Advertisement: “With Timeless, we make it possible for everyone for the first time to invest in valuable collectibles and thus participate in their value development” – Interview with Jan Karnath | news

“Timeless was founded with the purpose of providing access to unique and limited assets for all.” Can you initially briefly explain what the business idea is behind and how Timeless Investments was founded?

Jan Karnath: Since February 2021, we have revolutionized the asset class for collectibles, which for a long time was only available to the very wealthy. From as little as € 50 per share, everyone can invest in unique assets with us and participate in the boom in collectibles and their value development. I first became involved in fractional ownership about seven years ago. My enthusiasm for the subject flared up in 2016 when I spent nights studying and analyzing white papers with a good friend. It was clear to me that this technology would create entirely new potential, and I decided to continue my education at Stanford University and then found Timeless Investments.

How does an investment in collectibles work at Timeless?

Jan Karnath: First, we pick up, verify and acquire unique assets from specialized dealers, from collections, from individuals or auctions from around the world. We divide the asset into units so that our users can easily buy them digitally and in a few steps. All transactions and proof of ownership are documented securely, reliably and traceably at all times on the blockchain. For the optimal performance of a collector’s item, we strive for a storage period of 12-36 months for optimal performance. If users want to get out of their investment before we sell it, they can use the trading feature to sell their shares to other users.

What principles and standards apply when reviewing and evaluating a collectible? How is it ensured that an asset is not counterfeit and that it is stored safely?

Jan Karnath: Our collectibles are curated by experts and validated by data. We have a team of specialists dedicated solely to researching and analyzing potential assets. A myriad of factors are taken into consideration: rarity, cultural significance, history, originality, value, condition, and additional data-driven considerations. If an item does not meet our criteria 100%, we will not buy it. Once purchased, assets are stored and stored in a secure environment appropriate to the asset selected by us.

What are the benefits of investing in collectibles with Timeless?

Jan Karnath: With Timeless, we make it possible for everyone to invest in valuable collectibles and thus participate in their value development. With our business model, we democratize an asset class that for decades was only available to the very affluent – normal consumers often lack access and often the capital needed to invest in rare watches, limited sneakers or vehicles. Often, there is also a lack of expertise to assess individual investment opportunities carefully enough and to minimize risk through adequate diversification. We take all that from our users. We also take care of storage, maintenance and insurance of collectibles – and thus offer you an all-round carefree package, so to speak.

How do you assess the further development of the market and where do you see the company in the next 5 years?

Jan Karnath: With Timeless, we want to become Europe’s leading platform for investing in collectibles, in short: The Coinbase for Collectibles. With Timeless, everyone can own a piece of contemporary history, invest in things they love and understand. To achieve this, we will not only increase our volume significantly, but also expand our position as a European pioneer in the tokenization of collectibles – even the market leader. We want to focus even more on unique collectibles that characterize historic milestones.

How do you assess the chances of success for investments in collectibles?

Jan Karnath: In the medium term, collectibles will establish themselves as the third relevant asset class alongside cryptocurrencies and equities – especially for the generation of 20 to 40-year-olds who, due to low interest rates, rising inflation and high property prices, are much more diversified than their parents’ generation when it comes to the topics of old age support and prosperity to be set. The Knight Frank Wealth Report also confirms that collectibles belong in the 21st century portfolio. For example, the prices of rare classic cars have risen by six per cent in the last ten years and by 193 per cent in the last ten years. The situation is the same when it comes to the performance of specialty wines, whose prices have risen by 127 percent over the past ten years.

With the designation works of art and collectibles, Timeless breaks down the barriers to entry for collectors for small investors. How important is blockchain technology in the democratization of the art market in particular?

Jan Karnath: Blockchain is the backbone and enabler of our business model and enables us to store proof of ownership transparently, decentrally and securely. The increasing transparency through blockchain technology and revenue generation Digital art is an important driving force, which in particular art market will continue to democratize. From my point of view, blockchain with the underlying technology can be described as a fundamental bridge between the art market and wealth management, it is a catalyst for democratization. It is especially the young, web-savvy target group that drives this development and is increasingly establishing itself as an economically strong buyer group.

Timeless recently sold the first NFTs. How can these digital collectibles be classified?

Jan Karnath: We are currently witnessing a transformation in alternative investments: the 20th to 40th generation is also adding value to younger asset classes such as NFTs. So far, only a few early adopters have been able to invest in NFT blue chips and participate in their performance. With Timeless, anyone can now enter a new asset class, which will become increasingly established. The rise in popularity of NFTs has brought a wave of brand new buyers to the world’s most prestigious auction houses. For example, Christie’s states that 75% of this buyer base are brand new collectors with an average age of 42 years.
The figures show that we are in the midst of a paradigm shift that is being massively driven by new, younger collectors, who are also deciding which – sometimes completely new – collectibles they also add value to.

Image sources: Timeless investments

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