The ability to divide an asset into smaller portions, sometimes called tokenization, is growing utility for investors. Decentralized peer-to-peer platforms have made a way for buyers to pool their resources and purchase shares in assets that are physical and which would otherwise be beyond their price range.
One such company, Maecenas, founded on the Ethereum blockchain, is designed for tokenization of artwork. Works of art are placed in custody inside of secure vaults, like, for example freeports, which are beautiful and contemporary viewing suites inside of tax-free areas around international airports.
Within the platform itself, transactions take place using the currency created for purchases and leases called ‘ART’, ERC20 tokens issued by Maecenas. Through the tokens, Maecenas monetizes assets through the ecosystem. The token is critical in order to keep all transactions inside the ecosystem in order to avoid international currency issues. The tokens can also be traded on exchanges for normal centralized currency.
Tokenizing allows artwork to be offered to investors for purchase through shares by utilizing the ART tokens. Investors are able to hold a fractional interest in the item purchased with the tokens. In addition, the tokens can serve as a means of value increase, and appreciate with time and overall platform increases.
This fractional sales model is built on the same fundamental principles that created stock markets. Lower net worth investors are able, through shares, to own portions of larger scale companies like Apple, Facebook, or Dow. With the conception of the Maecenas system, the art world will no longer be controlled by a few powerful patrons who can afford to spend large sums of money.
Opening a Door for the World
Art aficionados know that the collector world is increasing rapidly. Current assessments place the overall value at $65 bln per year, meaning that the door for a platform like Maecenas is very much open. Tokenization of art world assets has made a platform through which Maecenas can provide a better and more resilient market for investors.
Those who are pursuing stability in diversifying their investment portfolios can do so through Maecenas, buying assets which have been only available to the highest end buyers of the art world. Nevertheless, the tokenization platform is a new market which opens these purchases to other investors who can participate.
As prices increase, participation continues to gain popularity, and new market places 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.
What’s more, the system allows investors to interact and purchase through a peer-to-peer (P2P) system. This limits the fees that have been customarily demanded by traditional auction houses.
As with Bitcoin and others, those investors who entered the market early had the most upside. Maecenas is offering ART tokens via an ICO, and participants should consider joining. Tokens are sold at 480 ART/1 ETH.
Maecenas is capping the maximum token offering of total tokens generated. As an litmus test of the potential for success of the Maecenas ICO, Pantera Capital has already made a significant investment in ART tokens.