TRANSFORMING REAL-WORLD ASSET: TOKENIZATION OF PAINTINGS AND ARTWORK
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Abstract
This study aims to analyze the impact of tokenization on the liquidity of paintings and artworks, as well as explore the potential for museums and private collectors to adopt this concept as a fundraising and art collection tool. The research employs a mixed-methods approach, combining quantitative and qualitative analysis. Quantitative data were obtained from variables relevant to the art market and investment, including historical art sales data, expected growth rates, growth rate volatility, and tokenization rates. Simultaneously, qualitative data were gathered through focus group discussions with museum administrators, art collectors, art appraisers, and online art museum platform practitioners to reflect their perspectives on the opportunities and limitations of implementing this concept. The results show that quantitative analysis using Monte Carlo simulation demonstrates positive financial outcomes from art tokenization, reflecting the potential to enhance investment and fundraising opportunities for art collections. Qualitative analysis, however, reveals that while this approach increases liquidity and accessibility to the art market, concerns remain regarding legal complexities and ethical issues. And the level of institutional readiness to apply such concepts. Therefore, developing appropriate regulatory guidelines, preparing digital infrastructure, and fostering shared understanding among relevant agencies will be key factors in supporting the efficient and sustainable application of art asset tokenization in the future
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