Art Tokenization Platform-crypto soft malaysia
What
is Art tokenization?
Art
has so far (and still in the present) has been a very costly affair.
Only those Art Connoisseurs, curators & collectors who have the
financial backing have been able to afford the artworks.
Tokenizing
an Art means that the art's cost of ownership is ascertained, the
rights to own it is digitized into multiple tokens and sold to the
interested buyers. Since each token is backed by Art's value and
right to ownership, it implies that you own a portion of the art for
that particular value. Art asset-backed tokens have a ceiling limit
as to how much units of tokens they can sell, so the quantity is
limited and the value increases over time without getting diluted.
The
primary advantage of tokenizing an artwork is that it lowers the
entry barrier for everyone who might be interested in purchasing the
artwork but may not have the funds to purchase the artwork. The
concept of Tokenized art allows a group of individuals to
collectively invest in the artwork by purchasing few of the tokens
that are equated to a certain value. The holders of these tokens can
trade(Buy or sell) the tokens in asset
exchanges that support them to make profits.
Any
artwork can be tokenized using an Art
Tokenizing platform. In a few steps, they can create art backed
tokens easily.
Why
is art tokenization important to the Artists and everyone in general?
The
art world is tightly controlled by certain groups that determine the
pricing of an artwork, and it suffers the same fate as many cottage
industries that get shadowed by monopoly and middlemen (Art dealers).
To
understand this, you'd need to know how an Artwork is priced before
it reaches a gallery.
The
price of an artwork is influenced by certain factors like the size of
the artwork, reputation of the artist, the reputation of the art
dealer, the medium etc. In a regular scenario, the art dealer buys
out the art from the artist and based on his reputation, establishes
a price bracket to price the artwork. The gallery which displays
these works operate on two main business models, It either buys out
the artwork directly from the dealer, displays it or works with the
art dealer on a Profit sharing model.
Model
1:
Directly
buying the artwork, makes sense when the artwork is negotiable and
the art dealer wants to let go of the artwork or the artwork is
bought in more quantities. The gallery would then store the artwork
or loan it to other galleries or exhibit to increase the value of the
artwork (Just like how advertising works, the more you see it. The
more you become familiar, which is directly proportional to the value
of the artwork increasing.)
Model
2:
Profit
sharing model, for artworks that are created by reputed artists and
are backed by reputed art dealers, the gallery operates in this model
where the auctions are held in a profit-sharing basis when the art is
sold. If there was no sale, to absorb any loss, the gallery may take
a minimum guarantee before the auction or exhibition event.
Eitherways,
mostly the dealer and the gallery stand to make more profit than the
artist. As the artists only get a portion of the profit made or if
they've sold the artwork outright, they may have sold it for a lesser
price.
Tokenizing
the artwork allows an artist to potentially thrive without depending
on multiple layers of middlemen or they can directly choose to work
with tokenization platforms to tokenize their artwork. This ensures
that their work is recognized, the actual value is evaluated
transparently and the artist gets the maximum benefit. Art tokens can
potentially change the lives of artists who can then focus on
creating more works that they can sell directly to customers, without
the fear of running out of funds.
How
does art tokenization work?
The
first step to creating a tokenized art involves converting them to
art tokens that can be tradeable on the compatible exchange
platforms.
Before
the art tokens can be created and distributed, there are certain
precautions, compliance checks that have to be carried out.
Compliance
and undertaking:
Before
creating the art tokens, the compliance agency checks the
authenticity of the artwork (for already created artwork), does a
background check on the artist and an undertaking letter that the
artist is responsible for its completion and other liabilities (In
case the artist is raising crowdfund for the artwork they are yet to
create.)
Partnering
with a platform:
Often
it would be easier for the artists to partner with a platform that
they can work with to carry out all the legal formalities, hold the
escrow for the artwork and take care of the miscellaneous formalities
required before the art tokenization.
Art
Tokenization:
To
tokenize the Artwork, an art tokenization platform or an art token
development company is used, where all the necessary formalities are
filled out and then the tokens are created with the smart contract
and transferred to the artist who would their artwork tokenized.
Escrow:
Once
the tokens are created, a reputed escrow agency is set up to handle
the future transactions, track the milestones to release the payments
in a timely manner to safeguard the investments of the investors and
to ensure a smooth payment process between the artist and the
investors.
Listing
on a Tokenized art asset Exchange
Before
listing the art tokens, the exchange carries out a check for all the
necessary compliance and the details about the escrow. Once the
exchange approves the art token, it is listed for trading. Anyone can
buy/sell or HODL them.
What
are the features of the Art Tokenization platform?
The
Art tokenization platform offers the ability to create, market and
distribute your tokens to interested investors. The smart and
thoughtful features that have been built into it allows you to
conduct a Security Token offering or an
Initial Token offering easily. Some of the features
Accepting
Payments:
Accept
payments using Stripe, Paypal, Bank Transfer, Bitcoins, and Altcoins.
Easy
distribution:
Send
tokens easily to those who have paid for the tokens right from the
dashboard. All the data with the proof is received from the user and
displayed here for you to verify easily.
Custom
Token price change event:
Set
the price to automatically change at a pre-defined time. The new
price will take effect till the next price change event. You have the
option to notify your users before the date too.
Marketing
module:
Send
email campaigns and SMS campaigns to people who have purchased your
tokens, to those who haven't or both. Notify users of new events,
Show them the progress of your STO related events.
Campaign
Scheduler:
Send
Now or Schedule it later. Leaving somewhere? Just save and Pick up
where you left from the drafts.
Track
Campaign performance:
Right
from your dashboard, you can track the individual campaign's
performance easily, see if a user has received, opened, unsubscribed
from the campaign. Campaign Bounce has been handled as well. If a
user unsubscribes, they won't receive campaigns any further, this
reduces your spam rate.
Company's
Income / Expense Tracking:
Built-in
Income and expense tracker allows you to create income-expense
reports right from the dashboard and display it to your investors to
garner trust.
Dividend
Payment Configurator:
Configure
dividend payment cycles, half yearly or every quarter. Set the
ex-dividend date, cum-dividend trading period and the percentage you
will be paying your users. The system automatically calculates the
amount you will have to pay and displays it in your admin panel at
every interval set.
Dividend
Payments:
Making
your STO truly compliant with government regulations, now you can
notify your users of the dividends you have paid them. All from your
dashboard.
GDPR
Compliant:
You
can now display a mandated GDPR message to the user on the site. Set
it on the dashboard.
Thanks for reading our
Content. To know more about our Services, kindly Visit our Website:
Crypto Soft Malaysia
Unit-3, Level 22, The Gardens
South Tower, Mid Valley City,
Kuala Lumpur- 59200
+(60)-0392121566
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