Beyond Art Block chain

Future Vision for Art -  to use  a block chain  trust system that allows for art to be verified bought and sold  at any time with funds moving from buyer to seller in an instant with  very low transaction fees is just around the corner. 

The decentralized art block chain will also allow many people to participate in owning the same work of art as a crowd funded purchase using smart contracts which set the rules for escrow, sale and the resale and hurdle rate prices being achieved before the sale can take place.  Jonathan de Rin has a love of technology and art and feels  that the time is now  to revolutionize the art market.
The Art 8 block chains of the future will provide safe transactions, with genesis provenance documents – with chain of ownership for rare artworks – something which the blockchain could make far more efficient at lower costs. The technology of the block chain has proven that it can remove counter party risk and is ideal for implementation in the art market. 

                                             "Art is the currency of the infinite" Picasso  

If you are interested in investing in  Art as an early stage investor then please email us on info@artprincipals.com  We are looking to raise £1m or  match funding to 500 bitcoin worth circa £1m. Funds to be used  to set up the office and dev team in Switzerland  near Lake Geneva. The project is a 6-12 month project, with an initial coin offering in 6 months time followed by  the main offering in month 12. The investor will have all his or her capital repaid in full on a successful ICO and will retain an equity stake TBA, the balance of the shares will be owned  by Art Research Foundation and the Dev & Management team. The investor can also buy into the ICO if he or she wants. 

Eight core teams for launch

1. Legal & Compliance team 
2. Block chain team 
3. UI team 
4. Art team
5. Management & Accounting team 
6. Prepaid debit card team 
7. ICO team 
8. PR & press team 

The start up team is currently only 4 persons + 6 outsourced consultants, and we intend to grow this after the initial fund raise to 20 persons, then  after the ICO to over 250 persons with satellite offices in USA, Europe, China, Hong Kong, Singapore.

We have already been offered a number of important paintings by private individuals  to list on the platform  with a total value in excess of $1 billion if  50%  of  these are listed successfully the fees generated to the company in the first 36 months will  be in excess of  5% x $500m  = $25m  in fees not including 2% we charge to investors to invest.
As the platform scales we plan to reduce our fees over time.

Who can use this platform

Only accredited investors can invest through the platform at this point in time. We may open access to retail investors in the future if there is sufficient demand for it. 

Private collectors, galleries and art owners can list their assets provided that they satisfy the vetting and due diligence criteria of Beyond Art Vetting committee in the early days.

What is an accredited investor?

An accredited investor is an investor with a special status under financial regulation laws. The definition of an accredited investor vary between countries. Generally, accredited investors include high-net-worth individuals HNWI, professional investors, financial institutions, and other large corporations who have experience in complex and higher-risk investments such as venture capital funds, hedge funds and angel investors.

What type of artworks will be listed on the platform?

Beyond Art focus is on AAA masterpieces and proven successful artists. Art pieces will be worth between circa 1 - 100  million USD and above.

What is the minimum I can invest in a piece of art?

The minimum investment is $500 USD, and you need to deposit at least $10,000 USD on your art8 debit card to open your investor account. Each investor will be issued with a master card debit card with an online account.  Investors can invest bitcoin, ether or any other acceptable crypto currency.  

Will you list masterpieces?

Yes. We will list paintings and sculptures that have sound fundamentals from an investment perspective but also have appeal to investors who appreciate fine art.

How do you ensure that the artwork is authentic?

As part of our due diligence we arrange for provenance checks to be conducted by reputable and trusted third-parties, including art loss registry checks and physical inspection of the property. The documents produced during the due diligence process are stored securely and protected by cryptography to ensure that they are impossible to falsify. This are refereed to as the genius documents on the block chain.

How can I validate that my art holdings are accurate?

We use distributed ledger technology (also sometimes referred to as blockchain technology) to provide a tamper-proof record that guarantees your exact holdings. This record also has a cryptographic certificate of ownership attached to it. 

You can read more about this technology by searching google for  Blockchain in Capital Markets

What happens if a piece of art is damaged, lost or stolen?

All artwork listed in the platform is protected by mandatory insurance. In the unlikely event that the artwork is damaged, lost or stolen the insurance protection will cover in excess of 100% of the asset value. All art work will have a conditional report attached to the digital certificate.

How does the investment process work?

Each piece of art goes through a strict validation process that involves external independent and trusted third parties, including provenance analysis, document validation and physical inspection if required. 

Once the validation process is satisfactorily complete, the piece of art is listed on the platform and investors can bid for it, choosing the amount they want to invest and their desired price (which can be above or below the guide or reference price). Bids are private and confidential. 

The bidding process last for a limited time set at the discretion of the Museum,gallery or collector who listed the asset. Once the bidding is complete, the highest bids are given preference and the artwork is allocated to the successful investors based on the chosen amounts and price. At this point, the monies matching the investment amount are transferred from the investor account to the art owner account, and the transaction is settled.

What are the fees for using the platform?

Listing artwork on the platform costs 5% of the total value of the instruments listed, whereas investing in artwork costs 2% over the transaction volume. Both percentages are applied to the final settlement amount to ensure that only transacted money attracts fees. Operating in the secondary market costs 0.5% of the traded amount. Market makers have access to rebates. We also offer discounts based on volume.

Do I own the art piece I invested on?

No. Ownership remains unchanged. This is one of the key innovations that reduces investment costs. Once an artwork is listed on the platform, the art owner becomes the legal custodian of the asset. As an investor, you acquire asset-backed certificates/coins  that give you financial participation in the art piece. The certificates are protected by a strong legal framework that guarantees your rights over the asset while it remains in expert hands to guarantee its safety and proper care.

What happens if the owner wants to de-list the asset from the platform?

Owners of the asset-backed certificates/coins  have a number of legal rights over the artwork. In the case of de-listing, the owner must buy-back the certificates from all current investors. There is a negotiation process that requires a minimum voting percentage of the investors coin holders  to agree to the terms, but this will generally settle at the market price plus a discretionary premium.

What happens if the owner physically sells the artwork?

This is allowed and actually encouraged. If the new owner is happy to continue having the artwork listed on the platform then the sale has no impact on investors at all. However, if this is not the case, then the asset must be de-listed and the standard de-listing process is followed. The unwind of the securitisation guarantees investors a minimum hurdle rate of return relating to the indexation of the art 

“Our vision is to enable millions of art investors to participate for  economic gain in one work of art, or a portfolio of art  by buying asset backed coins and this will grow the art market to ten times the size it is today in terms of number of investors and the total value of the art market.”

 Jonathan de Rin 

Art Research