Vincent Van Gogh 2.0

Vincent van Gogh was a prolific painter in the late 19th century who had a deep passion for his art, but unfortunately, he struggled with financial troubles for much of his life. One day, he had an idea to seek the support of his patrons to help him fund his upcoming paintings that were works […]

7 min read

Vincent Van Gogh 2.0
Darien Tan

Darien Tan

Vincent van Gogh was a prolific painter in the late 19th century who had a deep passion for his art, but unfortunately, he struggled with financial troubles for much of his life. One day, he had an idea to seek the support of his patrons to help him fund his upcoming paintings that were works in progress and due for auction in the coming Summer.

Vincent’s patrons, who were wealthy individuals interested in supporting the arts, were excited to invest in his vision. They each put in at least 100 francs, which represented their investment in Vincent’s upcoming paintings. The five paintings were all in progress, and Vincent presented his works to interested patrons. Each painting was pre-sold to patrons for 1,000 francs, and before putting in their investment, Vincent held ‘Ask-Vincent-Anything’ or ‘AVA’ sessions as he called them where the patrons had the opportunity to ask Vincent anything about him and his inspiration for each painting.

Investments were made based on a first-come, first-served basis, and once 1,000 francs were raised for a painting, no further investments were accepted. At the end of the process, each painting was co-owned ‘fractionally’ by a number of patrons. With the 5,000 francs successfully raised, Vincent could concentrate on putting his creativity and inspiration to canvas without being distracted by financial concerns.

In six months at the turn of Summer, Vincent revealed his five completed paintings at the La Maison de l’Enchère Royale. Each painting attracted different bids and interest, fetching prices of between 10,000 to 50,000 francs each. The auction house deducted its fees, and Vincent received a performance fee for his work and each patron was accorded their share of the proceeds from the sale of the paintings based on their proportioned interest in each painting. The patrons had a direct impact on the production of the artworks and shared in the financial success of the artist.

Vincent van Gogh’s innovative funding model for the arts proved to be a success. It provided patrons with an opportunity to invest in the creation of new artworks and share in the financial success of the artist. This funding model was a step towards revolutionizing a new funding model for the arts.

The above story is obviously fictional because Vincent van Gogh’s paintings only became extremely valuable in the late 20th century well after his death in 1890. Also, perhaps to some it is too vulgar to talk about art in such a commercial way. However if we swapped out the struggling artist for an aspiring venture capitalist, what we have may be a step towards revolutionizing venture capital.

The 3 Tokenization Models in Market

The STO market was born in 2018. Since then, there has been significant growth and progress around the world. However, until recently there has only been 2 models available for an investment firm that would like to issue an STO.

The first model is called token issuance and it is a pure service offering with the value proposition being that an asset owner can use the token issuance company, a technology only company, to issue the STO on behalf of the owner. This was the first model in the industry and provided some value, however, as STOs are securities, most investment firms are looking for additional licensed services needed in the issuance and trading of a security such as broker-dealers, exchanges or custodians (note these all require financial licenses and are regulated activities for STOs). Token issuance alone is not the end game.

The second model we call the  security token exchange model, and it brings the technology and necessary licenses to facilitate the life cycle management of issuing and trading an STO. Think of this model as a “tokenized version” of the traditional stock exchange, where there are lots of services and fees, and asset owners must send their assets and their investors to the exchange. Many STO exchanges are also built on private blockchains and are disconnected from the entire ecosystem of digital currencies, cryptocurrencies and other innovations from the Decentralized Finance industry, which all use public blockchains. This model adds value but again is not the end game.

The third model, and in our opinion, the far superior model, is “Licensed” Tokenization SaaS (Software as a Service). You reap the benefits of both of the above models “token issuance” and “security token exchange”, without the disadvantages. Additionally you receive the added features of customization and control over your assets and investors, this is key. You can utilize broker-dealer, OTC and exchange services without needing licenses of your own. It is the best of both worlds and the end game from a market solution perspective.

Tokenize your assets on top of our infrastructure

Our Tokenization SaaS platform is a software-as-a-service solution that enables the issuance, trading, and custody of security tokens for private market assets. We have been granted a Capital Markets Services and Recognized Market Operator license by the Monetary Authority of Singapore to deal in and operate an organised market for securities, respectively. Our service offers a one-stop solution for all your security token needs, including seamless banking integration, thorough user verification with our KYC module, flexible OTC trading options, primary issuance services, cutting-edge blockchain technology, and smart contract deployment.

Benefits of Using our Tokenization SaaS Platform:

All-inclusive one-stop-shop solution: Tokenization SaaS platforms offer everything an investment firm needs to get started with tokenization, including issuance, trading, and custody solutions.

Latest blockchain technologies: Tokenization SaaS platforms use the latest blockchain technologies to ensure the security and integrity of tokenized assets and a choice of blockchains as well.

Fast integration time: Tokenization SaaS platforms are designed to be easy to integrate and onboard, allowing investment firms to get started immediately.

Low cost: Tokenization SaaS platforms offer the most cost-effective solution. 

If you’re interested to learn more about how you can build your business on top of our infrastructure and what we can offer for your company as your tokenization partner, then contact us here. Thank you.

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