Jianing Wang

Date of Award

2024

Document Type

MA Project - Open Access

Project Type

MA Project - Business Plan

Degree Name

Master of Arts (MA)

Department

Art Business

First Advisor

Noah Kupferman

Second Advisor

Brendan Burns

Abstract

Art is still used as a financial hedge in times of economic uncertainty. According to Artnet’s Financial Art Index, “The art market outperformed the S&P 500 from January 2022 to July 2023, with art returns rising by 4.2% in nominal terms, while the S&P 500 lost 6.6% during the same period.” 1 Although we are currently in a period of uncertainty about the future global economic outlook, the impact of fluctuations in art prices is relatively low. ArtVest will establish against post-pandemic New York in 2024, seamlessly bridging the realms of art and investment. ArtVest recognizes the potential in the art fractional ownership space, which remains a relatively untapped market segment. Since 2019, blockchain technology was rapid growth which led to the emergence of numerous Web3 startup business. The promotion of this technology have attract widespread attention, particularly capturing the enthusiasm of the younger people. The revolutionary impact of NFT technology has spawned many technology companies, using novel concepts as selling points, attracting substantial investment. However, the huge surge in expectations has also led to the proliferation of bubbles and Ponzi schemes, prompting people to reassess the long-term sustainability of the NFT market. In 2023, following the end of the pandemic, NFT markets experienced a burst of the bubble. People are beginning to question whether investing in NFTs is a wise choice? There is no doubt that blockchain technology makes smart contracts very stable, but the future application of NFT technology is still in the experimental stage. It is based 1(Torcello and Petterson) on this confidence in the stability of NFT technology that ArtVest has decided to apply this technology to the art investment field. ArtVest utilizes NFT technology to achieve partial ownership of art pieces, dividing the artworks into quantized NFTs of equal value and using the non-fungible nature of smart contract technology to digitize the physical value. This move brings new possibilities to the field of art investment and provides investors with more diversified choices. With ArtVest established, art investment is no longer limited to a few wealthy individuals, and ordinary investors can also share in the dividends of art investment. ArtVest plans to raise US$60 million by June 2024. Starting purchase artworks by September 2024, and launch official online platform by October. At the same time, ArtVest will establish our office in New York City and complete an art exhibition hall by March 2025.

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