FUZAMEI: The Blockchain Can Make Art a Better Investment

From Behance

In recent years, the talk about “art financialization”is getting louder. As prices soar to new levels and digital technology opens new markets, this demand becomes much urgent.

Issues around price manipulation are major concerns on the art market — what are FUZAMEI’s solutions to this problem?

Although the regulation and rules exist for a long while in the art market, it is still mysterious to the public. The privileged access and poor transparency over the art investment process are factors leading to the inflow of art trade.

Deloitte Art & Finance 2018 Report

The box inner conduction makes the art work valuation difficult. A piece of art, even if it is a genuine product, its value is not assessed in a single way; instead, the value is influenced by several factors such as physical, artistic, market, academic, and cultural factors collectively. However, public has limited access to the valuation process and standards, thus, in the current art market, most of art piece is overvalued. The poor transparency in traditional artwork market will also be the paradise for money laundering.

Additionally, collectors are unwilling to disclose and most of artworks are sold through intermediaries such as auction houses, which finally contributes to the high medium service fee. Indeed, both professionals and collectors only deal with counterparties at the same social status. Small connoisseurs are only accessible to sell to small collectors while big prefers to sell artworks to big collectors. The transactions are mutually exclusive.

FUZAMEI, as a blockchain technology service provider, aims to take advantage of smart contracts to provide a fair and transparent price discovery mechanism, by which investors can be empowered with greater control and right-to-know over the investment process.

All the artworks information will be recorded in the blockchain, including their provenance record, condition report, authenticity certificate, past exhibitions, literature references, and insurance certificate; and these are accessible to all the users easily.

FUZAMEI aims to build a global art blockchain market, but why was blockchain chosen?

65 percent of wealth managers, 63 percent of collectors, and 69 percent of art professionals see issues around undisclosed conflicts of interest as a problematic topic in the art marekt. Increasing focus must be placed on due diligence in art transactions. (Data from Deloitte Art & Finance 2018 Report).

From Behance

Blockchain is often called the “internet of trust” because blockchain could help parties get rid of the trusted intermediary to execute and settle financial transaction. Additionally, blockchain is characterized by decentralization, immutability and transparency, which means once recorded in the blockchain, the information cannot be amended. Any data and transaction will be broadcast to all users, therefore, greatly reduces the opportunity for bad actors to manipulate prices. Indeed, the feature of tamper-proof makes the blockchain an ideal secure repository for certificates, users can keep track of provenance records easily. Last but not least, the value of art mostly depends on the public consensus. The overall network broadcasting system helps users to know which artwork is more attractive to the public.

What is FUZAMEI’s advantage ?

Technology Support: At its very core, FUZAMEI is a blockchain technology service provider. We insist on blockchain research and development for 5 years with over 70 related patents accumulatively. The total number of blockchain patent application ranks at top 10 worldwide.

Active Ecology: FUZAMEI does not only talking about blockchain theoretically. We develops various on-going projects in our public chain ecosystem. Until now, we have cooperated with banks, automotive industries and electronic giants. The lifeblood of a ecology enhances liquidity, and therefore that is one of our top priorities. This will ensure that our marketplace is the right size and has enough players and assets when we start: two key aspects that will increase our chances of success.

As we secure more artworks and register more investors, we will continue to expand to new markets and to establish strategic partnerships with existing key players.

From Behance

The roadmap

FUZAMEI aims to build a corporate-level SaaS platform and plans to integrate art industry into FUZAMEI ecosystem. In the future, besides of the provenance of artwork, we still want to enrich the varieties of artwork projects in our public chain. We aim to integrate other services (such as valuation, insurance, shipping as well as buying and selling) into our art blockchain industry. Also, we plan to establish a blockchain art creation platform, in which every artwork submission will be rewarded by tokens. In this way, we will help artists, enthusiasts and investors to establish deep links with each other to build a good digital art community.

The world-leading blockchain solution company. Twitter: @FuzameiLtd