Artex, the First Blockchain-based Marketplace for Selling and Investing in Artwork
The ‘Mona Lisa’ painting has been the talk of the art world since the 16th century, with its value going to heights that not many people predicted. However, the art industry has grown and gained relevance in the investment sector. Who would have thought that there would come a time when fine art would be linked to one of the most outstanding yet controversial technologies, blockchain tech? This venture is attracting crypto investors into the art industry, thus widening the industry’s target gap.
Individuals and artists alike are looking to showcase their pieces of art to the wider target market, allowing you and other art enthusiasts to appreciate unique pieces. Artwork has been a controversial field over time, with cases of forgery, failure of ownership, as well as a lack of transparency. Such concerns have pulled down the arts industry, with different people taking credit for other artists’ pieces of art. To help curb the existence of such concerns, the emergence of blockchain-based investment platforms focusing on fine art are providing long-term solutions for the art industry.
WHAT IS ARTEX?
Artex, a blockchain-based art piece exchange platform, is the first and only platform of its kind, serving as an acquisition platform to make the art market less elitist. The key objective is to allow individuals to participate in the state-of-the-art works all the time (24 hours a day), with any amount, as well as with ease of asset management, thus serving as an investment platform. This platform also offers insurance on pieces of art based on transparent pricing. On the Ethereum blockchain, Artex employs blockchain to help record the provenance of artworks. This record will include the transactions history, as well as available art critiques. The launch of its mobile application seeks to embrace not only the elite persons (art dealers or art experts) in the art field, but also embracing the upcoming artists. The platform’s key objective is to connect and unite dealers, photographers, collectors, galleries, art critics, and investors, all in a single platform.
Pricing of art pieces is done by renowned art experts in the field to ensure that art enthusiasts and investors obtain value for their interest. The experts are active from different countries to promote transparency, as well as gain favour with a wider range of its target market. The artwork is tokenised on the blockchain in accordance to its appraised value, allowing individuals to buy and sell the amount of art works participation listed, as well as the pre-sale process.
This platform allows individuals to trade as well as manage fine art investments at their fingertips at all times. Gone are the days when making money from fine art is limited for the chosen few who are privileged in the industry. Thanks to Artex’s smart contracts, individuals and investors can buy and sell any amount they wish to from works that are listed during the pre-sale process. The Artex platform has 4 major objectives:
– To provide liquidity to the art market
Fine art is often an illiquid asset, despite owning several investment qualities, especially when they are just collected, without being securitised or diversified. The Artex platform offers liquidity features that will make it easy to provide liquidity in the market.
– Promote transparency, thus supporting artist rights
For any market to be successful, there must be a healthy relationship and transparency between the seller and the client. The art market is arguably one of the least regulated yet legal big-budget markets. To address this concern, Artex functions under blockchain technology to promote transparency, while at the same time, eliminating the need of intermediaries. When looking at transparency in art, we are looking at aspects such as:
– Clarity in pricing and value of the artwork
– Terms of purchasing
– History of the art piece
– Consumer claims
The concept of transparency will address concerns such as distribution or availability of fakes or forgeries and looting of antiques.
– Offer a democratic distribution channel of finance in the art market
Artex offers an investment platform that allows for equality among individuals and investors. The platform will address principles such as individual rights, provide check and balance, as well as freedom of participation.
– Operates a crypto exchange based on an asset/commodity
Initially, many individuals have to pay in fiat currency, even for a crypto investor. This gesture has been restrictive for many crypto enthusiasts. Artex has closed this gap by introducing a crypto exchange based on artwork as the asset. Crypto investors can widen their portfolio coverage, considering that this investment platform allows individuals to easily trade in fine art with cryptocurrency.
WHAT ARE TRADITIONAL METHODS OF SELLING ARTWORKS?
Traditionally, selling of artwork including paintings and sculptures is ongoing without much benefit to the artists. This is because of the presence of intermediaries. As such, you will find art galleries that help individuals to showcase their artwork. There are different forms of art, and artists need to identify their target market. By identifying the target market, artists are able to acknowledge which is the best way to sell your art without compromising on its value. Traditionally, there are different methods that people are using to sell artworks.
Art galleries promote diversity because they can incorporate different genres of art. When considering galleries, you will have two options to work with. Artists can sell their art directly to the gallery management or you can choose to sell on a commission basis. When the gallery buys a piece upfront, artists agree on the art’s value and settle with the artist as a one-off payment. Alternatively, commission sales works from agreeing to display the artwork in the gallery for a specific period, and if it is sold, the two parties split the sales as agreed. The limitation to this method is the income split.
Auctioneers are a method of selling artwork in cases where professionals bid for the right price. It is a method that has been in existence for a long time. Art enthusiasts come together and bid on the art. However, this method is ideal for well-known art pieces or pieces from renowned artists, so that buyers can compete to purchase the artwork.
Art enthusiasts may come in handy when seeking to sell artwork. Art collectors buy artwork pieces that are unique. This especially works for painting. Collectors are willing to pay for paintings of high value to ensure that they retain its value.
– Online/Social media platforms
The advancement of technology is allowing individuals to display their artwork online, thus reaching out to a wider target market. There are several websites online that users can use to showcase their pieces. Some websites are specific to the type of art they market, making it easier to reach out to their target market.
Networking refers to selling of your art through the use of other artists or art enthusiasts who have the right connections in the market. This is why artists are linking together to support each other’s efforts in the industry.
While the above methods for selling art are applicable, they come with challenges such as intermediary concerns, a lack of transparency, artist concerns over low pay, as well as forgery. In this, there is a gap that current methods of selling art need to close to boost better experiences.
HOW DOES ARTEX EMPOWER THE FUTURE OF FINE ARTS?
Artex features a working model that is in line with asset owners, galleries, artists, and auctioneers to outline their common interests. The platform model and functionality seeks to deliver on liquidity, transparency, security, as well as easier and faster access of fine art in the market. This platform is paving a way for a democratic means of art investment. Serving as an investment platform, Artex empowers the future of fine arts, not only through greater communication and marketing, but also through bettering financial standards. The use cases in which Artex will empower the future of fine arts are as follows:
– Democratising art investment
Crypto investors can now invest in fine art, and while many individuals initially had to purchase an entire painting or sculpture, investors can now own a section of a piece of art. This gesture is making it possible for more individuals to invest in the art industry. Rare fine art pieces are limited because there are very few in the industry. However, it is currently possible for more crypto investors to come together and invest in fine art. To meet this objective, Artex is tokenising art to enable more individuals and not just the ultra-rich to invest in art. By tokenising art, people can invest in segments when buying art. For example, if a piece of art is going for $40,000 in the market, an investor can come in and purchase the value worth up to $15,000 and allow others to purchase it until its full value is arrived at.
– Presence of a decentralised art exchange
Introducing decentralised art exchanges such as Artex places a key focus on the art industry. Whereas buying and selling of art on online platforms has been evident, the growth rate has been rather slow. On the other hand, exchanges have initially placed a focus on the financial industry. However, the presence of art exchanges has led to the widespread of global online art sales. The growth rate of art sales from the use of art exchanges is steady, promising the art future a more globalised and active market, not only for crypto investors but also for art enthusiasts.
– Monetising digital art
Artex, a blockchain-based platform, has the capability to monetise digital art. Digital art ranges from illustrations, text graphics, to videos. Therefore, Artex allows individuals from the art industry to showcase their artworks. Artex features the Artex token, which allows individuals with its ecosystem to easily trade using the token.
– Artwork ownership provenance and authentication
The fear of forgery and buying a fake piece of art at the value of an original can be heart-breaking. To avoid such cases, it is important to be able to stamp artworks and ensure ownership, while at the same time, being able to identify the chain of ownership. Provenance will describe the chain of ownership, which will go hand in hand with authentication, which proves the authorship of the artworks.
IS ARTEX’S USE OF BLOCKCHAIN REVOLUTIONISING THE INDUSTRY?
Blockchain is revolutionising the functionality of many industries, and the arts industry is no different. While blockchain is evident in the financial sectors, the arts industry is currently tapping into the blockchain capabilities. Artex is revolutionising the arts industry through blockchain in the following ways:
– Guaranteed intellectual property
The platform secures innovations such as copyright through blockchain, thus giving the ability to store intellectual property (in the cloud) and manage the property when needed and from any place. Other than guaranteeing copyright, it also improves transparency, thus reducing cases of forgery in the industry. More artists will want to showcase their pieces without the fear of losing the artwork’s value from corrupt dealings.
– Reducing the number of intermediaries
Selling art or finding the right people to work with in the industry can be a challenge when using the traditional methods of selling art. Therefore, individuals need to identify a link they can use to reach out to their target market, thus ending up with several intermediaries before meeting the key objective. With the help of blockchain technology, artists can now eliminate the need for intermediaries because Artex offers a platform that links these people. This strategy is not only advantageous because the artist is acknowledged but also because costs are minimal. The link Artex provides will help individuals from all walks of life without providing privileges for the elite in the industry. Artists can now gain control over their work thanks to Artex’s blockchain-enabled platform. In addition, aspects such as transparency, traceability, and lower costs are not compromised.
– Traceability of artwork
Blockchain is a complex cryptographic tech, allowing users to better trace artworks through looking back at a painting’s or sculpture’s journey, right from its creation to its current ownership. Individuals will be able to retrieve information such as sales, analyses, certifications, appraisals, as well as studies about a specific piece of artwork.
Artex will list artwork under two scenarios, allowing for either 100% public offering of the artwork or a public offering of 49%. For the 100% artwork public offering, Artex will physically host the artwork with the platform, entirely taking care of insurance, storage and maintenance costs. In the second scenario, the insurance value of the artwork is tokenised. In this, 51% of the tokens are locked for a 1-year period with smart contracts, thus guaranteeing trade of 49% of the artwork on the platform.
ARTEX TOKEN EXPLAINED
Artex Token, the digital currency of the Artex ecosystem, will be used for shopping transactions, as well as for other privileged functions on the platform, as specified on its protocol/code. It is important to note that the Artex token serves as a functionality token only on the platform’s ecosystem. This means that this token is functional as an interoperable utility, and therefore, it is not a medium of exchange by the public as a source of payment out in the public market.
The maximum supply of the Artex Token in the market comes to 100 million, with 50% of the total supply in circulation in the first year. From the remaining 50%, the supply of the Artex token will be laid out in pre-determined periods at intervals within the following four years.
WHY THE ARTEX TOKEN?
The Artex platform introduced the Artex Token to provide a secure and convenient mode of payment between users on the platform operating within the ecosystem. Functioning on blockchain and smart contracts, users will benefit from improved process efficiency. Smart contracts eliminate the need for intermediaries and therefore, reduce the chances of manipulation from third parties. Other than efficiency and convenience from smart contracts, users will save on costs as a result of eliminating intermediary commissions or pay. Overall, the inclusion of smart contracts promotes autonomy, offers a secure yet private backup for information, automation of tasks, while at the same time, upholding on accuracy.
WHERE TO USE THE ARTEX TOKEN
Understanding the use of the Aertex token requires you to identify the different scenarios you can use it in. First and foremost, the Artex token is a functional utility token that will serve as a medium of exchange for the platform users in a decentralised manner. In this, this token remains relevant within the Artex ecosystem.
CIRCUMSTANCES IN WHICH ARTEX TOKEN CANNOT BE USED
Tokens in general offer a medium of exchange, but it is important to check on its limitations so you understand where you can trade it and what you can buy using the token. Outside of the Artex ecosystem, this token is not applicable for use. You cannot use it to buy or pay out for goods and services from other platforms. In addition, the Artex token cannot be discharged as a form of settlement.
Owning the Artex Token does not provide individuals with any form of rights or shareholding on the platform. This means that simply because an individual owns a token, this individual cannot make any suggestions or create any content for the Artex ecosystem. All decisions are made by the management. Token owners are not entitled to receive fees or dividends; it is not a source of investment return.
Artex Contract Address: 0xf1b032e7225d1c9068ce317a956a0e8007591ba0