 Welcome to Jalassa News. My name is Rob and today this is the fourth video in a series we've talked about with Masterworks. Now, we've already talked to the CEO once, we've talked to Chief Investment Officer twice and today we'll talk with the Chief Marketing Officer, Mr. High Tran, to talk about what Masterworks is and what his role is within the company. We're also going to ask some questions about how can we verify that the art pieces that are being bought, where are they stored, where are they registered, can we look it up on the SEC website, can we see all these things because in crypto and digital assets we don't trust, we verify. So we'll talk about that and also we'll take a look at a subscriber from digital asset news as they had a 35% annualized return year over year for two years in their investments into a Masterworks art piece. Now, let me make this thing crystal clear. Does that mean that you will get 35% annualized returns? No, that does not. The crypto that I talk about on this channel, does that mean that you will make outstanding returns? No, it does not. Every single investment that you do carries a certain amount of risk. So you must be aware of that. But me personally, I like to diversify a little bit, like to put things into cash, into real estate, into crypto, into Masterworks and all different things in between also my businesses. So you can do whatever you want to do. This is not financial advice. I'm not your dad. Go from there. And lastly, I want to say this, Masterworks is a sponsor on this channel. However, I actually invest into Masterworks. I have two pieces, a Bass Yacht and a Banksy. So I have skin in the game as well. So if you cannot stand using affiliate links, just go to Masterworks to their website and check them out. And you can do all those things without the affiliate links, but it's up to you. So without further ado, let's talk to Mr. Hytrend. So first of all, as we know this is not a short-term place, this is fractionalized shares of art. But how does marketing and which is your specialty? How do you guys get this message out to the average investor out there that this is a very long-term play? And we're talking about two, five, seven years. The next one is in this current bear market, which we're going through right now, who is Masterworks for and is there a bear bull market for art? And lastly, we'll talk about storage. How can we verify this? We've got a big issue here in crypto and digital assets about proof of reserves. So I just want to know how can we verify these things? Because we like to not trust, but verify. So first things, first, how do you convey that message? Yeah, I'd say what we do that's a lot different than almost every other investing platform is, I think our requirements for understanding what the investment is is much more stringent. So we have a full financial advisor team. So unlike a lot of other platforms, just how to verify if this investment is suitable for you on this site, we actually do it over the phone. And obviously, it was like what's been happening in financial markets and frankly, just kind of finds on both SEC and FINRA side among some of the bigger players in this space. As a kind of a small startup, it's really important for us to just protect that part of our business. So I want to kind of give you an example and just show you a little bit of what our suitability process is. So for every investor that signs up and today we have an app, 1600. I'll just go into one of these users. So we're required to ask them a series of questions just to again understand if the investment is right for them. And if it's not, we go a separate ways and no harm, no foul either. So one of the things we ask is what's your basic investing knowledge? And it could be anything from novice to experience to advance. Obviously, if you're more advanced or experienced, that gives you a higher risk tolerance. We ask you, and this is probably one of the most important questions, do you understand that the objective of investments is long-term capital appreciation and the investment horizon is three to 10 years with some liquidity from secondary markets? And if you say no from this question, unfortunately, we'll have to just end the phone call right there. That will be something that will not be suitable for you. So that's really important for us to just make sure that people don't want to charge back. They change their mind and if life kind of needs that they need the funds in life, that they're able to get that back. And then based off of other answers that they have about how much they have to invest in liquid portfolio, how much they're making in income, we give them a max recommendation. So in most cases, this number here, in this case for this user is 15% of their overall portfolio. And this is more on the high end because they're more an experienced investor, they could be younger and they could have higher net income. And so $15,000 that could translate into $1,000 per painting. They may invest in 15 paintings over the life of their time with Masterworks. And that's generally kind of how we see investors that adopt it and use the platform as well. But generally, this guidance is meant to be what we tell folks is around 5% to 15% of their overall portfolio. And with that understanding that you should be prepared to hold this for three to 10 years, you can trade on the secondary market. And we built a lot of support for that, but definitely it's not the first option there. Gotcha. So we're talking about these types of things. And of course, it is a long-term play. I have invested myself. I have a Banksy and a Baskyot. But the question always is, well, how long are we talking about? And we had Alan Sokolitsky, Chief Financial Officer on, he talks about, look, if you're not comfortable with three, five and seven years for a long-term play, then this is not for you. And it makes a lot of sense. And the next question we had, which was, well, how are we looking as far as like the returns? So I actually got this, this was a direct message to me from Sky. And I took away his name for obvious reasons. But he DMed me, he said, hey, this was actually January 10th, 2023. So I just want to confirm MassWorks is legit. I invested December 2020. Today, it is the 19th of January 2023. So you're talking about two years plus. It has sold my painting. It's about a 70% gain over two years, literally one of the few things that actually gave me a return. I'm not going to invest the larger pot of something new. And to your point, it is totally uncorrelated. And I talked about, yeah, I still believe them. They don't give me any reasons not to. I said, which one was it? They said it was the brown painting sold for 1.8 million. And that's what it said right there, 35%. That's annualized. So you're talking about 35% for one year, 35% for another year, 70%. My math is correct. Check me in the comments section. And then I said, okay, we'll just get back to me to see how this works, because I've never, I haven't sold my paintings either. And he said, just to close the loop, it took a week or two. MassWorks did deposit back in my bank account, my initial investment plus gains game 75% over two years. This was after all their fees, which are 20%. So to your point, uncorrelated, great gains, 75%. Only real downside is this, money is not available until after the artwork is sold. So it is locked up. There's a secondary market that didn't really understand it too well, they want to get into it. But I'm good for two to five year holdings. And of course, with these type of investments, there is definite risk. And I can totally understand that. So I just wanted to bring that to everybody's attention that, yes, there are people out there that are investing, but they understand that is a very long term play. And I'd actually like to touch on a little bit of the secondary market, because I think it, you know, it can't be hard to understand. And I can give folks kind of a run through of how to actually use it. But yeah, I guess like, you know, when you think like, you know, kind of look back at the last two years, and you know, you shared that, that touch point from some of you, you know, who invested in the Cecily Brown. So something that I think a lot of folks misunderstand about this screen is that this is actually net returns. So this is after all of our fees. There's been a lot of, I think, some comments that I've seen about folks who say, well, after mass works is high fees, like these numbers are actually a lot worse than they are. But yeah, this is what investors get back after kind of all the work that we do. And yeah, I mean, we've built a fairly large team here in New York, we have 200 people. And really, you know, we're all kind of heads down and solely focus on trying to generate just as much value for investors as possible. Yeah, sure. And then I mean, just to just to speak to the point, well, two things. First of all, if we're talking about that secondary market, which was was a question there, if you like, this is my account, I'm not going to show you all the things I've done, however. But if once you get into mass works, if I just click on trading, I can go there. And here's all the different ones that are available. So this is now for share most recent trade. Usually it's around $20. Some go up, some go down, just like how we've seen it, and you can trade them. It is an option. Me, personally, I'm not a trader, so I don't really care about that. But it is available for everybody just so you know. Yeah, so, you know, obviously with a three to seven year hold, you know, sometimes it's just that just not realistic for a lot of folks. So we have this secondary market, which allows you to sell your shares and post your shares. And it's very similar to like how Robinhood works. So if I click on each investment, I can see like what the spread is, what the ask price is with the bid prices. I'm unfortunately not allowed to trade shares as a mass works employee. If I did have sales shares to sell, I just say how many shares I want to sell, what price am I satisfied with? I click commit. And these trades are fulfilled automatically in time if there's a buyer for that. So and if I wanted to, yes, I could, you know, trade a base off of last trade price. And frankly, a lot of people do use essentially just day trade on this. There's folks that have made hundreds of thousands of dollars just to take advantage of the spread. I don't personally recommend it because I think it's pretty time consuming. But if you, you know, if you have a lot of time in your hands and you're interested in trading our shares, check it out. Yeah, I've got, there's some people on the show that do that. That is not my thing. That is not my wheelhouse. I'm just here for the long haul and have fun with that. Okay. So hi. Thanks for answering those questions. Then it goes lastly that bearable market. I mean, because we're here for so long, is there really like in crypto, there's a bearable market in traditional equities, there's a bearable market, but is there like a bearable market for art? Because I mean, we just saw the sale of Paul Allen, and it sold for 1.5 billion. That was in November 9th, 2022, which is like, I mean, as everything was going down. So is there really a bearable market since we're holding these things for so long? I think, you know, there's a couple of things like one, like the art market is, it's pretty consistent in terms of how it's traded, right? So like $660 billion worth of art is traded each year. It's been pretty consistent. It hasn't really fluctuated a lot in the last, like, say 10 years. The other nice thing is half of it is traded publicly. So you have a very large data set to look at. So when you want to come up to come up with your own kind of conclusions of how the art market is doing, it's all publicly available. And you could, you know, when auctions happen, there's always headlines about it the next day. And you can see if things are generally selling for a lot of momentum or, you know, maybe not what you expected. But certainly, you know, you know, just objectively speaking, you know, the art market had what they're saying was their best year last year in history. So, so there's actually, well, two things. First of all, you talked about public transparency, those types of things. So real quick, just so everybody is aware as far as like with artwork. If we take a look at the store of value markets, this is from Fundstrap. You can see here value in billions. It says it talks about gold being 9 trillion. It's actually more than that. It's probably around 11 trillion. I think this is a couple of years old. Collectible art, 17 trillion, even more so than gold. Real estate, 228 trillion. Government bonds, 20 trillion. And cars and collectibles is $5 trillion. So there's a lot of funds to be slashing around there. It's just again, it is a very long term play if you're going to do something like this. But as far as like the public, not perception, but the ability to see these public transparencies. The last question here, storage. How can we verify these things are actually being bought and stored somewhere? Because we have an issue right now with different exchanges saying, oh, yeah, we have things, maybe they don't have things. So how can we verify that? Is there like, oh, some place to go to check that out? Yeah, I mean, you know, you could come to our office. We have a bunch of works that are on display here. We're opening up another gallery here in New York in the Chelsea area. It's going to be a pretty large gallery. I think we're going to have a majority of our works there. If not all of our works, I think we're going to get our ducks in a row in time for that. But let me also like, just I can share my screen a little bit. I mean, one of the nice things I think about our business and what I think is both kind of challenging and fun at the same time is, you know, we are completely, everything we do is public, right? So we are not only required to be fully transparent, but also I think we try to make it as part of our kind of mission or SOP here just to be as transparent as possible with folks. So you could look up any painting that we've done. So I've searched for a master of one, just have this be our first painting. And this is like, you know, it takes a little some getting used to in terms of understanding how to use this site. But essentially, you're looking for a document called form 253 G2. This is like a qualified offering circular. Everything before this is just correspondence of the SEC and filing things. I think like something that is kind of like, for me, it's kind of a blast blast for the past sector visitors. So when the SEC writes us that we write them, all this stuff is like publicly valuable. So you can see the SEC send his email here saying we have questions about this and what's your response to that. So, you know, it's kind of funny to be able to like kind of go through our journey and see how the kind of the vehicles have invested over time. Let's get back to your very original question, though. There's a line in here that says that the painting, sorry, the art storage facility is and it's stored at a warehouse located at 111 Allen Drive, Newark, in custody of Delaware Free Report. So this is an all filings where the paintings are being stored and 200 of them in there. So yeah, it's pretty, it's large and it's got $700 million worth of art. So yeah, very interesting to note as far as like where these things are and then on top of that, of course, you have to register everything with the SEC. So it makes a little bit of sense. All right. So hi, I think you've answered everything that I have as far as moving forward. I just want to remind everybody that again, long term play and no investment is without risk. That is for true. So far, pretty good track record, but at some point, you know, maybe some of these art pieces may languish and not sell for quite some time, or maybe they be made underperform. Anything is possible in investing. These are just the things that I am doing. I'm going to say that you have to do those things. And this is not financial advice, this is just something that we talk about here in the channel. And lastly, I will just say that, yes, of course, it is not a large part of my portfolio. Most of it is cash and real estate. There's a small percentage that has matched the works. And that is how I decided to allocate for me. So hi, thanks so much for stopping by. We appreciate it. If you'd like to learn more, there is a link in the description. Looks just like this. And that's it for today. So hi, thanks so much. We appreciate it. Thanks, Dan. That 4% looks about right to me too. So, you know, sounds good. All right, everybody, let's jump back.