Introduction

Nova is excited to support the launch of $xART, the Fjord Sale of $ART, the core token of LiveArt—an innovative multi chain ecosystem at the intersection of real-world assets (RWAs) and ArtFi. Backed by a distinguished group of Tier-1 investors, including Binance, OKX, KuCoin, and Animoca Brands, LiveArt is helmed by an experienced team with a track record of successful IPOs on the NYSE and high-profile Web2 exits to Christie's and Sotheby's.

With over 13 million unique wallets, 1 million+ weekly active users, and $43 million in art and luxury sales, LiveArt has established itself as a leader in the digital and physical art markets.

This research delves into LiveArt’s proposed solutions, exploring how its products address key barriers to adoption and their potential impact on blockchain applications within the art sector.

Mission and Vision

LiveArt is transforming the art world by merging traditional markets with blockchain technology, making art more accessible and liquid than ever before. Historically, art has been a $2 trillion asset class reserved for the elite, with high costs and limited access deterring broader participation. LiveArt addresses these challenges by introducing tools and solutions that open new opportunities for collectors and investors.

At the core of LiveArt is a world-class art price database, offering real-time insights into over 10 million sales records from 350,000 artists. This resource empowers users to explore historical trends, analyze the market, and make informed decisions. Through the tokenization of real-world artworks, LiveArt makes it possible for individuals to invest in fractional shares of high-value pieces, reducing the barriers to entry and enhancing liquidity.

LiveArt also supports a thriving digital art ecosystem, collaborating with renowned artists to create blockchain-native projects, including NFTs and phygital art, such as Yue Minjun (a Top 10 Chinese Artist). These initiatives engage a growing global audience of art enthusiasts and Web3 users, fostering a seamless connection between traditional and digital art markets.

LiveArt Product Suite

The foundation of LiveArt is its Art Price Database, an extensive resource containing over 10 million sales records from 1986 onward, sourced from 25+ major auction houses worldwide. This database offers a comprehensive view of the art market, powered by advanced machine learning technology, enabling users to:

• Access real-time market data and pricing trends.

• Conduct deep historical research into artworks and artists.

• Leverage AI-driven comparables and pricing estimates to make informed decisions.

Beyond data, LiveArt provides a marketplace for high-value physical artworks, enabling verified users to buy and sell pieces valued at $100,000 or more. To facilitate these transactions, LiveArt offers centralized services such as: escrow management, transportation and logistic, secure storage. Their marketplace counted over $43 million in art and luxury sales.

Expanding its vision into the digital space, LiveArt embraces blockchain technology to create new opportunities for artists and collectors.

Through its Digital Art Studio and NFT Launchpad, LiveArt collaborates with internationally renowned artists to produce blockchain-native art projects. These initiatives often include phygital elements, where physical arts are bundled with digital NFTs. Represented as voucher NFTs, these artworks can be traded or redeemed on NFT marketplaces, providing a tangible connection to digital creations.

LiveArt is also redefining access to high-value artworks by introducing fractional ownership. This innovative approach tokenizes investment-grade art, enabling collectors to purchase shares of high-value pieces at a fraction of their cost.

The process begins with Initial Fraction Offerings (IFO), where artworks are divided into fractional shares and made available to investors. Once acquired, these shares can be traded on a secondary marketplace, providing liquidity and flexibility to participants. Additionally, buyout options allow investors to consolidate ownership under specific criteria, offering a path to full control of an asset.

Team

LiveArt is led by a skilled team of professionals from globally renowned institutions in art, technology, and business.

• Boris Pevzner, Co-Founder & CEO: A serial entrepreneur with five startups under his belt, including Collectrium (acquired by Christie’s) and Xfire (acquired by Viacom), Boris brings deep technical expertise as an MIT graduate and visionary leadership to LiveArt.

• Adam Chinn, Co-Founder & Chairman: A former COO of Sotheby’s and co-founder of Art Agency, Partners, Adam blends legal and financial acumen from his time at Wachtell, Lipton, Rosen & Katz and Centerview Partners with his vast art market expertise.

The LiveArt team, comprising 25 professionals from 19 countries, combines diverse skills in technology, art, and business to drive innovation and create seamless connections between traditional and digital art markets.

Backers and Financial Support

LiveArt conducted two funding rounds in 2022 - the first private round, raising $5.7m at $60m valuation, and a second private round, raising $1.9m at $100m valuation. The cap table, led by Binance Labs, showed tier-1 investors in the Web3 space such as OKX, Kucoin and Hashkey, along with other world-renowned firms like Samsung Ventures and Animoca.

In 2024, LiveArt landed on Magic Square and Paid Network with two sales, raising $75k and $215k respectively as Pre-TGE Launchpads.

What is $ART?

The $ART token offers exclusive access to limited edition NFTs, prestigious art events, and private art collections, providing users with the opportunity to engage with some of the most renowned artworks. Through fractional ownership, individuals can invest in these prized pieces, sharing ownership of high-value works. Contributors are rewarded for their involvement, while also gaining governance participation, allowing them to influence key decisions within the ecosystem. Additionally, users can benefit from access to art indices and explore art-backed loans, enhancing their investment options and overall engagement in the art market.

Tokenomics

• Platform-usage-based distribution (30% - 300,000,000 $ART tokens): Incentives for users to drive adoption (creators, sellers, buyers).

• Ecosystem Fund (10% - 100,000,000 $ART tokens): Acquisition of key creators (artists), key collectors, and sourcing partners (dealers, galleries, etc.).

• External Advisors / Warrants (2% - 20,000,000 $ART tokens): Support from industry leaders.

• DAO (3% - 30,000,000 $ART tokens): Incentives for an independent board of directors from the community to govern the system.

• Bug Hunting and Bounty Program (1% - 10,000,000 $ART tokens): Rewards for community contributions in tech and marketing.

• Airdrop (5% - 50,000,000 $ART tokens): Reward for Early Users.

• Tech Maintenance & Upgrade (3% - 30,000,000 $ART tokens): Funding for product development.

• Daily Operation & Marketing (3% - 30,000,000 $ART tokens): Coverage of operational and marketing expenses.

• Private Placement (Round 1) (10% - 100,000,000 $ART tokens): Fundraising from top Western and Asian funds and CEX venture arms.

• Private Placement (Round 2) (2% - 20,000,000 $ART tokens): Fundraising from strategic partners, community-based VCs, and selected launchpads.

• Private Placement (Pre-TGE Launchpads) (3% - 30,000,000 $ART tokens): Allocation for pre-TGE launchpad partnerships.

• Public Placement (IDO or IEO) (3% - 30,000,000 $ART tokens): Fundraising from the public.

• Team (15% - 150,000,000 $ART tokens): Incentives for the core team.

• Strategic Reserve (10% - 100,000,000 $ART tokens): Reserved for contingencies (e.g., hacking events, market crashes, future token sales, exchange listing fees, market maker liquidity pools).

Note: A detailed breakdown of the vesting schedules for every category are available in the official LiveArt documentation.

Getting your hands on $ART tokens is designed to be simple and rewarding, offering multiple ways to participate in the LiveArt ecosystem. The Fjord Sale provides a transparent and accessible entry point for anyone interested in joining. Hosted on Fjord Foundry and curated by Nova Research, the sale is scheduled to run from January 20 to January 27, 2025, using a fixed price model. Participants can purchase 1.5 million $ART tokens (1.5% of the total supply) at a price of $0.05 per token, corresponding to a fully diluted valuation (FDV) of $50 million (50% Discount from the last round). Tokens are released 10% at TGE, with the remaining amount vesting linearly over 12 months. This sale offers exceptional value to participants when compared to prior institutional rounds, which faced stricter terms:

• Institutional investors had no unlock at TGE, while the Fjord sale features a 10% unlock.

• Fjord participants benefit from a 12-month vesting schedule, shorter than the 21-month schedule for institutional investors.

• The public sale is priced at a $50M FDV, significantly lower than the $60–$100M FDV faced by institutional investors.

Note that upon TGE and initial CEX listings, each xART token will be converted to a vesting $ART token.

Another way to obtain $ART tokens is by participating in the Airdrop program, which allows users to collect Art Points through various activities tailored to different interests within the art community. These activities include Onboarding Quest Packages, Social Media and Community Engagement, Referral Programs, Gamification, and Collector Rewards. More information can be found here.

Conclusion

LiveArt blends tradition and innovation within the art market. The platform opens new opportunities for collectors, investors, and artists, transforming art into a more accessible and liquid asset class. Its diverse product suite, from curated NFTs and phygital artworks to fractional ownership of high-value pieces, is underpinned by a world-class art price database and the expertise of a team with deep roots in the industry. These elements position LiveArt as a leader in reimagining how art is experienced and owned in the digital age.

However, challenges remain. The success of fractionalized art relies heavily on maintaining sufficient liquidity in secondary markets, a task that could prove complex if demand does not meet expectations. Similarly, the NFT market, while offering immense potential, has seen volatility and saturation, raising questions about sustained interest and value. Additionally, the traditional art world, with its entrenched practices, may be slow to fully embrace these innovations, requiring careful education and outreach.

⚠️ Disclaimer ⚠️ : This research has not been commissioned by LiveArt and is not a paid piece. For full transparency regarding potential conflicts of interest, it should be noted that we are curating the launch that is taking place on Fjord Foundry. While this article reflects our genuine opinion on the project, it should not be considered as investment advice in any way. The same rule always applies: DYOR (do your own research).