This article was originally posted on Cointelegraph - an independent publication covering cryptocurrency, the blockchain, decentralized applications, the internet of finance and the next gen web.
It seems that the concept of tokenization is taking the world by storm. Decentralized networks allow people to invest through the pooling of funds in assets that are tangible, and that would otherwise be far out of their price point.
Maecenas is a platform that allows users to invest in works of art through tokenization. The artwork is kept in the custody of art vaults like freeports – ultra luxurious art viewing spaces in tax free zones near major airports. The currency used within the ecosystem for purchases and leases is the ART, the ERC20 token issued by Maecenas. The tokens can also be traded on exchanges for fiat currency.
The tokenized artwork is then offered to the community who is able to invest in the art via the same token – the ART token. Investors then hold a portion interest in the artwork, which appreciates with time.
The principle of tokenization is the same as in the stock market. Individual investors are able to own shares in huge corporations like Google, Apple, or GE. However, until Maecenas, the art world was limited to a few art patrons who were willing to spend millions on individual pieces. Through tokenization, this will radically change.
A massive opportunity
The art world is growing rapidly. With nearly $65 bln per year in art being transferred, the opportunity for a company like Maecenas is huge. By tokenizing these assets, the company is able to offer them to a wider market, thus increasing the buying power for the market.
Further, investors seeking more safe-haven asset purchases are able to diversify their portfolios with assets which have, until now, been reserved for the largest-scale investors in the world. Through tokenization, these large-scale purchases are moved into the mainstream, in general class investors can participate.
This coupling of price increase, wider participation, and opening of new investor fronts will drive the art market forward, and Maecenas is there to make the tokenization leap smooth.
Further, the decentralized platform allows investors to coordinate with one another across a peer-to-peer network, effectively removing the exorbitant fees charged by art auction houses. This also drives prices upward as handling costs are greatly reduced.
ART tokens offered
For investors who want to join in on the ground floor of what will ultimately become a global tokenized market, the company is offering its ART tokens via a crowd sale ICO. Tokens are sold at a rate of 480 ART for 1 ETH.
The company is committed to capping the number of tokens, and only allowing the funds to be used within the platform. Pantera Capital has already invested part of its $100 mln crypto hedge fund into ART tokens. Savvy investors will want to get in on the ground floor with Pantera.
Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.
To read more from Cointelegraph follow this link.