Since ancient times, freeports have been used to store and trade collectibles and high-value art. They offer wealthy investors and collectors a tax-free and secure way to sell luxury assets through back channels.
The advent of blockchain has made it possible to offer these special facilities in a more transparent and democratic manner. Freeport is a new platform which will offer fractional fine art investments in the next year. They plan to draw masterpieces from the private collections of wealthy people and make them available to ordinary investors, not only the super rich.
This is possible because of the SEC-compliant fractionalization and tokenization approach to fine art assets. Multiple individuals can invest in one asset (much as fractional NFTs), just like they can with an Andy Warhol painting or Jean-Michel Basquiat painting. Fine art can be accessible to all income levels for a few hundred dollars, rather than the thousands they would otherwise have to spend on a complete piece. Profits are distributed proportionally to investors when the asset is resold.
They can also use ERC20-style tokens of Ethereum to access the web3 economy. This includes decentralized finance protocols (DeFi), which allow lending against hard assets. This is a new way to bring valuable assets onto the chain.
Freeport will let the artwork be visual experienced rather than just being a token in a wallet. The virtual gallery allows people to interact with assets within Freeport and can be viewed and interacted with. Soon, they will also allow users to socially like and comment on artwork. It is also one of the most clean NFT galleries that we have ever seen.
Freeport is poised to be the leading physical art investment platform by taking a responsible legal approach and leveraging new visual technologies, web3 paradigms, and other technological innovations.
Members of the NFTCulture group have been closely working with the Freeport team in preparation for their April launch. Colin Johnson, their CEO, was available to answer questions and provide insight into Freeport’s goals.
We identified a major customer need: normal people should be able to invest in fine art, which was historically an asset class that was reserved for multimillionaires. We believe more human value should be transferred onto blockchains, where it can be stored, traded, and fractionalized the most efficiently. We are fortunate enough to have direct access to the vast Warhols collection of Baby Jane Holzer. These factors provided us with a solid foundation to help build the future of art collection.
Michael Haber, an icon in NYC’s art brokerage scene, is advising the team. Baby Jane Holzer, a real estate investor, is also a former Warhol star. Holzer, Warhol’s first muses and lifelong friend, was featured in his famous early silkscreen productions. Freeport’s first collection of artwork will feature original work from Haber and Holzer.
What makes this Freeport so special?
We are subverting the concept of classical Freeports. These are places where the wealthy hide their art or trade it for tax advantages. We don’t want artwork to be kept by the elite.01% and we want it to be available to everyone. We want to make the art more accessible so that everyone can enjoy it.
What’s the price?
We will be selling 1,000 lots at the initial sale. Prices range from $200 to $850 depending upon which piece you are interested in buying. This is a rare opportunity to be exposed to some of the oldest artworks on earth. These assets would typically cost hundreds of thousands of dollars – and you might be lucky enough to find them.
Do you know of any other mechanics?
Each token is an equity investment and our offerings will comply with the SEC regulations. After its launch, tokens will be able to trade on the secondary market at Freeport. Holders will receive a proportional share of the proceeds when the paintings are resold.
While NFTs are the focus of attention, Freeport assets will be available in the form ERC-20 derivatives. These derivatives will comply with the current SEC guidelines. Tokens can be divided into smaller units, much in the same way as stocks or classical equities. The art can be divided between multiple people in any percentage they wish, although each asset has a maximum equity of 10%.
What vision does Freeport Gallery have?
The premier place to buy, sell, and collect all your art investments, digital or physical, will be Freeport Gallery.
What’s the significance of provenance in art?
Art is subjective in its core. The art of storytelling is the source of its value. Stories are universally relatable to all people. Provenance is the story behind the physical item, which augments what might otherwise be just aesthetic.
Find out more about Freeport
What is Fractional Art?
Fractional art is art that is controlled and owned by digital tokens rather than physical objects. These digital tokens may be used to represent access, ownership, or other rights in relation to the art.
Fractional art has the advantage of being more accessible and easily accessible. Fractional art is not limited to exhibitions and galleries, but can be accessed online by anyone who has an internet connection. This allows artists, galleries, estates and many more to reach a wider audience and sell art worldwide.
Fractional art can have many other benefits. It could also revolutionize how art is valued. Traditional art is usually determined by subjective factors like its historical significance or aesthetic value. Fractional art can have its value determined by objective factors like rarity and demand. This could lead to a fair and transparent art market in which artists are paid more for their work.
Fractional art is a major shift in how art is made, valued and collected. It could revolutionize the art market and make it more accessible, flexible and fair for collectors and artists.
Learn more about fractional ownership and its benefits, including liquidity, accessibility, and appreciation potential, here.
span style=”font weight: 400 ;”>*Disclosure : Although this article is not sponsored, members of NFTCulture have supported marketing efforts for Freeport. Please review the following language, as they are qualified by the SEC.
span style=”font weight: 400 An affiliate to Freeport anticipates making an offer of securities under Tier 2 Regulation A. The solicitation for money and other consideration is not valid. Responses will not be accepted. After an SEC filing has been qualified, no offer to purchase securities can be accepted and no part thereof can be received. Any such offer can be withdrawn or revoked at any time without obligation or commitment. A sign of interest does not imply any obligation or commitment.
Fractional Art Revolution: Freeport is changing things. NFT CULTURE published the first article.