Charitable Art Auction benefits emerging Blockchain inspired Artists & Community
Bidding in auction and collecting in the US$2 trillion arts and collectibles (A&C) asset class with verifiable provenance has just become easier for crypto-holders and art enthusiasts alike.
At the upcoming Ethereal Summit, for the first time, arts and collectibles will be written into an immutable registry for unique assets; the Codex blockchain. This means that for winning bidders, an unbroken record of ownership and authenticity for the purchase will be provided.
While the event is taking place in New York City this week, May 11 and 12, crypto-holders internationally with an interest in art are invited to participate and bid in the Live Art Auction through LiveAuctioneers, which utilizes the first Codex Protocol DApp, Biddable, and renders an instant, private, and secure alternative to purchasing fine art during and beyond the upcoming live auction. Mobile users may bid through the app.
In partnership with ConsenSys, the live auction will be a part of a broader sale of artworks hosted together with Rare Art Labs. As part of a larger sale of crypto-related art, there will be both fixed-price sales and a silent auction.
Interested parties can expect to see a wide variety of crypto-themed artwork from top artists in the space. The catalogue of works available can be viewed here: www.codexprotocol.com/ethereal.
“The sale of artworks by Codex Protocol and Rare Art Labs will surely be a highlight of this year’s event,” said Ethereal Co-Creator and ConsenSys Director Jesse Grushack. “It will showcase to the world that blockchain is more than just a buzzword. It’s a technology with the potential to make a tangible impact on the modern economy and society. We look forward to seeing the auction promote artists working in this important area and demonstrating real interest in arts and collectibles from the crypto community.”
At Codex, we believe the artistic community plays a vital role in the development and dissemination of new technologies; therefore, proceeds of the auction will benefit The Art and Blockchain Foundation which offers financial support to the community at the intersection of art and technology who have started to engage with blockchain in new artistic and creative ways.
Mutually beneficial for the crypto-community and other smart investors, art is an important and viable part of a diversified portfolio. Wealth managers in recent years have been proactive when it comes to addressing art and collectibles. According to the Deloitte Art & Finance Report 2017, the global auction market saw total sales growth of 319% between 2000 and 2016.
With a variety of issues that have always plagued the art-world centered around provenance and privacy poised to be solved as a result of the adoption of blockchain technologies like the Codex Protocol, one might assume that interest in the arts & collectibles market will continue to grow considerably in the coming years, as;
- a decrease in major risks emerges with the increase of verifiable provenance; providing opportunities for transacting, insuring, fractional ownership, and asset-backed lending
- the emotional and cultural benefits provided by an alluring tangible assetare recognized
- the non-correlation to changes in value of core financial markets such as stocks, bonds, and cryptocurrencies are increasingly desired
To understand why the A&C asset class is an important one for investors, consider this. CNBC reported that in recent years those investing in funds like The Fine Art Group have seen an uptick in;
“clients who are interested in having their eggs in 20 baskets as opposed to three” noting “clients allocate roughly 5 percent of their wealth to art, but some allocate 20 percent or more.” with the observation that “After 2008, investors got burned [by being under-diversified], so they are delving in with smaller amounts to start with.”
While economic changes may have led to higher correlations in some stores of value and therefore higher volatility in the last decade, the A&C asset class has the benefit of non-correlation. As the balance puts it plainly;
“Generally speaking, the lower or more negatively correlated certain asset classes are to each other, the more diversification benefit of having those asset classes in an investment portfolio.”
The A&C asset class is a store of value, in its non-correlated nature, somewhat similar to gold. However, unlike other major asset classes, the arts & collectibles market has lacked a formal title registry, until now. Blockchain and the Codex Protocol solves this, which is why industry stakeholders are keen to utilize and encourage adoption for decentralized provenance verification. Codex is backed by an industry consortium of leading industry stakeholders.
By bringing trust and efficiency to the marketplace with a decentralized title registry, more buyers will acquire the objects they desire, more sellers will receive a fair value for their items, and more intermediaries will grow their revenue. A rising tide lifts all boats.
To participate in the important event that marks a significant turning point for artists, art enthusiasts, and sophisticated investors, be sure to register and participate from anywhere in the world instantly, with privacy, security, and ease.
Sign up to participate in the auction here: www.codexprotocol.com/ethereal
Adrienne Burke-Moran, Content & Community at Codex Protocol