On March 29, non-fungible token (NFT) startup Freeport announced it had passed the SEC’s Regulation A review to launch its blockchain platform for Andy Warhol prints Collective ownership of the four-piece collection. Each work contains 10,000 shares, with a minimum purchase of 10 shares per person, and a maximum of 1,000 people are allowed to own one Warhol artwork.
The works below are prints of iconic blue-chip Warhol works, including "Marilyn" (1967), "Double Mickey" (1981), "Mick Jagger" (1975) and "Rebel Without a Cause" (James Dean)" (1985). “According to MutualArt, Andy Warhol paintings currently sell for between $6 and $195,040,000 each. As Freeport noted, the SEC license allows retail investors to take fractional ownership of the fine art market, which is typically exclusive to high-net-worth individuals due to pricing. "Clients can display their work in a high-resolution personal gallery, choose a frame, and view galleries of other community members through rich social interactions (including comments, likes, etc.)," the Freeport team wrote. Colin Johnson, CEO and co-founder of Freeport, commented:
“As more and more value is transferred on-chain, fragmented art is increasingly sought after by a younger but less financially flexible investor class.” Anyone offering securities in the United States must register with the SEC or seek an exemption. The Regulation A exemption allows companies mostly startups to raise $20 million in a primary offering or $75 million in a stricter secondary offering within 12 months. On April 18, SEC Chairman Gary Gensler will testify before the House Financial Services Committee on crypto asset regulation.
