Freeport, an innovative fractionalized art platform, is offering art enthusiasts a unique opportunity to own a part of original, signed Andy Warhol screen prints through Ethereum-based tokenized shares. Starting at a modest $20 per tokenized share, the platform democratizes fine art ownership, though a minimum purchase of 10 shares is required.
As a community gallery and platform for tokenized fine art, Freeport’s inaugural collection features a curated set of four iconic Warhol screen prints. The prints, which include Warhol’s “Marilyn” (1967), “Double Mickey” (1981), “Mick Jagger” (1967), and “Rebel Without a Cause” (1985), are priced between approximately $20 and $78 per share. Notably, the “Mick Jagger” piece also carries the signature of the legendary Rolling Stones frontman.
The landscape of fine art collecting changes today.
Invest in shares backed by historic pieces – starting with a collection by the legendary Andy Warhol.
Marilyn. Mick Jagger. James Dean. Mickey Mouse
✅Iconic art
✅Real investmentsOffering circular https://t.co/ADmCJcE1dN pic.twitter.com/o9iaLqpzPx
— Freeport (@freeport_app) May 10, 2023
In a bid to democratize art ownership, each art piece is represented by 10,000 tokenized shares minted on the Ethereum blockchain. Based on the share price, the estimated value of each work ranges from nearly $199,000 to $782,000. With a cap of 1,000 shares per individual, up to 1,000 people can own a fraction of a single piece through these fractionalized shares.
Fractionalized assets, whether digital or physical, allow for broader access to investment opportunities by breaking down a whole asset into smaller, more affordable shares or pieces. In addition to creating liquidity for previously illiquid assets like physical and digital art or real estate, this method enables a wider audience to invest in an asset.
If Freeport successfully sells each original work, the prorated profits will be distributed to the token holders, following which the tokens will be permanently destroyed or “burned”. In the interim, token holders can view and display a digital version of each piece via Freeport’s app. The platform also plans to establish a secondary market for shares, enabling holders to sell their shares while the original asset remains in Freeport’s custody.
Freeport takes pride in being the “first company of its kind to complete a Regulation A review” with the U.S. Securities and Exchange Commission (SEC) for the launch of a “blockchain platform for investment grade art”. This development could offer reassurance to potential collectors, considering the SEC’s increasing scrutiny on crypto companies and the unclear regulatory landscape surrounding fractionalized NFTs.
“Baby” Jane Holzer, a renowned fashion icon and original owner of some of the Warhol prints, endorsed Freeport’s mission to democratize art ownership. In the past, Warhol’s work has been fractionalized and sold via blockchain by other companies, including Dadiani Syndicate in 2018 and Showpiece platform in 2022. However, Freeport’s initiative stands as a significant step towards bridging the gap between art appreciation and ownership for all.