The revolutionary and transformative blockchain technology is finding its applications in almost every field like financial systems, educational systems, logistics and much more. In yet another interesting use-case, later this month, Andy Warhol’s 1980 work “14 Small Electric Chairs” worth $5.6 million will be auctioned on the Ethereum Blockchain.
Dadiani Fine Art in London’s Mayfair district will carry out this action in partnership with blockchain platform Maecenas Fine Art. The auction is scheduled to take place on June 20 where 49% of Warhol’s work will be available for sale. The auction will have payment being made in either of the two cryptocurrencies – Bitcoin and Ethereum.
The price of the auction is fixed at $5.6 million, which accounts for nearly 730 BTC as on the existing rate which, however, could change till the auction-date depending on the volatility in the market. The reserve price of the auction is kept at $4 million or 25 BTC. All the participants of the auction will have to strictly comply with the local regulations.
In a statement, founder of Dadiani Syndicate, Eleesa Dadiani, explained the idea of such an auction saying:
“We aim to render the future of fine art investments to global reach. The cryptocurrency will broaden the market, bringing a new type of buyer to art and luxury.”
Eleesa Dadiani, who is popularly referred to as the “Queen of Crypto”, earlier told The Times that “the world’s wealthy are looking for new ways to invest and the millionaire is changing.” Sharing similar thoughts, Maecenas Chief Executive, Marcelo García Casil said that the sale “would help transform the art market.” “We’re making history. This Warhol is the first artwork of many more to come,” he added.
As noted earlier, the auction will take place on the Ethereum blockchain by using the smart contact that will help to automatically determine the final payment in BTC or ETH considering the crypto-market volatility.
The blockchain is expected to bring a significant change in the art-auction industry while brining-in more transparency and mitigating the risks of fake and unregulated pricing.
At a recent convention in London, the co-founder of blockchain identify company Codex Protocol, Jess Houlgrave, stated:
“Highest estimate I’ve seen of fraudulent art pieces in the art market is 40 percent. In this regard, blockchain’s benefits immediately come to mind – specifically the maintenance of traceable records on a public database that art collectors can view to verify their pieces.”
However, this is not for the first time that an auction in the art industry is done using the blockchain technology and sold through cryptocurrencies. Earlier this year in January, four-paintings were bought using digital currencies at the Art Stage Gallery in Singapore.