxury condominium development with blockchain tokens was broken into pieces. There are only 12 luxury apartments. But if you want to own a piece of Manhattan real estate, the blockchain offers you the opportunity to invest as much or as little as you want. You can watch a Bloomberg video here: “The Block Chain Conquers Manhattan . ”
After Jeff Bezos announced that Amazon would bring its headquarters to Queens, New York real estate agents announced such an explosion of interest that they had sold the properties without seeing them, even in a text message.
Now that tokenization has intervened, it may have the potential to make the real estate market sparkle in the same way Amazon did to the retail market. We can see even more interest in this unique method of investing – be it in real estate, art treasures or the technology companies that make it all possible.
So yes, cryptocurrencies have been properly minted this year. But the technology behind them – the blockchain – is driven by success stories and investment wealth.
Translation: Lucreds Plus OÜ