Retail investors have so far had little opportunities to directly participate in the profits of successful film productions. That might change in future, as film-makers can tokenize their projects.
“How do you think we fund this operation? We’re not exactly the March of Dimes.”
Do you know who said that?
It was Dr. Wesley Snipes. Not exactly Dr. Snipes himself, but Blade, the half-mortal, half-immortal character which he played in his famous vampire-hunter movie.
Another quote from Dr. Snipes:
“It’s an exciting time now that all of my fans, old and new, can indirectly become co-producers of our upcoming movies. The tokenized Daywalker Movie Fund enables the audience to turn into investors and participate in the success.”
That’s right: Dr. Snipes will tokenize a movie fund, and he will do it in Liechtenstein. That’s the real Wesley Snipes though – not the one who kills vampires with a hand-crafted sword.
That said, nobody knows what Dr. Snipes actually does in his spare time…
US$ 25 million movie fund will enable access to Wesley Snipes’ production projects
Dr. Wesley Snipes and Liechtenstein Cryptoassets Exchange (LCX) announced a partnership to tokenize a US$ 25 million movie fund. The fund will invest in upcoming motion picture and television shows produced by the famous actor and his production studio Maandi House.
Specifically, the goal is to launch a fully regulated tokenized security via LCX’s platform to lower the barrier of entry to the movie industry. Via the token, a broader audience of institutional and retail investors may invest in Dr. Snipes’ film-making projects.
The fund ist called Daywalker Movie Fund (DMF) and will be represented by the DMF Security Token. Dr. Snipes himself and an investment committee consisting of professional fund managers will manage the fund and allocate its production budgets.
LCX will organize the offering and list the token for trading
Investors holding the DMF token will participate in the profits of the productions and IP rights. Additionally, they will receive non-financial benefits such as the opportunity to be invited to the movie premiere events. Profits are not issued in the form of dividends but reinvested in the DMF token. Pre-registration is already possible at LCX. Registered users will be prioritized as soon as the security token offering will be officially published.
LCX CEO Monty Metzger said, “Since months the team at LCX has been preparing the partnership including evaluation of regulatory and legal aspects – and we are excited to share this finally in public.”
Tokenization could have significant impact on the film-making industry
Wesley Snipes is not the first to have this idea. In May, producer Ryan Kavanaugh-founded the firm Proxima Media, which has secured $100 million for a new crypto token intended for the Hollywood industry. “Proxicoin” is built on the Ethereum blockchain, and supported by the Central Wealth Group of Hong Kong and Step Ventures.
The value proposition is promising. Hollywood film-making projects have so far not been on the investment radar of retail investors. Yet, the profit potential for successful film productions can be enormous. Like with other historically illiquid asset classes such as real estate or private equity, tokenization could reshape the way how movie productions are being financed – for the good of both, film-makers and investors.