Tim Salikhov
@salikhovart
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Collecting digital art at @grailcap
Joined December 2010
Couldn’t have wished for a warmer welcome to the city of blinding lights!
GM from Paris! Hosting my friend/business partner @salikhovart from @grailcap here feels like mixing work, art, and croissants into one beautiful soufflé. Meetings by 9 AM, baguettes by sunrise, and maybe a Louvre selfie in between. "Très productive, très chic, très Paris.
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What do you think about the 10 steps? What would you add? Let me know by joining us in the discussion in the comments below 👇
How to curate a generative art portfolio that 🔹 accrues value over time 🔹builds your reputation 🔹makes collecting fun in 10 simple steps 🧵
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An established repeatable process is key to collecting art profitably. For me, it comes down to 10 steps that combine qualitative & quantitative analysis.
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10/ Review & adjust your portfolio Keep tabs on prices and new artworks that are relevant for you Do not be greedy and take profits. Use 1031 exchange rule to defer capital gains tax. This will also keep your collection fresh.
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9/ Set aside funds for follow-ons I felt more comfortable buying a Squiggle at 10ETH in 2023 than at 5ETH in 2022. Size up as your conviction grows. For every $1 you invest, reserve an additional $1-2 for follow-ons.
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8/ Take risk with emerging artists Your alpha will come from low priced under-the-radar collections. 2/3rds of collections which returned 5X or more were priced below $1,000. Don't spray & pray. 3-5 emerging collections are plenty to boost your returns.
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7/ Invest in proven collections $20,000 Archetype is a blue chip. But so is $400 Paper Armada Get creative with your budget $2k-$5k artworks are a sweet spot Carefully chosen blue chips will maximize your returns in bull markets & minimize risk and volatility in downturns.
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6/ Build a diversified portfolio 7-10 collections yields best returns and minimizes volatility. Use 80/20 rule • 80% established artists / 20% rising stars • 80% large & liquid collections / 20% niche Being #1 expert in these collections will serve you well in the long run.
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5/ Assess value & potential Focus on relative price, past sales and liquidity Try to avoid: • High owner concentration • 5% or more listed for sale • 50%+ WETH sales Look for bargains among illiquid collections (many options among Bright Moments collections)
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4/ Conduct preliminary research After filtering by price, you’ll have 100-200 collections to work with. Choose those that appeal to you and evoke emotions. Learn about the artists & what their work represents. Narrow it further down to 30-50 that best fit your theme.
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3/ Map out your options There are 500+ collections across Art Blocks, Braindrops & Bright Moments If your budget is $10,000, focus on artworks under $2,000. 7-10 collections 5-20% per collection This narrows your options by 2/3rds and streamlines your selection process.
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2/ Define the theme of your collection Bridging Communities through Generative Art Formative Years of Generative Art on Chain Generative Art in the Anthropocene ... Pick a theme you want to research in depth. If it inspires you, there’s a great chance it will inspire others.
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1/ Collect with an end in mind Your collection’s value could be greater than the sum of its parts. Envision your ideal buyer in 10 years. What would make them pay a premium for YOUR collection? It could be chosen collections, specific artworks, overarching story & more.
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6. Build a diversified portfolio 7. Invest in proven collections 8. Take risk with emerging artists 9. Set aside funds for follow-ons 10. Review & adjust your portfolio Let’s dive into each of the 10 steps 👇
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Collecting art profitably implies having a process. 1. Collect with an end in mind 2. Define the theme of your collection 3. Map out your options 4. Conduct initial research 5. Assess value and potential Continued ⬇️
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Art is society’s oldest & favorite store of value. Done right collecting can also be profitable. Valued at $1B, on-chain generative art is the most exciting emerging asset class that offers a highly compelling risk-reward.
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How to curate a generative art portfolio that 🔹 accrues value over time 🔹builds your reputation 🔹makes collecting fun in 10 simple steps 🧵
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Learn something new? Which collections are you buying ahead of the next bull cycle? Let me know by joining us in the discussion in the comments below 👇
Next bull cycle is around the corner Do you own the right generative art collections? I analyzed the last two cycles – summer 2021 and summer 2022 – to understand which collections perform AND retain value best 🧵
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In our next analysis, we'll be breaking down genesis collections and follow-on series by the same artists. For more detailed market & art collection analysis sign up for our research: grailcapital (dot) substack (dot) com
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Top performing collections that retained value weren't just $100k Fidenzas or Ringers They were: • affordable blue chips (Meridians, Memories, Anticyclone) • under the radar collections (Paper Armada and Rapture) • select early 2021 curated collections and more
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