Infrastructure project for business process/asset optimization in the Art market

Presentation

Why are we doing this?To make the global Art Market accessible and understandable for tens of millions of new participants from around the World is a worthy goal. Firstly, it will increase the market’s turnover several times, which means its marginality will increase.Secondly, the more we do Art, the less we fight.

Average annual return works out at +4.6% on an average holding of 13 years.

Contemporary Art prices posted an increase of +40% But, the number of lots sold between $10 - $100 M dropped by 41%

According to a 2018 article posted by insurance company AXA, young collectors make up approximately 15 to 25% of all art collectors.

Many collectors get started by purchasing less expensive pieces, often valued at $5000 or under.

This is a problem that needs to be resolved.Yes, the global Art market is growing and showing reasonable growth rates. From 2008 to 2018, the increase was 9%. The turnover in 2018 reached $ 67.4 billion, which is 6% more than in the previous year. And if you add to this the turnover of the "gray zone," then you can safely multiply the final numbers by three. But, we are confident that, given the request for new types of exchange-traded assets, it can grow much faster.

The slow growth of the Art market

Art assets possess the necessary qualities to be objects of investment:

Demand. Everything that is already built into the cultural code does not lose value.

Uniqueness. Each art object exists in only one original.

Originality. The works of the departed masters are no longer "released".

Business model

COART Platform is an infrastructure project consisting of a technology platform using blockchain and a specialized business process, consistent with the requirements of legal and financial regulators.Together, this will allow for significant optimization of business processes and asset management for all participants of the Art Market - the most conservative and non-transparent of all major markets at the moment.

The ecosystem of the Platform consists of two main components that we launch sequentially:

- COART Marketplace & online Auction - 4Q 2019- COART Broker - 2-3Q 2020Both components are examples of B2C business, while the COART Platform itself has a B2B offer. Thus, both the Marketplace and Broker are a demonstration of the Platform’s capabilities that entrepreneurs around the world can use to open their business projects in their countries and connect to the COART blockchain infrastructure.Profitability is ensured by using the Platform as the basis for launching projects by third parties.

The target audienceOur primary audience is millennials and generations following them. First of all, we have in mind two groups:

1) millions of beginner and little-known artists for whom access to the market is difficult due to the high costs and conditions of such traditional channels as galleries.

2) millions of small and medium-sized investors around the world who are interested in investing in the art assets of the top segment, but who do not have sufficient personal funds for this.

transactions as in traditional,and in cryptocurrencies

securitization and tokenization of physical assets for release their digital shares or bonds

free trading of these tools on Nasdaq and other leading exchanges in the world

manage your assets with easy-to-use DApp

By simplifying access to the market for artists and creating a convenient and legally correct co-investment algorithm for a growing number of retail investors, we will increase the total turnover of the Art market by at least five times in the first ten years of the project

. Увеличив аудиторию в обе стороны мы увеличим объем рынка не менее, чем в пять раз за первые 10 лет.

Most Art Market leaders are our potential users:Online fairs and auctions such as Saatchi Art, Artsy, Paddle8:Without exception, everyone is interested in automatically providing provenance for the artworks they sell. Instead of spending time and money creating their blockchain systems, they can use our distributed provenance ledger at no extra cost to themselves.

Auction houses, including Sotheby's, Christie’s, and Phillips:By allowing millions of retail investors to bid for top lots, auction market leaders will be able to increase their turnover and profits significantly. It will be enough for them to use the mechanism built into the COART Platform, which includes instant settlement and atomic swop, developed by us in cooperation with Nasdaq Baltic, as with the process owner and financial service provider.

Blockchain projects that have not yet created a complete infrastructure:Companies Masterworks, Maecenas, ArtChain often already have their mechanisms for issuing tokenized “shares” of art assets but have not yet created a secondary market for such assets, without which they cannot be used for trading. We are building the secondary market for art-asset-tokens first of all. Other projects will be free to use this opportunity.

Thus, COART Platform, as an infrastructure project, not only does not compete with Art market leaders but, on the contrary, provides them with a new arsenal of opportunities and ensures that millions of new customers come to the market, which can benefit everyone.