Since China has become the second largest economy in the world, apart from material life, people are also pursuing a rich spiritual world. Relevant data shows that in 2017, the global art market had a total turnover of 63.7 billion U.S dollar, and the volume of transactions increased by 8% year-on-year. Among them, the global share of U.S. (42%), China (21%), and U.K. (17%) reached 83%, almost seize the entire global market.
It is known that 70% of the turnover in the Chinese market comes from auctions. It can be said that in the collectibles trading market, the auction companies can considered as the role of “the most reliable middleman”. “Most people trust the auction company’s reputation. Everyone believes in the professionalism of the auction company and their level of experts.” Long Chuen Fung, a senior collector and co-founder of the Freyrchain, told to Xiha Finance.
“However, if Freyrchain can solve this problem, the third party may not appear in the future.” Long Chuen Fung said.
With the rise of big data, Long Chuen Fung and his team have been consolidating the relevant data on global art for decade and it has formed two databases worth hundreds of millions. last year, Long Chuen Fung met with the Waltonchain’s CEO Mo Bing, in addition to understanding the advantages of blockchain technology, Long Chuen Fung also realized that the data and resources he has accumulated over the years could be combined with blockchain technology. In result, Freyrchain quickly became the first childchain of Waltonchain.
“The market still pays attention to the orderly inheritance.”
The Chinese show “JianBao (collectibles authentication)” are well-known to people who love collectibles. In the show, not only was the audience surprised when they saw the value of the collection exceeding their imagination, but there was also a roller coaster-like heartbeat after authentication.
For a long time, collectibles have been considered a special-interest game for “rich people”. At this point, the data has been refuted. With the increase in national GDP, collectibles investment has become a high rate of return and a more widely recognized investment method.
However, this type of investment is still in its infancy in China. “Europeans have been studying collection for hundreds of years. Generally speaking, Europeans study the collection at first and then decide whether to collect while Chinese people collect and then begin to study”, Long Chuen Fung said.
Because of this, how to accurately understand the orderly circulation of a collection is particularly important for Chinese collectors.
In 2014, the collector Liu Yiqian took the Ming Cheng Hua Doo Rooster Cylinder Cup for HK$290 million, which created a great sensation. The Rooster Cup is an emperor’s product, and it has been sold for five times since it was auctioned in 1949. The previous auction before Liu Yiqian was in 1999 when the price in Hong Kong was only HK$29.17 million, but it was also the highest transaction record of ancient Chinese porcelain at the time in the international auction market.
In Long Chuen Fung’s view, this shows that the market still pays attention to the orderly inheritance. For this reason, he hopes that the Freyrchain will allow more people to intuitively recognize the value of the collection.
“Actually, Freyrchain mainly solves two major problems. Firstly, China actually has 80 million collectors, but are there really 80 million antique artworks in China? In other words, it is estimated that counterfeit artwork accounts for almost 60% of Chinese antique artwork, so Freyrchain hopes to solve the 60% counterfeit artwork issue. Secondly, the authenticity of new artwork is another issue. Freyrchain is an open platform where there are some new technologies in terms of data, role, value and inquiry, and authenticity issues can be solved by these technologies.”
According to Long Chuen Fung, nowadays Freyrchain has already possessed the most complete physical library of Chinese art and the largest collection database in the world, of which the total amount of artwork is about 27 million,and the total number of documents is 4693. Its earliest source of digital documents traces backs to year 1470 and all information in the platform database are capable for search in order.
“Collections can also become game for everybody”
Because of the large number of collections, Freyrchain has already completed two deals with the auction house and achieved real world application: once was at the auction organized by the United States Linwoods Auction house and another one was at the Shinagawa, Japan. In these transactions, the successful bidder completed the transaction by using FREC (Freyrchain’s pass).
According to Long Chuen Fung, since auction houses use big data the most, they have chosen to use the auction house platform to promote Freyrchain. “Our data is abundant and auction houses will also use our data because they want to make antique-catalog which are the records of the collection’s circulation, and these all can be found in Freyrchain’s DAPP.”
Huang Shiyang, Freyrchian’s COO, said that apart from the data, there were also experts in art industry to spread knowledge on the chain. Collectors can use Freyrchain to search for knowledge. “In addition to improve this artistic ecology, Freyrchain also hopes to combine with the entire international art industry and to study the knowledge of art thoroughly”, Huang Shiyang said.
In Huang Shiyang’s opinion, although most of the collectors in the industry are at the top level, in fact the collectibles trading is not limited to block trading.
“I’ll give you the simplest example, a stamp is also a collection. In our Freyrchain Dapp there is a section called the contemporary art section, and in this contemporary art section there are actually many goods worth collecting with low price, in addition, like the rooster cup I mentioned before, its derivatives are also worth collecting. Besides, we will also help a small amount of ingenuity artwork to promote. It is not only people at the top of art ecology that can participate, we hope that everyone can join. And Freyrchain will make a great contribution to the mass market”, Huang Shiyang said.
It is understood that at present Freyrchain’s project has been recognized by art industry. Apart from Long Chuen Fung, the team members also include antique connoisseurs He Mingfeng, Kelly Zhang, and the collection agent Huang Shiyang, they all have experienced in international collections industry. The consultant team is also transnational and cross-border, including the world’s top Himalayan art scholar — Jeff Watt and the chairman of Hong Kong Society of Art Craftsmen — Zhai Jianmin and so on.
“Actually, I think the potential of the entire Chinese market is very large. China has already been reforming and opening up for 30 years and it has already changed from solving the problem of food and clothing to pursuing a rich spiritual world. The potential of the entire collection is enormous”, Long Chuen Fung said.