10101.art Launches Platform for Tokenized Art
10101.art has announced the launch of a new platform that offers tokenized art by renowned artists such as Pablo Picasso, Banksy, Salvador Dalí, and Andy Warhol. The platform will initially offer 1,500 random pieces of Banksy’s Turf War painting for $60 during a presale.
The platform aims to use a robust legal framework to manage ownership transfers of tokenized art. With just “two clicks,” users can complete the exchange of fractional art pieces.
Tokenized Art as a Step Towards a DAO
Owners of tokenized art pieces will receive a certificate that grants them access to a community of collectors who own the same artwork. It also allows them to own a small piece of an expensive asset that would otherwise be unaffordable.
The Challenge of US Laws in Fractionalization
According to Mitch DiRaimondo, project manager at SteelWave Digital, navigating the complex US tax code is a challenge for fractionalization projects. Investors can only buy fractions of fully leased US property through an investment fund due to these laws.
US investors are unable to see the long-term benefits of this approach because of age-old tax and ownership structuring laws and regulatory uncertainties. The lack of clear guidance from regulators further complicates the project.
Hot Take: Tokenized Art Opens New Possibilities for Ownership
The launch of 10101.art’s platform for tokenized art opens up new possibilities for art ownership. By fractionalizing valuable artworks, more people can access and own a small piece of these assets. This not only democratizes art ownership but also provides an opportunity for collectors and investors to participate in the market. However, challenges remain, particularly in navigating legal and regulatory frameworks, especially in countries like the US. Nonetheless, tokenized art represents an exciting development that may pave the way for further advancements in decentralized autonomous organizations (DAOs) and the broader adoption of blockchain technology in the art industry.
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