Maecenas is creating a decentralized art gallery where shares of fine art are bought and sold.
Full report by Crush Crypto: https://crushcrypto.com/analysis-of-maecenas/
Download the free ICO Guide which contains 6 simple steps for analyzing any ICOs to find the winning projects: https://crushcrypto.com/youtube/
Note: This is not a paid review. We do not offer promotional or advertising services. Our content is based on our own research, analysis and personal opinion.
What does the company/project do?
Maecenas is creating a decentralized art gallery, which is a blockchain-driven platform where shares of fine art are bought and sold.
Currently, only the rich can invest in expensive artwork because the price is high and it is difficult to obtain financing for the purchase.
On the platform, Maecenas divides artworks into fragments and users can invest and trade those shares. Users can now own a fragment of an artwork, whereas in the past they could not afford the whole painting or sculpture.
Users on the platform can also trade the shares between each other to create a liquid secondary market for those artworks. With Maecenas, artworks can be traded like stocks.
Currently, the artwork trading industry is inefficient. It is an old-fashioned, illiquid and often opaque market. Galleries typically go through a few reputable auction houses that charge huge fees — up to 25 percent. In contrast, Maecenas charges a flat fee of 2-6% for monetizing the artwork.
What are the tokens used for and how can token holders make money?
ART token is a utility token that is used to settle transactions on the platform.
As all the ART in circulation added together represent 100% of all the artworks on the Maecenas platform, the market cap of ART should be at least the value of all the artwork on the Maecenas platform.
This is similar to the concept where the market cap of a company should exceed the net asset value of that company because that is how much shareholders will receive if the company is liquidated.
Therefore, there should be a floor to the value of ART. If token holders believe that more artworks will be listed on the Maecenas platform, ART market cap would exceed the value of all artworks currently on the platform.
The more artworks that is being brought to the platform, the more valuable ART tokens should be, because more ART tokens (in value) will be required by the platform.
- The artwork trading industry is large ($3 trillion in value with $65 billion worth of arts being traded each year) but is still considered a niche market. It is also very old-fashioned and inefficient, so it is ripe for disruption.
- The value of ART has a floor – the value of all the artworks on the Maecenas platform.
- Maecenas is one of the first cofound.it projects and went through the rigorous vetting process employed by cofound.it.
- Other than artworks, there is potential for Maecenas to expand into other physical assets including antiques, classic cars, gemstones, vintage liquors, and rarities.
- Network effect is present. The more people use the platform, the more valuable the platform is (more liquidity, more selection of artworks).
- If Maecenas is able to secure partnership with museums / galleries, then it can increase the value of all the artworks on the Maecenas platform substantially.
- Part of the value of a piece of artwork is the ability to enjoy it. Rich people buy expensive artworks partially for the bragging right. With Maecenas, users cannot enjoy the artwork – hang on the wall, see it, touch it physically.
- Liquidity for the individual artwork can be an issue. Let’s say you have invested in a painting. If the liquidity for that painting is very thin, it would be hard for you to convert the investment back to ART.
- According to LinkedIn, certain team members, including the CEO and CTO, are still working at DXMarkets. It is unclear how they will allocate their time between the two projects.
The information in this video is for educational purposes only and is not investment advice. Please do your own research before making any investment decisions. Cryptocurrency investments are volatile and high risk in nature. Don't invest more than what you can afford to lose. Crush Crypto makes no representations, warranties, or assurances as to the accuracy, currency or completeness of the content contained in this video or any sites linked to or from this video.