How did you get in touch with Untitled Workers Club?
I attended the Money Conference in Dublin, and so did some employees of Untitled Workers Club. During the boarding procedure for our return flight, we started talking to each other.
Did you talk about security tokens right away?
Yes. Am I a freak now (laughs)? At Untitled Workers Club, they immediately felt that security tokens might be a solution for museums.
Are you interested in art?
My expertise lies in technology, but the more I work with Untitled Workers Club, the more I know about art. Gwenn, Peter and I worked very closely. Together, we are the triggers of the project. But we would not have been able to achieve it without the many project partners.
Can you explain what a security token offering (STO) is?
Actually, it’s a new financing method based on blockchain technology. A Security Token Offering is best described as a process in which fractional ownership - of assets, property or debt - is offered in exchange for money. You can compare it with crowdfunding, but much more advanced.
Rubey is a crowdfunding technique 2.0. which makes the investment in art inclusive.
A service for museums and a concept for the people by the people.
I'm afraid I need a little more explanation.
Concretely applied to the project that we are now realizing, it means that we have developed a financing method for purchasing masterpieces. The money is brought together by a large group of people. Each participant owns, so to speak, a pixel or a fraction of the masterpiece (fractional ownership). This group is represented in a security token, which grants the buyers specific rights in relation to the masterpiece.
Why not just do a crowdfunding?
Security Token Offering complies with all EU financial laws and regulations regarding shares and securities. You're protected as much as a traditional equity investor. In addition, the tokens are programmable. This means that the fractional ownership features in the digital token are programmed, enabling the process of issuing, managing and transferring the digital tokens to be fully automated. So the token holders can – if they need the pennies of their investment back – just sell their token. So you can say it's a crowdfunding technique 2.0. With our project we also want to make the investment in art inclusive. So you won't find financial entry thresholds in our project. You can already participate with about 50 euros.
Another advantage compared to crowdfunding is that there is no limit on the amount you can raise with a STO. For example, through crowdfunding, we will never be able to finance a €10 million work of art, because the local regulator does not allow such an amount to be raised through traditional crowdfunding. STO doesn't have such limitations.
Where will the artwork be seen?
That's the beauty of the story. We have realized this project as alternative financing for the purchase of paintings for museums. The masterpiece will not be included in a private collection, but it will have a prominent place in a museum. We sincerely hope that the museum also makes it possible for the owners to come and admire their work. It is therefore a project that runs according to the principle of "by the people, for the people".