It goes without saying that the luxury watch market has seen remarkable growth in the past years, and studies show it’s not slowing down. In 2021, the preowned watch market reached $22 billion, making for one-third of the overall watch market, valued at $75 billion. “Buyers are paying high premiums for preowned models from top brands such as Rolex, Patek Philippe, and Audemars Piguet, as well as from leading independents such as F.P.Journe and De Bethune, with the expectation that the value of these watches will continue to rise.” (BCG Report, 2023) However, to be able to witness this uprise, one must not only know which timepiece to purchase, but these must be kept in perfect conditions to then be sold in the secondary market. The innovative platform, Elephants, will provide a solution to those interested in becoming part of the luxury watch market by providing its users with a selection of the most valuable timepieces, storing them in a secure vault in Switzerland and fractionalising the asset using blockchain technology, making it an affordable asset class. Fractionalising blue chip luxury watches is an innovative and exciting way for collectors to access high-value assets at a fraction of the cost.
Elephants is a Swiss-Italian startup that is leveraging the power, protection and traceability of blockchain technology to divide the cost of high-end watches among several owners. The watches selected on the platform are unique, vintage and out of production, ensuring their status as rare and iconic. The limited supply of these timepieces leads to a very high demand in the market.
How it works:
- Elephants uses a data-driven approach to select the luxury timepiece.
- Users can buy fractions of the asset.
- When the campaign is completed, Elephants stores the timepiece in a safe location.
- Elephants monitors the market and helps the owners find the best time to sell the watch, the funds are then divided among the owners proportionally.
How asset fractionalisation works:
Asset fractionalisation is facilitated through a technology called blockchain. With blockchain, the ownership of the fractional shares of the asset is recorded and verified, making the transaction secure and transparent. An asset owner or issuer can subdivide the asset into as many fractional shares as they want, and these shares are then sold to multiple buyers through a platform that facilitates asset fractionalisation.
Once someone purchases a fractional share, they become a part owner of the asset and can enjoy the benefits of ownership associated with the asset. The ownership percentage is proportional to the number of shares an users holds.
What is the blockchain?
Blockchain is a decentralised, digital ledger technology that records transactions in a secure, transparent and tamper-proof manner. It is essentially a database that is distributed across a network of computers, where each computer maintains a copy of the ledger. Each block in the chain contains a hash of the previous block, a timestamp, and transaction data. Once a block is added to the chain, it cannot be altered or deleted. This creates a transparent and trusting system, making it a popular technology for applications such as cryptocurrencies, digital identity verification, supply chain management, and voting systems.
Benefits of fractionalising blue-chip luxury watches
Fractionalising blue chip luxury watches has become an increasingly popular financial strategy over the past few years. What makes fractionalising blue chip luxury watches so appealing is that it allows people to own a piece of something luxurious and valuable without having to spend a fortune.
One of the most significant benefits of fractionalising is that it allows watch collectors to purchase a share in an expensive timepiece that they may not have been able to afford otherwise. Through fractionalising, watch enthusiasts can purchase fractions of multiple high-end watches, rather than spending all their money in a single timepiece. This reduces the risk associated with owning a single asset and provides greater flexibility when managing their assets. Fractionalising allows watch collectors to benefit from potential growth in value without having to worry about the maintenance costs or storage fees associated with owning a physical watch.
Who can access the platform and when the first piece will be available?
Elephants is a platform that was created for watch collectors and enthusiasts alike. Unlike other platforms that fractionalise luxury assets, Elephants is determined to specialize in luxury watches only, making it the best asset fractionalisation platform for those with a passion for horology. Anyone can access Elephants and become a member of the platform.