Why Is It Worth It To Tokenize Luxury Goods

Photo by Lum3n from Pexels
2 years ago

Tokenization is a form of digitization based on blockchain technology. It has already covered such areas as real estates and private businesses, giving a great opportunity to trade assets in the World Wide Web. Nowadays, it turns out that investing in luxury goods can bring satisfying profits even to those who were not primarily interested in fine arts or expensive cars. How tokenization can increase the value of luxury goods?

Not only gold

It’s becoming more and more apparent that almost each tokenization platform can offer luxury goods to the investors. It is well known that diversifying your portfolio is one of the most important aspects of investing. Ever since expensive products have entered the digital market, it created many alternatives to allocate the assets.

It is not only gold or precious stones that are more and more popular. Cars, designer clothes, artworks or luxury beverages are lately the objects of interest of many investors.

Cars get tokenized

Expensive and rare models of cars were reserved only for the richest, who could highlight their material status. Now thanks to tokenization platforms such products are available to everyone and are an extremely worthy investment alternative.

A few years back, some companies have released over 1 million tokens that were secured by a 1.1 million dollars Ferrari. Every shareholder could acquire assets for one dollar and become a co-owner of a supercar that is worth 4 million. Bear in mind that its value will only increase in forthcoming years. The project assumes the launch of 500 collector cars that are about to be tokenized in tokenization platforms. A shareholder doesn’t need to worry about maintenance or storage – the cars are safely stored in Stuttgart.

Artworks for shareholders

Valuable paintings are another luxury goods that were intended to be tokenized. One of the projects included a work by an American artist, entitled ’14 little electric chairs’. At first, its value oscillated around $1.7 million, but after it entered the tokenization platform, it rose to a staggering amount of $5.6 million. It turned out that the project has attracted hundreds of investors that were unconnected to the art world but willing to buy shares.

Don’t freeze your funds

Tokenization process has exerted a positive influence on the investment world, bringing a wide range of opportunities for those who weren’t given such options in non-digital reality. Let’s take wine – an example of a rear bottle, a true collectible. If you buy such an item and store it in the fridge, you somehow freeze your funds. Storing collectible wines demands special refrigerators that can be worth thousands of dollars.

Isn’t it better to invest tokens into a liquid that is safely stored somewhere on the other end of the world and slowly increases its value to be sold at a huge profit? That’s the beauty of tokenization. The process deprives you of restrictions and allows you to sell the assets at any time. Without the costs of transport, without any risk, without precious time spent on looking for the right buyer.

Don't Miss

What You Need to Know Before Selling Gold Online: Essential Information

What You Need to Know Before Selling Gold Online: Essential Information

In today’s digital age, selling gold online has become a convenient and
Photo by m. on Unsplash

How Do Alpha Capture Systems Help Traders?

There are a lot of different tools for people who like to