Freeport, a fractional ownership model powered by NFTs, launches – ARTnews.com

Despite the depressed crypto market, a new startup has just launched, with big plans to offer shared ownership of blue-chip art using NFT technology.

Amid old-school cocktails, Korean barbecue and heavy drapes, Freeport kicked things off at Zero Bondone, a New York club, on Wednesday. An Andy Warhol Marilyn print in a warm pink hue was propped up on an easel. This piece, along with three other Warhol prints, was offered to the first round of Freeport investors, who could purchase a fraction of these iconic pieces for as little as $25 dollars per share, with a minimum purchase of 10 shares (Marilyn going for $55 per share).

It’s a somewhat familiar concept. Founded in 2017, Masterworks was among the first to pioneer the idea of ​​selling “shares” of blue-chip artwork, although the publicly stated minimum investment was $15,000, a much higher buy-in. Then, in December 2021, ex-Christie’s rainmaker Philip Gouzer founded Particle which offers shares of artwork facilitated by blockchain technology, buyers essentially got an NFT representing their share and allowed them to sell on secondary NFT marketplaces like OpenSea or Rarible. Both companies appear to be struggling. An ART news investigations uncovered business practices by Masterworks that some have suggested violate government regulations, and meanwhile, Particles’ NFTs are going for much less than their original price, with plans for further acquisitions and a decentralized museum in limbo.

Still, Freeport investors and entrepreneurs are feeling optimistic. In a way, Freeport is a mix of Masterworks are Particle. Like Masterworks, Freeport has Securities and Exchange Commission approval to sell Regulation A securities, a boon as regulators begin to crack down on trading new assets. But like Particle, Freeport is blockchain-enabled, meaning they can tap into a collecting community that has proven open to new forms of fundraising. It can be the best of both worlds.

“We did the SEC thing, we became legit. We’re not as exposed. We’re not like FTX coins. We’re backed by something very solid that has value,” Colin Johnson, co-founder and CEO of Freeport. “There are a lot people who know art, but they don’t really know any artists. If they’re going to know anyone, it’s Andy.”

Fortunately, Johnson and his team knew just where to get them. An old family friend of Johnson’s, Michael Haber (“He bought me my first dog when I was five!” Johnson says) is a devoted collector of Warhol’s work and encouraged Johnson’s family to buy his work, from his grandmother to his brother. In fact, it was Haber who first encouraged Johnson to explore the possibilities of Web3 when Johnson was working at Apple in affiliate marketing.

Deciding to move forward with Freeport, Haber introduced Johnson to Jane Holzer, aka Baby Jane Holzer of Factory fame, whose eternal status as the New York “It” Girl was enshrined in a recent issue of New York Blade. Holzer has his own cache of Warhol’s work and agreed, along with Haber, to sell Johnson some work and offer some much-needed advice. In the end, Freeport captured four Warhol prints, Double Mickey (1981), Marilyn (1967), Rebellion without cause (1985) and Mick Jagger (1967) for just over 1.7 million dollars.

Holzer told ART news that she liked the idea from the beginning, because “I love investing in things and I thought it was a bit bizarre. Holzer sat next to Johnson, her false eyelashes fluttering and her blonde hair pulled up into her signature voluminous updo. Johnson credits Holzer as his wise advisor, helping him navigate the social aspects of running an art-related business. So, what does she think Warhol would think of this emerging trend in collecting, art marketing genius that he was?

“You know what? I was just having fun. “Oh, my hair, my brand new dress, I’m going out and having fun with Keith [Haring]Jean-Michel [Basquiat].’ And then it turned out, “Gee, Andy was really smart.” I just didn’t get it, she said.