Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
The tokens that represent a limited-edition 2015 Ferrari F12 TDF will now be available to European investors.
Cryptocurrency investors can now invest in a new tokenized asset class featuring the limited-edition Ferrari cars. Crypto startup CurioInvest is now selling tokens for a limited-edition 2015 Ferrari F12 TDF supercar.
Back in 2019, the limited-edition Ferrari was valued somewhere around half-a-million-dollars. Just eight months later, the supercar’s listing took place $1.5 million during an auction in Los Angeles. Rey Fernando Verboonen, CurioInvest’s co-founder, thinks that the limited-edition Ferrari cars are a major asset class. Speaking to CoinDesk, Verboonen said:
“When you look at these assets, you see that rare collectibles have outperformed the S&P 500. Classic cars and hypercars [a step above supercars] have performed the best.”
Since its inception in 2013, the Ferrari Index has seen a major rise of 233%. The Index comprises of 13 most collectible Ferraris from the 1950s and the 1970s. It is also clear that the Ferrari Index has outperformed the S&P 500 over the last decade. In the last ten years, the S&P 500 index has grown by 173%. Comparing these performances, Verboonen thinks that supercars are a major investment option.
Tokenized Ferrari Assets Details
The Liechtenstein-based CurioInvest has received a nod from the country’s chief financial regulatory to proceed ahead with its plans. The startup has still got a total of 440,000 tokens available for investors pegged at a dollar. These tokens are based on Ethereum‘s ERC-20 standards and also traded on any exchange.
To provide secondary market access to the tokens, CurioInvest has already partnered with crypto exchange Huobi. Although CurioInvest has hosted supercar token sales earlier, this will be the first open to European retail investors. Note that the U.S. investors cannot participate in this one.
The startup will also have a private placement open to institutional investors with a $1.1 million hard cap. The token basically represents a bond wherein each token represents a share of the car’s final sale price. In the first five years, CurioInvest considers offer at a minimum premium of 20% over the car’s current valuation of $1.023 million. In case the car remains unsold, it will go for a higher auction. CoinDesk further reports that:
“When the Ferrari is sold, the proceeds will be divvied up to token holders after costs, which Verboon estimates will be range between 25,000 and 50,000 CHF (~$26,000 – $52,700), assuming it’s held for the entire five-year cycle. If the car is sold at a profit, CurioInvest takes a hefty 20% commission”.
The token sale started this Monday i.e. June 16. It will further continue for a month till July 16 or the $1.1 million hard cap.
The limited-edition 2015 Ferrari F12 TDF is kept at a secure garage outside Stuttgart, Germany, stored in mint condition. Verboonen said: “The conditions are very specific. There’s not much dust in there and there’s climate control and [the cars] are handled with gloves.”
It will be interesting to see the response from the investors for this new asset class.