User case AUCTIONHOUSE
SALES VALUE AT PUBLIC AUCTIONS OF ART AND ANTIQUES WORLDWIDE SALES
26.3 BILLION USD.
While the history of auctions goes back as far as the ancient Greeks, the foundation of the modern auction market lies in businesses that were established in England during the 18th century. Since then, the practice of offering goods up for bid gained popularity, but perhaps few could have predicted that the global sales at public auctions of art and antiques would eventually generate billions. In 2021, the sales value of this market amounted to 26.3 billion U.S. dollars. Although auction houses do not exclusively focus on art, they represent a pillar of the global art market, as public art and antiques auctions made up over a third of total art sales worldwide in 2021.
Problem of traditional auctions : 15-20% of the auctioned goods are left unpaid at small/medium auction houses, against 10-15% at medium/large auction houses, resulting in loss of revenue, high accounting/legal cost and unsatisfied customers.
Younger generations are increasingly starting businesses and making their fortunes online, and they have started to recognize the Internet as an art-trading vehicle. They are making an economical, rather than an emotional investment, and so are more at ease with online buying. The global sales value of art and collectibles experienced a huge increase in 2021 over the previous years, peaking at 11.16 billion U.S. dollars. Meanwhile, NFT transactions in the collectibles segment generated nearly 8.6 billion U.S. dollars in 2021. The third quarter of 2022 saw $3.4 billion in digital asset sales, DappRadar said. The enormous growth of the online market is in fact driven by millions of new buyers who see art as an investment vehicle whose value will increase over time.
Problems digital art space: only digital goods, use of unreliable platforms with high fees and creator scams.
Solution: ATOEN is combining the best of both worlds while solving all problems at once.
How: By the implementation of our blockchain transaction technology to the traditional auction markets.
While the technology is instantly solving the problem of unpaid goods. It also fosters the traditional art market into a new, young, interconnected global clientele interested in art, who will be able to make purchases quickly and smoothly on the go.
Goal: start a collaboration to launch an auction front-end within a 3 month time span with a small/medium size auction-house open to upside opportunity.
We have seen how the art market has survived and evolved in times of profound change, strengthening and improving its structure. The creation of auctions backed by public blockchain technology is nothing more than the latest market movement towards efficiency and transparency. Today it is clear that what was considered for centuries a niche market accessible only to the elite, is opening up to globalization and adapting in the same way as any other business that aims to survive the radical changes in our increasingly interconnected society, and is slowly becoming an accessible, open market. Although this may have taken away a lot of the perceived magic from art dealing, it has made it possible for millions of people around the globe to appreciate, enjoy and own works of art that otherwise would have been beyond their reach. This natural modern migration to online platforms is taking place and we help to adapt as easy and early as possible.
Sources: Art Basel; UBS; Arts Economics; Artory
Survey by: Arts Economics; Artory
Survey name:The Art Market 2022
Published by:Art Basel; UBS
Source link: The Art Market 2022, page 144
Release date March 20
Statistics: www.statista.com the global art market.