RS: Can you tell the readers the premise of The Art Token (TAT), and how it works?
OTR: With TheArtToken (TAT), a token has been created that is backed and secured in value by a solid, internationally curated art collection. Internationally traded masterworks of contemporary art form the basis for security and permanence of investor’s crypto assets.
TAT is a revolutionary approach to bring art as a stable, successful and secure alternative asset class on the blockchain. Every TAT is backed by 100% carefully curated renowned works of art. With its 1-to-1 ratio TAT has no additional or hidden costs/fees, making sure that 100% of the invested capital is transformed into a tangible asset. TAT secures digital currencies through analogue tangible assets.
Additionally, investors can benefit from a wanted a fully functional art redemption process, where every TAT holder can exchange their TATs with physical artworks.
RS: Why do you think art it is a good investment vehicle?
OTR: Scarcely any other asset class has been able so sustainably multiply the capital invested. The value increase for artworks has been constant and even achieves an astounding profit, when other investment products suffer huge losses because of economic crises. Especially the category “Post War & Contemporary” is particularly suitable as an asset class. Leading as the safest asset since more than 50 years with an annual performance of 10.85%.
RS: Do investors have any control when an art piece is sold and what value an art piece is sold for?
OTR: TAT is managed by a team of experts covering all sectors of the art market, to maximize the long-term Net Asset Value (NAV) of its underlying art collection. Generally, a buy & hold strategy is pursued, whereby market opportunities can be used in the interests of investors. Therefore, the whole team constantly monitors the market deeply and will decide in the best interest of TAT.
RS: Is there any type of dividend that is paid out to investors?
OTR: There is no dividend payout. Every transaction is reinvested into the art collection of TAT. Value creation and preservation is the main priority for TAT.
RS: What is the holding period for TATs and how long do investors need to hold their TATs to retain full investment value?
OTR: There is no minimum holding period. Investors can sell their tokens on partner exchanges anytime or directly redeem their tokens into art. However, by holding TATs, investors benefit directly from the value appreciation of the underlying art collection and securing their wealth through a diversified asset class.
RS: What do you think is a realistic date that investors will be able to trade TAT on an exchange?
OTR: We are in the process of setting up agreements with international exchanges. We are looking forward to announcing our partnerships as soon as possible. Nevertheless, we expect the listing to happen in summer 2019.
RS: How frequently will the art that TAT holds be valued/audited?
OTR: TAT will run both independent external audits and internal value analysis on a quarterly basis. Investors will have access to price developments and audited documentation on the TAT website.
RS: The TAT website notes that the TAT token can be redeemed for physical art works – is this only artwork that TAT possesses or does TAT have partnerships with other artists/galleries/etc.?
OTR: Yes, the redemption process includes all artworks TAT possesses. TAT is not meant to be a “crypto-art-gallery”. TAT aims to maximize the safety and protection of the invested currencies through its ever-growing art collection.
RS: TAT notes that “100% of the invested capital is transformed into art”, while this is great for investors that their entire capital is going to art, how does this work for monetization and the initial discount?
OTR: It is crucial to us, that investors can make sure not pay any unnecessary fees or facing hidden costs. Therefore, we decide to completely renounce initial or annual fees/costs. TAT’s purchasing policy aims to buy whole art collections in large numbers and not single artworks piece by piece. Through that TAT earns a margin, which pays all expenses. This is all based on our access to an excellent partner network that has grown over the years.
To be able to give away the initial discount TAT waived its margin.
RS: Is there anything else you would like to tell the readers about The Art Token?
OTR: Recent developments have shown how important security tokens can be in terms of wealth preservation. TATs underlying art collection was stable in value while other assets, tokens and currencies remained highly volatile. TAT is a unique opportunity to bring physical assets into the digital age. It combines the best of both worlds and lets you profit from the joint benefits of the newest open blockchain technology and the oldest man-made tangible asset in the world. We welcome you to your access to a stable, successful & secure alternative asset class, that is able to sustainably multiply invested capital since decades.