Art Investment

4 ways Maecenas is unique in the art market

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Written by
Juan Dominguez

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14 June 2018

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You don’t need us to tell you what a huge (and potentially profitable) opportunity a fine art investment could be. With the Maecenas blockchain project about to launch, we’re hoping to make that opportunity open to all, not just a select few high-net-worth investors.

Learn more about Art as an alternative investment here.

Consider the recent Christie’s auction of deceased billionaire David Rockefeller’s items, for instance. His 1,600 strong private collection could sell for over $1 billion, according to commentators, with pieces by Picasso and Monet included as part of the lot. Picasso’s Fillette à la corbeille fleurie alone is expected to auction for more than $100 million.

Our ambition, with help from visionaries like yourselves, is to completely overhaul this incredibly private market and democratise the art world through the Maecenas blockchain project. We’re building a global art market that’s decentralised through blockchain technology and provides participants with the opportunity to own shares in some of history’s greatest paintings.

 

Reinventing the art market through the Maecenas blockchain project

The amazing blockchain technology that powers the platform is just one of many factors Maecenas is using to revolutionise the global art market.

Building on a foundation of blockchain technology is going to be key to any and every success we have at Maecenas. These foundations make Maecenas unique in today’s art market; here are four key aspects to consider:

 

1: Security

The decentralised nature of the blockchain means that it can be far more secure and transparent than other traditional transactions thanks to the cryptographic process involved.

That can also remove traditional intermediaries and make key information about art more widely available to investors. Our blockchain project additionally creates tamper-proof and highly secure digital certificates linked to artworks.

As for the artworks themselves, they are kept in purpose-built art storage vaults. Investors will be able to arrange visits for themselves and guests at these high-security facilities to see the artworks in person.

 

2: Compliance

One of our toughest tasks we faced when building the Maecenas model was the issue of legal compliance; most importantly how to structure investments in art that wouldn’t impinge on global financial regulations, whilst also providing protection and security for investors.

Our expert financial, legal and investment professionals have taken great strides in helping us create a solid legal framework and financial structure, thoroughly enhanced by the possibilities that blockchain technology provides. We have extensively researched and validated the model for nearly a year, applying best practices and complying with top financial jurisdictions worldwide.

FREE Art Investment Explainer Document >

3: Smart contracts and the auction process

Our blockchain platform is also helping us to break down the multitude of barriers that potential investors face when it comes to fine art investment.

Traditionally, auction houses and private sales controlled virtually all access to information, which also made it practically impossible to discover the fair price of artworks. The opposite is true with decentralised Maecenas, as the blockchain project connects investors, artists and collectors with one another. Smart contracts further removes the need for the use of intermediaries such as brokers and dealers, and facilitates trusted transactions even between complete strangers.

The shares in the artwork will distributed to interested investors via a Dutch auction process. When a work is listed, users can submit private bids through the Maecenas auction platform, identifying the number of shares of the artwork they want to purchase and the price they are willing to pay.

We feel this approach to the auction process is significant as it gives investors more price control, greater security and more transparency. These qualities make it much harder to manipulate when compared against a traditional auction.

 

4: Why we are “tokenising” artworks

Like other crypto based platforms Maecenas will use a token called ‘ART’, as the based for it’s financial contracts. These smart contracts will give added transparency and fairness to the market by being agreed on and then placed on a blockchain ledger. This public ledger can only realistically be done on the blockchain, especially with the issuing of digital shares and certificates of artworks.

The Dutch auction process and other critical solutions offered by Maecenas require ART to operate, acting as the fuel to power the entire blockchain project. Fiat or crypto currencies invested through smart contracts will first be given a value in ART. The implementation of ART as a utility token acts as a clearing and settlement mechanism during auctions, and also allows us to implement other smart contract activities, such as the issuance of bonuses or dividends to investors.

The more paintings auctioned through Maecenas, the more in demand ART will be, and there are a fixed and finite number of tokens available. We’re hoping that as the Maecenas economy grows, so too will the overall market cap of ART in the future.

Delve into more detail surrounding art investment on the Maecenas platform in our downloadable guide.

 FREE Art Investment Explainer Document >

 

Topics: Art Investment

Juan Dominguez

Written by Juan Dominguez

Prior to joining Maecenas, Juan worked for major global banks such as JP Morgan, ING & ANZ. With a career spanning four different countries (UK, Australia, Netherlands & Spain), he has experience on a wide range of transactions including Institutional Banking, Real Estate, Corporate Advisory & Private Equity. He holds a bachelor of International Business and a Master of Applied Finance from Macquarie University, with an award for high achievement.

Please read the following disclaimer >

This blog post is illustrative and for informative and general education and discussion purposes only. It is not, and should not be regarded as “investment advice” or as a “recommendation” regarding a course of action, including without limitation as those terms are used in any applicable law or regulation. This information is provided with the understanding that with respect to the material provided herein (i) MAECENAS is not acting in a fiduciary or advisory capacity under any contract with you, or any applicable law or regulation, (ii) that you will make your own independent decision with respect to any course of action in connection herewith, as to whether such course of action is appropriate or proper based on your own judgment and your specific circumstances and objectives, (iii) that you are capable of understanding and assessing the merits of a course of action and evaluating investment risks independently.. MAECENAS does not purport to and does not, in any fashion, provide tax, accounting, actuarial, recordkeeping, legal, broker/dealer or any related services. You should consult your advisors with respect to these areas and any material with regards to investment decisions. You may not rely on the material contained herein. MAECENAS shall not have any liability for any damages of any kind whatsoever relating to this material. No part of this document may be reproduced in any manner, in whole or in part, without the written permission of MAECENAS except for your internal and/or personal use. This material is being provided to you at no cost and any fees paid by you to MAECENAS are solely general educational purposes. All of the foregoing statements apply regardless of (i) whether you now currently or may in the future become a user of MAECENAS’s platform or products and (ii) the terms contained in any applicable contract between you and MAECENAS.

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