The idea of tokenization, or converting assets into digital tokens, is becoming increasingly popular. Decentralized platforms create a way for investors to group funds and buy in assets that are physical and real world which would be far out of their price point in other settings.
Maecenas is a new Ethereum-based system that allows for investment in Fine Art through tokenization. Artworks are stored in custody through art vaults like freeports, which are luxurious and personalized art viewing areas located within tax-free zones near airports.
The currency used within the ecosystem for purchases and leases is the ART, an ERC20 token issued by Maecenas, which monetizes the assets within the artwork ecosystem. The tokens can be traded on exchanges for fiat currency.
The tokenized artwork is then distributed to the investors who are able to invest via the ART token. Investors hold a portion interest in the artwork through the tokens, which may appreciate over time as the piece of art increases in value.
This tokenization is based on the same principle as the stock market. Investors can own shares in massive entities like Facebook, Apple, or Xerox. Until Maecenas, the fine art market was controlled by a few art patrons who were able to spend huge sums on individual pieces.
An amazing opening
The fine art market is growing exponentially. Valued at $65 bln per year in transactions, the opening for a platform like Maecenas is massive. By decentralizing these investments, the company can offer a wider market a chance to participate.
What’s more, those pursuing safe-haven asset investments can diversify portfolios with assets which, until now, have been limited to only the large-scale buyers of the art world. Tokenization, therefore, opens these large-scale purchases to the mainstream, and general investors are able to participate.
With price increases, greater participation, and new investor markets being opened the art market will certainly move forward, and Maecenas creates a platform to keep this leap smooth.
Finally, the platform allows investors to communicate through decentralization across a peer-to-peer (P2P) network. This removes the fees charged by art auction houses, which can be prohibitive. Such a system drives values upward as costs are reduced.
ART token exclusive
Investors who are hoping to participate at the beginning of the international token market, Maecenas has offered the ART token through an ICO. Tokens are offered at the rate of 480 ART/1 ETH.
Maecenas will cap the total token offering, allowing only those funds to be utilized in the system. As a sign of the stability and quality of the offering the $100 mln crypto hedge fund Pantera Capital has already invested in ART tokens.