ART OWNERS AND THE PRIMARY MARKET
The Artwork is placed on the ArtSquare’s Primary Market through a listing process. This entails the fragmentation of the Artwork into an agreed number of digital art shares to be sold and traded in the form of ArtSquare’s Digital Art Shares.
Art Owners have total control over this process:
- They get to establish the number of tokens in which the Artwork will be divided, the percentage thereof to be sold on the ArtSquare Primary Market and the currency to be used. They also decide the start and end date of the sale of their Digital Art Shares.
- They have the right to call back any number of Digital Art Shares at a predetermined fixed price.
ART INVESTORS AND THE PRIMARY MARKET
Art Investors can benefit from the listing of Digital Art Shares in a number of ways. Before the official sale of the Digital Art Shares on the ArtSquare Primary Market starts, they will have the opportunity to book any number of Digital Art Shares. Not only their requests will be dealt with before the beginning of the sale, but they will also benefit from a special price for the reserved Digital Art Shares.
The listing ends when all the Art Shares for an Artwork have been sold or on the agreed end date.
HOW DOES IT WORK?
Unlike other art investment platforms, ArtSquare allows Art Owners and Art Investors to use directly fiat currencies – such as Euros, Pound Sterlings, and US Dollars – to trade art shares. In this way, we avoid exposing our players to fluctuating exchange rates and platform fees. When an Artwork is listed on the ArtSquare Primary Market and turned into tradable art shares (Artwork Tokens), the Art Owner can choose the currency in which their AWTs will be traded. Art Investors will be able to buy AWTs by paying in the Owner’s chosen currency or converting any amount into the desired currency by using ArtSquare’s real-time conversion feature.
THE MULTI-CURRENCY WALLET
ArtSquare has designed the Multi-Currency Wallet, a tool that allows both Art Investors and Art Owners to keep track of their assets at all times. Like a financial portfolio, the Wallet functions as a storage for cash budgets and Digital Art Shares. We designed the Wallet so that Owners and Investors can assess the total value of their assets (both tokens and budgets) by having it in expressed in a single currency of their choice. We want to provide all ArtSquare’s players with a clear report that will enable them to make smart decisions about their assets.
WHAT IS IT?
The Art Repository functions as a storage for all the information related to the Artwork. The creation of the Art Repository is the first step in the process of listing the Artwork on the ArtSquare Primary Market. The Art Owner will collaborate with an Art Pro, usually a gallery or an expert appointed by ArtSquare, in producing the documentation necessary to get the platform’s approval and go forward with the successful listing of the Artwork.
A STORAGE FOR THE ARTWORK’S DATA
The Art Repository safely stores the following data:
- Details about the Artwork: this includes not only standard, museum-style information about the artwork’s (artist, date, title, medium) but also its provenance (documentation about its history of ownership and loans) and proof of authenticity.
- Information about the Modular Smart Contract (see section below)
- The Artwork’s listing parameters: these include the number of Digital Art Shares to be traded on the ArtSquare Primary Market, their unitary cost, and the details concerning their sale (i.e. start date and end date, type of auctioning method, etc.)
THE SECONDARY MARKET
When the sale of Artwork Tokens on the ArtSquare Primary Market ends, Art Investors will be able to start trading their purchased AWTs on the ArtSquare Exchange. Through the secondary market you can disinvest your digital art shares, allowing other Investors to own tokens for an Artwork even if they did not get the chance to buy them through the sale in the ArtSquare Primary Market.
HOW DOES THE SALE OF ART SHARES ON THE SECONDARY MARKET WORK?
The ArtSquare Exchange relies on a business model based on sale and purchase orders. A token is placed on the market at a predetermined price. The sale of a Digital Art Share is successful when the Investor’s offer meets the seller’s proposed cost for the Digital Art Share. Alternatively, the Digital Art Share can be sold at market value, with the purchase order executed immediately based on the best available offer.
All trading transactions happening across the ArtSquare Exchange are subjected to commission fees to be paid by either the seller or the buyer, or both parties depending on the case.