How Stellate7 Solves the "Pass the Parcel" Problem

In China, there is an idiom called "pass the parcel while beating the drum." For art investors aiming to make a profit, this idiom perfectly describes the current art investment market. The last buyer owns the artwork but may find it difficult to cash out and become a true collector.

Although artworks can appreciate in value, in our era of a large and rapidly expanding number of digital artworks, most artworks depreciate. Stellate7 is committed to addressing these issues and is pioneering a new way to invest in art, turning art ownership into a dynamic and profitable experience. To understand how Stellate7 is achieving this vision, we spoke with Carrie Calsson, co-founder of Stellate7, to explore the key features of their platform—the ArtCell Sync event.

Interviewer: "Carrie, Stellate7's ArtCell Sync event sounds fascinating. Can you explain what it is and who can initiate one?"

Carrie Calsson: "Certainly! The ArtCell Sync event is a unique opportunity for artists and collectors, whom we refer to as 'Launchers,' to engage with their art community and gain the opportunity for rapid expansion. It starts with any artwork owned by the Launcher, who sets the artwork price, ticket price for participation, and the minimum number of tickets to be sold. Once these parameters are defined, the event is ready to begin."

Interviewer: "What happens once the event starts? How are ArtCells and 'balls' involved in this process?"

Carrie Calsson: "When the event starts, the Launcher can decide to divide the 1,000 ArtCells of the artwork into a certain number of 'balls,' each representing a portion of the artwork. The Launcher can name these balls or use our default names, such as 'Soul Ball' for 500 ArtCells, 'Structure Ball' for 250, 'Spirit Ball' for 200, 'Element Ball' for 100, 'Core Ball' for 50, and 'Essence Ball' for 25. These imaginative names add an element of attraction and engagement for participants. The sale of tickets generates income that is placed into the event pool, which funds subsequent trading activities."

Interviewer:"How does the trading of these balls work, and what are the financial implications for participants?"

Carrie Calsson: "Participants trade these balls within the event. Each purchase increases the ball's price by 10%. Of the sales income, 5% is added to the event's pool, which helps fund the eventual buyback, while the remaining 95% is returned to the seller. This system ensures that as trading continues, the ball prices rise, enhancing the potential profits for all involved."

Interviewer: "What determines the end of an ArtCell Sync event?"

Carrie Calsson: "The event concludes when the total value of all balls approaches the funds in the pool. If a future transaction would exceed the pool funds, Stellate7 intervenes to purchase all the balls, effectively terminating the event. This buyback ensures that the market remains dynamic and fair, allowing participants to realize profits and avoid potential losses."

Interviewer: "How does this model minimize financial risk for participants?"

Carrie Calsson: "One of the unique features of Stellate7 is that almost no participant loses money. Since Stellate7 buys back all the balls at the end of the event, the last purchaser does not fall into the 'pass the parcel' trap. All ball buyers receive their investment back along with potential profits. Participants who do not actively purchase balls only contribute funds equal to the ticket price. However, they don't experience real losses because they still receive a small number of ArtCells for the artwork. These ArtCells represent opportunities for profit in future events. As the artwork goes through the second, third, and subsequent events, participants continue to have the opportunity to purchase and earn profits. Even if they do not participate in purchasing, they can still benefit from the appreciation of the artwork. Essentially, active purchasing is the key to winning in Stellate7's ArtCell Sync event."

Interviewer: "Can you elaborate on the reallocation of ArtCells after the event?"

Carrie Calsson: "Absolutely. After the buyback, Stellate7 redistributes the ArtCells based on purchase history. The Launcher retains 50% of the ArtCells, maintaining a substantial ownership stake, which aligns with our rule of 50% ownership. The remaining 50% of ArtCells is allocated to participants based on their purchasing volume. This means that the more a participant trades, the greater their share of the ArtCells. For example, if one participant buys a total of 10,000 and another 20,000, the latter will receive twice as many ArtCells."

Interviewer: "How does this process evolve in subsequent ArtCell Sync events?"

Carrie Calsson: "In the second and third events, the reallocation continues similarly. New participants are added to the artwork's ArtCell owner list, following the same rules. This ongoing cycle allows the artwork to continue appreciating in value while expanding its community of owners, making it a sustainable and inclusive model for art investment."

Interviewer: "What are the benefits for participants and Launchers in this model?"

Carrie Calsson: "For Launchers, it's a way to engage with their community and potentially increase the value of their artwork and cash in. For participants, it offers a dynamic investment opportunity where they can profit from both trading activities and the final allocation of ArtCells. Everyone benefits from a system that encourages active participation and rewards engagement."

Interviewer: "How does Stellate7 ensure transparency and fairness throughout the process?"

"Transparency and fairness are at the core of our operations. We provide real-time updates on trading activities and pool funds, ensuring that participants are always informed about the event's status. Our system is designed to be fair and reasonable, offering proportional rewards based on participation and investment."

Interviewer: "Finally, how can someone get started with Stellate7 and participate in an ArtCell Sync event?"

Carrie Calsson: "Getting started with Stellate7 is simple. Just register on our website, explore our collection of artworks, and participate in ArtCell Sync events that interest you. In addition to ArtCell Sync events, Stellate7 provides regular features such as selling and auctioning artworks. Whether you're an artist looking to showcase and sell your work, a collector seeking to acquire unique pieces, or an investor aiming to grow your portfolio, Stellate7 offers a comprehensive platform to engage with the art world and grow your investments. Our user-friendly interface and diverse range of services make it easy for anyone to participate and thrive in the art market."

Interviewer: "Thank you, Carrie, for providing such an insightful overview of Stellate7 and the ArtCell Sync event."

Carrie Calsson: "My pleasure. We’re excited to welcome more people to our community and revolutionize the way art is appreciated and invested in."