Estimated reading time: 4 minutes, 47 seconds
Who has the hottest ICO? In this episode of ICO or NO, Jeremy talks about Maecenas, starting September 7th. Jeremy goes over how Maecenas plans to challenge the existing art dealers by using the blockchain to provide access to fine art!
What is the Maecenas project and what problem does it hope to solve?
Maecenas describes itself as a decentralized art gallery and the first blockchain platform that democratizes access to Fine Art. Currently owning or a Picasso or a Monet is a pipe dream for most people, with some pieces going for several millions of dollars. Additionally, art lovers are limited in seeing their favorite pieces for geographic reasons. Not everyone can just get up and go to the Louvre in Paris to see the Mona Lisa. These two problems is where Maecenas comes in.
Previously if you wanted to own art you had to buy a whole painting, and like we said before, very few people can afford that. Art has proven to be a great way to store wealth and be an investment opportunity, but again, this option is only available to the economic elites.
Maecenas provides an innovative solution by selling shares of the painting in the form of tokens. The token Maecenas has created is called the ART token, which has a finite supply, and can be used for multiple functions on the Maecenas platform. The platform and ART token allows an owner of a painting to list it on the blockchain, and sell shares. When a majority shareholder decides to sell the piece? All they have to do is buy out each shareholder.
A huge problem with art collection is fraud. By utilizing the blockchain, authenticity can be confirmed, so you can use the platform with confidence, without the fear of getting ripped off.
Overall, Maecenas goal is to connect artists, collectors, and investors directly via an open blockchain platform with smart contracts, essentially eliminating the need for brokers and art dealers to facilitate a transaction. We’d replace the need for trust based on reputation with trust in the decentralized blockchain.
What are the market conditions facing the project?
There is an estimated $3 trillion worth of fine art in safe storage, with about $65 billion of that being traded annually through auction houses and art dealers. That isn’t a big market… It’s a huge market….
Maecenas is using the blockchain to change the art game. They point out that the current market for art dealing is largely controlled by two auction houses, Sotheby’s and Christie’s, combining for about 80% of the secondary art market volume.
The two centralized organizations have worked to keep their businesses solvent, and a lot of that resulted in the stemming of innovation and limiting competition.
Instead of competing with these two dominant companies, Maecenas has identical commission structures, with 25% being charged for buyers, and sellers paying even more!
Another way that the existing powers have tried to limit competition is that they control all access to marketplace information. Non-expert sellers have no point of reference to determine market value, so they really have no choice but to turn to one of these two auction houses.
Who’s the team behind the Maecenas project?
This project has a full team of developers headed up by Marcelo Garcia Casil, Jerome Croisier, and Miguel Neumann. The only thing that really jumps out here Miguel Garcia Casil may or may not have been involved with one coin which is a project that ultimately kind of went up in smoke… Do your research on that.
The only other thing that really jumps out to me about their team is the advisers that they actually have are several big hitters and several investment firms. It looks like they have the backing of some solid capital on the investment end.
Additionally, Maecenas already has working partnerships with Swisscom, Capco, Polytech, and Fusion. And that just shows me that they have existing business relationships which should make their path a little bit easier.
What are the details of the ARToken ICO?
ICO or NO covers some of the hottest tokens sales from the coolest projects! Jeremy, though his patented Four Question System*, dissects each project to help you better understand the token sale! Check out more of our ICO or NO episodes here, and subscribe to our YouTube channel for future ones!
*Patent Maybe Pending