HELLO AND WELCOME
Welcome to the Crypto Certs, a dynamic funding model created by the team at Ed Fornieles Studios. The aim of the program is to rethink the financial mechanisms that sustain an artist's studio and to reshape them in innovative ways.
The Crypto Certs have been created as a means to raise funds for the development and production of new artwork. As an accessible model with a transparent structure, that allows for open participation in the studio ecosystem, rewarding investment in production with a share of future profits.
While the traditional financial model for artwork production relies on a small, centralized network of high-risk investors, the Crypto Certs diffuse risk across a wider, de-centralized network of support. In doing so the pressure is removed for artists and galleries to raise funds for production costs and allows them to develop artwork independently of market pressures. This leads to greater experimentation on the part of the artist and redirects the flow of capital towards the production, development and growth of future artworks.
The Crypto Certs combine financial tools of the art world with the creativity of the financial sector.
HOW IT WORKS
The Crypto Certs employ ethereum blockchain technology to store and distribute value. Each certificate contains a key embedded under a scratch panel, which entitles the holder to a percentage of an ethereum fund generated through the sale of certificates and other artworks. As more sales occur, the ethereum fund grows. To gain access to the key and cash out on an investment, the holder must scratch the panel and damage the certificate.
Once used, keys becomes defunct. Meaning that if you decide to withdraw your funds, timing is important, as their value depends on how much the ethereum currency is worth and how much is contained within the certificate fund at that given moment.
A combination of an artist print and a financial product, the certificate contains twofold value: that of an art object and that of a crypto fund. The holder must decide between conserving the value of the certificate as an artwork and damaging it to access the funds it contains.
The structure of the Certificate Program has been designed to encourage gradual growth and stability. As each new generation is produced, the certificates increase in size and market value. These features reward early supporters with a low buy-in point for a fixed percentage of the studio fund and allow them to benefit from the higher contributions of later investors. At the same time, new investors are attracted by the value of more substantial art objects.
The structure of the Crypto Certs has been designed to encourage gradual growth and stability. As each new generation is produced, the sale value goes up at fixed points. This allows early supporters to enjoy a low price point for a fixed percentage of the studio fund, while benefiting from the higher contributions of later investors. The size and scale of certificates grow with each generation.
This feature has been included to reduce the risk for new supporters, balancing the certificate’s higher cost against its value as an art object. In this way, new investors are attracted, while the stake for old investors increases against their smaller contribution.
There are two types of certificates in the program, the studio and the project certificate, each with their own unique features and benefits.
The Studio Certs is the bread and butter of the studio and offers investors a gradual and sustainable return on their investment. This certificate marks support of the studio as a whole, and investment into its future.
The Project Cert’s are designed to fund specific projects as opposed to the day to day running of the studio. They are larger in size and limited to smaller runs than the studio certificate. A Project Cert entitles the holder to a percentage of sales generated from a specific project.
We invite you to take part in our studio, to share in our growth and to be part of an experimental platform that proposes an alternative, transparent and rewarding means of producing art.
The Crypto Certs are available from our store as well as participating galleries, dealers and institutions.
The capital value of units in the fund can fluctuate and the price of units can go down as well as up and is not guaranteed. This is a speculative art product and the prices may fluctuate widely.