Industry Note on Maecenas

Published: 1st June 2018

No. Pages: 19

Report Type: Industry Note

Report content

The Industry Note is a is a comprehensive stakeholder risk analysis of Maecenas, looking at the strengths, concerns, opportunities, and challenges that define the business’s operations and strategy.

It considers the interests of four kinds of stakeholder in Maecenas:

  • Those who wish to invest in the capital of Maecenas
  • Cryptocurrency speculators
  • Those who wish to invest in artworks through Maecenas
  • The museums, galleries and collectors who place their fine art for sale with Maecenas

 

The Blockchain specific Due Diligence categories of Technology, Cybersecurity, Corporate Governance, Investor Rights, and Government Policy are considered to further determine the risks investors in the company’s cryptocurrency should be aware of.

 

Download a copy of ArtMarket.guru’s guide “How to Make and Protect Investments in Art through Blockchain Technology” to learn more about our Due Diligence methodology.

 

The Industry Note calls into question the need for Maecenas to issue a cryptocurrency at all. Three market risks related to the use of cryptocurrencies in the business model arise and these are discussed in the Note:

  • the speculative nature of cryptocurrencies in general
  • currency market fluctuations
  • the volatility of the art markets

 

The combined conditions of the three markets create a high risk environment for stakeholders who have sought to invest in artworks through Maecenas. Read the Industry Note to have a more in-depth look at Maecenas.

 

Description

One of the most anticipated and highest profile art market Blockchain initiatives in 2017 was Maecenas. ArtMarketGuru’s new report, The Maecenas Industry Note, breaks down the core elements of the company in a thorough analysis of its inner workings thus enabling stakeholders to make an informed decision.

The company’s white paper promised the Blockchain network would provide liquidity to galleries, museums and high net worth individuals by providing digital shares in works of art they house.

The company uses its ART token in two ways: to convert the value of an artwork into fractional financial units and to provide a way for investors to purchase artworks through Blockchain. Through ART tokens, stakeholders can use tokens to bid on up to 49-percent ownership of fine art.

Maecenas intends that Blockchain will provide ART token holders with transparency on all transactions involving an artwork, as well as records of provenance and certifications of authenticity.

In 2017, the company’s Initial Coin Offering (ICO) of its ART token raised more than US$15.5 million.

 

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