On March 29, non-fungible token startup Freeport announced that it had approved a U.S. Securities and Exchange Commission Regulation A review to launch its blockchain platform for the collective ownership of a four-piece collection of tokens. Andy Warhol prints. Each piece consists of 10,000 shares, with a minimum purchase of 10 per person, allowing a maximum of 1,000 people to own a Warhol artwork.
The underlying pieces are first-class prints of Warhol's iconic works, including Marilyn (1967), Double Mickey (1981), Mick Jagger (1975)and Rebel Without a Cause (James Dean) (1985). Current Andy Warhol paintings on the market can cost between $6 and $195,040,000 each, according to MutualArt.
As Freeport said, the SEC clearance allows retail investors to gain fractional ownership of the fine art market, which is typically exclusive to high net worth individuals due to prices. "Customers can showcase their pieces in a high-resolution personal gallery, select frames, and view other community members' galleries with rich social interactions including comments, likes, and more," the Freeport team wrote. Colin Johnson, CEO and co-founder of Freeport, commented:
"As more and more value moves up the chain, fractional art is increasingly sought after by a younger, but less financially flexible class of investors."
Anyone offering securities in the US must register with the SEC or apply for an exemption. The Regulation A waiver allows companies, primarily startups, to raise $20 million in 12 months in a Tier 1 offer or $75 million in 12 months in the more stringent Tier 2 offer. On April 18, Gary Gensler, Chairman of the SEC, will testify before the House Financial Services Committee on the regulation of crypto assets.
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