The Problem and Opportunity
Collectibles - such as art, precious stones, and jewelry - are not within the purview of the U.S. securities laws. Such assets trade on closed, unregulated, auction-based markets and cater to the ultra-wealthy.
Incongruity arises from the fact that cryptocurrencies can and do purchase collectibles, directly through these unregulated markets, but the crypto world is prohibited from performing such transactions via its dynamic markets unless the collectible has been designated a security token and traded on a regulated market.
As detailed and discussed in the Executive Summary section above, we believe the realworld collectible-based NFT innovation will not only remedy this but enhance the current closed, opaque, auction-based markets for both buyers and asset holders.
For now, FIX00 is issuing a utility token that has no ownership or voting rights and is not meant to be exchanged for a different token later. The token is designed solely to grant digital access rights to our forthcoming privileged platform and services, which will unlock the value of such collectibles, encompassing assets with an assessed value of US$16bn, and through innovation give the people the exposure and rights currently only available to the wealthy.
NFTs differ from cryptocurrency in that they’re non-fungible, meaning they can’t be exchanged for an identical item. Cash, for example, is a fungible asset: Each dollar may be unique, but the particular dollar you have doesn’t matter. If you swap a $10 bill for two fivedollar ones, you still have $10. Trade your $10 for an autographed baseball card, however, and you then have a non-fungible item: it’s unique, and while it may have a monetary value, it isn’t itself a trade commodity.
Our forthcoming exclusive platform and services on a blockchain-based infrastructure will enable us to offer regulatory compliant offerings of our extensive and diverse luxury collectibles to a broader base of people via fractionalisation and affordable pricing.
Our forthcoming exclusive platform and services on a blockchain-based infrastructure will enable us to offer regulatory-compliant offerings of our extensive and diverse luxury collectibles to a broader base of people via fractionalisation and affordable pricing.
A boon to buyers, sellers, and indeed lenders, bringing them closer together and offering a realistic manner with which to assess demand and value at any given time.
Importantly this will be achieved through a transparent and reliable B2C and C2C platform, offering both depth, transparency, and disintermediation.
Our long-term goals and aims do not stop in our niche area of expertise, as we fervently believe our forthcoming patented and legally compliant blockchain infrastructure will have positive implications for the "cryptoverse" in general.
Cryptocurrencies have proven their worth as speculative assets, which remains their most prominent attribute. Despite gaining more utility and acceptance, they continue to display extreme volatility and have largely failed to meet expectations as non-correlated assets (a hedge).
For example, the annualised volatility of Bitcoin is around 73%, compared to 52%, 21%, and 5% for crude oil, S&P 500, and US Treasuries, respectively.
The development of stablecoins and tokens has emerged as a market-driven response to this volatility, involving the blending and integration of real and digital assets. These cryptohybrids have produced enhancements, applying indirect constructs which offer stability and liquidity via affiliation with a real-world asset.
This is a partial solution; risks and inefficiency remain, and in some segments of the market may even be exacerbated. For change to be substantive, the appropriate structure and full use of the technology available must be employed.
Disruption of the status quo is required, which is the catalyst for unlocking and realizing tangible benefits for users together with new entrants in the virtual as well as real-world markets. In the rapidly advancing world of cryptocurrency and digital assets, the challenge, along with the promise, has been to construct better, more secure markets for the vendor and purchaser, investor, and asset holder.
Such an opportunity exists in the gem market, and tokenization allows at the very least improvement, if not a fundamental change to the market, for the benefit of all involved and enhancement of the crypto-verse.