Art Tokenization Platform-crypto soft india
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 India
1/124,
DLF IT Park Rd, Ramapuram, Chennai,
Tamil
Nadu 600116
+91
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