Category Archives: auction

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Hilton to Auction Off $44M Mansion For Cryptocurrency

Hotel mogul Richard Hilton, chairman of Hilton & Hyland and the father of American celebrity Paris Hilton, is auctioning the Palazzetto Roman mansion on 28 June 2018 with a reserve price of EUR 38 million (USD 44 million) on the blockchain-based real-estate website Propy. This will be the largest blockchain-based auction in history, and also potentially the largest cryptocurrency real estate purchase in history.

The Palazzetto is colossal at 17,363 square feet, including 11 bedrooms and 15 bathrooms. It has been called the most iconic mansion in all of Rome. This would definitely be the largest piece of real-estate purchased with cryptocurrency in history, if indeed purchased with cryptocurrency. Propy allows bids with US dollar as well, so it could possibly be sold for fiat in the end. Regardless, it will be historic since it is the largest blockchain-based auction in history. 

If someone were to buy the Palazzetto with cryptocurrency it would cost over BTC 6,500 at the expected market rate, not bad considering that the first purchase with Bitcoin was a couple of large pizzas for BTC 10,000. So for less than the cost of the Bitcoin pizza, someone can buy an iconic mansion in Rome, which is evidence of how much Bitcoin’s value has skyrocketed since 2010. Of course, this is an auction so the exact price of sale is yet to be determined.

The most expensive piece of real-estate sold for cryptocurrency before this was a 7-bedroom Miami mansion that was purchased for BTC 455, worth USD 6 million at the time. Twenty homes have been sold for cryptocurrency in the past year alone and more are expected this year, perhaps the beginning of a trend where cryptocurrency becomes an accepted mechanism for real estate transactions.

Market volatility is one thing hindering Bitcoin and cryptocurrency from being used for real-estate deals. The price of Bitcoin often changes 5-10% in a single day which could cause quite a bit of stress for buyers and sellers. Platforms like BitPay which instantly convert cryptocurrency to fiat can help minimize risk, but these sort of platforms come with heavy fees for large deals like real-estate. Regardless, the Palazzetto auction proves that using cryptocurrency for large real estate transactions is feasible.

Richard Hilton said, “The auction shows real estate’s growing trust in blockchain and provides crypto investors an opportunity to diversify and solidify their portfolio with a trophy asset.”

 

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‘World’s First’ Crypto Art Auction to Sell Andy Warhol Painting via Blockchain

Blockchain platform Maecenas announced Wednesday its plans to hold the “world’s first cryptocurrency art auction”, featuring a piece by famed artist Andy Warhol, as reported by Cointelegraph.

Crypto-friendly art auction

The auction will be held at UK fine art gallery Dadiani Syndicate on 20 June, with a 49% ownership stake of Andy Warhol’s 14 Small Electric Chairs up for sale. The piece is part of Warhol’s 1980 Reversal series, currently valued at USD 5.6 million, with a reserve price set for the part-ownership at USD 4 million.

Digital certificates will be issued confirming part-ownership upon purchase via the Maecenas blockchain platform. The acquisition can be made with either Maecenas’s ART token, Bitcoin, or Ether. To make the purchase of Warhol’s piece, buyers must be fully KYC and AML compliant.

Maecenas offers immutable purchase history and ownership information, connecting investors and art dealers on the platform while running a smart contract on the Ethereum blockchain for this particular piece.

Cryptocurrency is becoming an increasingly popular payment method for art investors. In 2017, the Dadiani gallery began accepting cryptocurrency payment methods, as did the luxury market alternative Dadiani Syndicate which accepts Bitcoin, Ether and Litecoin.

Blockchain solutions

Blockchain can offer a practical solution to issues regarding copyright, ownership, and authenticity, problems faced in the art industry but certainly not restricted to it.

Sam Radocchia, co-founder of art blockchain authentification platform Chronicled described the main ambitions of the company as ”improving provenance and reducing art forgery“.

Registering art on the blockchain creates a cryptographic link between a physical work and the blockchain, meaning once it is registered, its identity can be automatically authenticated for potential buyers. This eliminates any forgeries or shady dealings from taking place.

There is also the added benefit of being able to monitor pieces of art while they are traveling. Blockchain has the potential to let buyers track the entire journey of their purchase on a mobile app, ensuring what they receive is true to what they paid for.

 

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