ArtSquare’s use cases: How each player can benefit from ArtSquare’s Marketplace.
ArtSquare wants to bridge the gap between small and big investors in the art market by promoting a new way of buying and selling artworks and collectibles; this is based on the idea of digital co-ownership enabled by Blockchain Technology.
We have designed a number of solutions that will allow all players in the fine art industry to make the most out of today’s new financial scenarios.
Whether you are an Art Investor or an Art Owner, read through to learn how you can use ArtSquare’s system of tradable art shares to create new possibilities for profit.
Art Owners
Art galleries can use ArtSquare as a channel of sales to reach not only small- and medium-budget art buyers but also those interested in crypto-currencies.
The platform functions as a marketplace that will help your pieces gain greater attention, reach a wider and new audience, and sell more. Newcomers of the art market who don’t have a multi-million budget and are looking to buy medium-priced art pieces may feel intimidated or lack the experience to do so through a gallery. Moreover, marketing costs and maintenance efforts may discourage art galleries from acquiring medium-priced pieces for their collection. ArtSquare is creating a market for this category of artworks and collectibles and giving art galleries the tools to acquire new customers.
ArtSquare offers art galleries security, freedom, and control over the artworks they decide to put forward for listing. At the moment of listing on ArtSquare, art galleries will be able to:
1. decide the percentage of the artwork’s value to be turned into digital art shares and sold as tokens through the ArtSquare Primary Market
2. call back the tokens associated with the artwork at a predetermined fixed price, in the event that a single Investor decides to buy the artwork for its total value.
Whether you are a private collector, an institution, or a company owning an art collection, ArtSquare offers digital solutionsthat will allow you to monetize your artworks. By listing and selling shares of your artworks and collectibles through ArtSquare, you can avoid issues of illiquidity that come with fixed financial assets. On the one hand, you will generate revenues and make the value of your collection grow by placing part or whole of it on the market; on the other, you will retain ownership rights for the pieces (for instance, you will still be able to display them).
Making your artworks liquid means that you can earn money on the investments originally made to put your collection together and use newly-generated liquidity to expand it.
Collectors will access ArtSquare through our Art Pros, appointed art market experts that will help them take the right steps towards a successful listing i.e. producing the relevant documentation and ensuring a fair pricing process.
ArtSquare acts as a third-party venue within the art market that reconciles the needs and goals of auction houses with those of private dealers and art buyers. Auction houses can redirect their clients to ArtSquare as a post-sale marketplacewhere they can see their artworks and collectibles thrive again as co-owned, tradeable, and liquid assets. After completing a purchase through an auction house, buyers will be able to sell their artworks or collectibles as shares of assets on the ArtSquare Primary Market and generate new revenues from their original investment. In this way, ArtSquare aims to become the solution to sidestep the drawback of locked liquidity that characterizes art investments.
By turning artworks and collectibles into shareable assets, we aim to generate liquidity and increase the number of transactions happening across the world of fine art and collectibles. This scenario has a number of advantages for auction houses both in the short and long term: we are confident that this injection of liquidity will lead to the increase in budgetsand the number of art investors, and the consequent expansion of the market and the growth of sales. Through ArtSquare, auction houses will continue to share in the financial benefits of the artwork even post-sale in terms of re-investment and expansion of their clientele’s buying power.
ArtSquare’s dynamic marketplace is a powerful commercial tool for contemporary artists. Artists can use ArtSquare’s channels of sale — ArtSquare Primary Market and the ArtSquare Exchange — to sell their works to a new and wider audiencewho is excited about innovative ways of navigating the art market. ArtSquare will appoint an Art Pro — usually a gallery — that will work with artists in the pre-listing phase, helping them produce the relevant documentation for the artwork (i.e. provenance and certificate of authenticity of the artwork), determine its value, and locate it on the ArtSquare Primary Market as tradeable art shares of predetermined value.
Artists can also use ArtSquare to fundraise for their projects. There are costs associated with the creation of site-specific installations, paintings, sculptures, multi-media works or even temporary works that emerging artists struggle to cover. Blockchain is taking crowdfunding to the next level: ArtSquare uses blockchain technology to enable artists to raise money for their projects. In the same way as artworks are listed on the ArtSquare Primary Market, artists will be able to list works-in-the-making and divide their total value (including, for instance, production and installation costs) into any number of digital art shares that Art Investors will be able to buy in the form of Artwork Tokens (AWTs).
This is also an exciting opportunity for Art Investors to act as art patrons: not only they will concretely contribute to the creation of a new artwork, they will also co-own the artwork and share in the revenues generated from its display and sale.
Art Investors
ArtSquare’s goal is to give small and medium investors full freedom to access the market for fine art and collectibles. As an elitist and increasingly financialised forum with unclear regulations and complicated dynamics, the art market is beyond the reach of investors with medium or low budgets and newcomers who lack familiarity with the sector or the connections to enter its hyper-exclusive venues.
Art Investors will be able to buy and trade digital art shares corresponding to portions of the value of artworks in the form of Artwork Tokens (AWTs). The price of single AWTs is small enough that Investors will be able to liquidize them easily and flexibly. ArtSquare is bringing about a revolution in the world of art investments: while buying an artwork or collectible through the traditional art market entails a considerable expenditure–which includes commission fees and maintenance costs– and a consequent scenario of locked, illiquid assets in the long term, ArtSquare’s system of tokenization allows Investors to diversify the financial risk and enhance the potential for revenues of their portfolio.
Instead of investing their capital on a single, highly-priced artwork or collectible, Investors will be able to build a portfolio of different tokens representing multiple artworks of various value. ArtSquare’s Multi-Currency Walletis a feature that allows Art Investors to keep track of the value of their assets and make informed decisions on their AWTs based on the trends and developments of the market. For instance, Art Investors will enjoy the freedom to liquidize some AWTs and invest in others that grow faster.
ArtSquare.io — Fine Art for Any Budget
