Assess their risks, liquidity, investments, returns, timeframes and other terms
Invest in multimillion-dollar art shares
Invest in collectible assets
The minimum investment required on Mintus for art investment opportunities is $3,000, with investment amounts typically ranging from $15,000 to $100,000.
Investing in Mintus carries risks such as market volatility affecting art values, limited liquidity options until the secondary market launches, potential regulatory changes impacting investment practices, operational challenges, and the subjective nature of art valuation.
Investing on Rally carries risks, including fluctuating investment values and no guaranteed selling price. The unique nature of collectible assets also introduces specific risks. Detailed risk factors are outlined in each asset's Offering Circular or Private Placement Memorandum, available in the asset's "Legal" section for investor review.
Mintus plans to introduce a secondary market feature, which is currently marked as "coming soon". This future addition aims to enhance liquidity by allowing investors to sell their shares in artworks to other users, although it's not yet available.
Rally's platform offers liquidity through Live Trading, allowing investors to buy and sell shares in real-time during market hours via the PPEX ATS, after a 90-day lock-up period. Shares must be held for 5 business days before resale, with brokerage services provided by Dalmore Group, LLC, a FINRA and SIPC member.
Mintus targets an 8.9% annual growth rate for investments, though actual returns may vary due to market conditions and art performance.
Rally's historical returns on collectible assets range from 1.35% to 84% over holding periods of 2 to 6 years. These all-time returns reflect the varied performance of different assets within this timeframe.
Investments through Mintus generally have a long-term horizon, often spanning several years, due to the nature of art appreciation and market trends. Exact duration may vary based on specific artworks and market conditions, with potential for earlier liquidity once the secondary market is introduced.
Investments on Rally typically have a 2 to 6-year horizon, suited for medium to long-term growth. A 90-day lock-up period post-Initial Offering restricts immediate trading, emphasizing a strategic, longer-term investment approach.
Mintus allows both individual investors and institutions to invest in artworks. Individual investors need to qualify as "high net worth individuals", "sophisticated investors", or "accredited investors" and pass an appropriateness assessment. Institutions like wealth managers and family offices should contact Mintus directly for specific investment options.
Rally is open to U.S. residents over 18 with a Social Security number, bank account, ID, and address in the contiguous United States, who pass KYC and AML checks.
The volatility of assets on Mintus, consisting of high-value artworks, is influenced by art market dynamics, economic factors, and the unique characteristics of each piece, such as rarity and provenance. These elements can cause fluctuations in art valuations, making them inherently volatile investments that require careful consideration.
The collectible assets on Rally, such as collector cars and memorabilia, exhibit volatility due to factors like consumer preferences, rarity, and market demand. Unlike traditional investments, their values can fluctuate unpredictably, reflecting the speculative nature of the collectibles market.
Mintus is authorized and regulated by the Financial Conduct Authority (FCA) in the UK. This regulatory oversight ensures Mintus meets strict standards for investor protection, transparency, and market integrity, although specific audit details are not mentioned.
Rally operates under strict regulatory oversight, offering securities regulated by the SEC and partnering with FINRA and SIPC-member broker-dealers, ensuring investor protection. Its operations and assets are regularly audited for compliance, financial accuracy, and asset authenticity.
Details on insurance for artworks on Mintus are not explicitly mentioned. Typically, art investment platforms secure artworks against risks like damage or theft through insurance.
Rally protects its collectible assets with comprehensive insurance to cover damages or losses, ensuring investor interests are safeguarded against unforeseen circumstances.
Mintus does not offer traditional dividends. Instead, investors gain returns through the appreciation and eventual sale of the artworks, receiving profits based on their share ownership.
Rally primarily offers returns through capital appreciation rather than dividends, with investors benefiting from selling shares at a higher price than the purchase price, based on the asset's value increase over time.
Investors on Mintus receive their returns after the sale of an artwork, with profits made available in their wallet. They can then choose to withdraw these funds to a bank account or reinvest in other artworks on the platform.
Investors can get their money back by selling shares on Rally after the 90-day lock-up period, during market hours, via the app. Success in selling depends on market demand. Shares must be held for at least 5 business days before they can be resold.
Fees on Mintus vary by artwork and investment structure, with all fees shown in advance in the Memorandum document available for each opportunity.
Rally charges no commissions or management fees on investments. Initial offerings include a sourcing fee detailed in each asset's offering circular. Instant Cash transfers incur a 1.5% fee with a $0.25 minimum, added to the transfer amount, but new users enjoy a 14-day fee waiver.
Mintus notes that artworks don't generate income while held, so tax implications mainly stem from capital gains upon sale.
Rally issues 1099 tax documents to investors who sell shares or receive dividends, available in their Portfolio by March of the following year. Investors with active investments receive monthly statements, typically updated by the first week of each month, with new investments reflected within two months.