Jupiter Exchange Aims to Offer NFTs to a Global Market
While some names are looking to offer investors and collectors niche products, others are exploring alternative concepts. Some aim to deliver one-stop-shop platforms to cater to anyone looking to hold NFTs of real-world assets.
Jupiter Exchange aims to give people access to collectibles and iconic products once inaccessible.
Jupiter Exchange Aims to Offer NFTs to a Global Market
As an alternative asset exchange, Jupiter Exchange fractionalizes NFTs to make iconic objects accessible to anyone.
The platform enables collectors, enthusiasts, and investors to own digital assets previously unavailable to the general public.
Jupiter Exchange is looking to change the ethos of NFTs that found attention for their individuality. Unlikely other NFT marketplaces, fractionalized digital assets represent ownership of real-world assets.
CEO of Jupiter Exchange, Loren Dealy Mahler said,
“One of our main goals at Jupiter is to expand access to the alternative asset market. We want to make ownership of these high-end items possible by lowering the price point for people who have traditionally been excluded from market participation. This only works if the fractions are initially priced affordably, which can be achieved using the traditional methods of IPOs.”
When asked about how fractionalized an asset can be, Mahler explained,
“For example, an item with a high valuation will naturally result in a large number of available fractions. Once an item is listed on Jupiter Exchange, the market controls the price, and if market forces increase the share price significantly enough as to price out individuals, we can employ traditional capital market techniques to ensure continued accessibility.”
“It’s also important to note that these NFTs are unique and represent ownership of a real-world, physical asset, so the concern about price volatility based on speculation alone, typical of a more traditional NFT, is minimized.”
Jupiter Exchange Takes a Sector Agnostic Approach to Fractionalization
For Jupiter Exchange, the platform is sector agnostic. Jupiter does not focus on a single area such as music or sport. Mahler explained,
“Our fractionalized NFTs are backed by exclusive, high-end alternative assets that have traditionally only been available in private auction-based exchange models. This includes anything from art to cars and watches to sports memorabilia. There is no single sector that is individually critical to our success, because our goal is to expand access to the market across multiple sectors.”
Fractionalized NFTs represent real-world assets. An individual cannot own an asset outright, irrespective of demand and buyer purchasing power.
“The original asset owner maintains a majority ownership share, so while a single individual could purchase all shares available on Jupiter Exchange, they wouldn’t own the asset outright. Additionally, based on a variety of factors, there may be instances where we might limit the number of share purchases by a single individual.”
Competition Within the NFT Marketplace a Challenge for New Entrants
This year, the number of NFT marketplaces has increased significantly. Once a cornered market, the number of NFT marketplaces has diluted the earnings potential.
The current market environment has not dissuaded Jupiter Exchange from pursuing its goals.
FX Empire: “How do you see Jupiter competing with other marketplaces and what time horizons are you giving to have an active NFT marketplace for investors and collectors to trade fractionalized NFTs?”
Loren Dealy Mahler: “Jupiter is the first public alternative asset exchange. We are not a crypto exchange. Jupiter Exchange provides market infrastructure, data services, and technology solutions to a broad range of customers and market participants, including institutional and retail investors for alternative assets.
We fill a unique gap among existing exchanges by combining people’s real-world passion with traditional, regulated finance through the use of emerging technology.
We enable anyone to own the alternative assets traditionally only available through private auction houses and online trading platforms. Trading is then done on our own exchange through fractionalization of NFTs, which are backed by physical assets.
This combination of characteristics expands access to a new tradable asset class, creates liquidity, and facilitates real-time price discovery for traditionally illiquid assets that are too often off-limits to the majority of interested buyers.”
Jupiter plans to take an all-encompassing approach to digitalizing and fractionalizing real-world assets.
FX Empire: “Real-world assets are an enormous pool of assets to target and digitalize. Do you see any specific areas that would likely be targeted first, whether they may be sports memorabilia, art, or others?”
Loren Dealy Mahler: “We anticipate listing assets that cover a variety of industry verticals. Alternative assets can really cover anything that isn’t a traditional investment product, so we take the same open-ended approach to selecting the assets we list at Jupiter.
Our interest is anything from fine art to cars, sports, and pop culture memorabilia to sneakers and collectibles.
Anything that captures the beauty and universally appreciated value of the world around us could end up on the Jupiter Exchange.”
Jupiter Aims to Redefine Not Fit into the NFT Space
Marketing the Jupiter Exchange product to reach the target audience is a key to success. The current market climate and rise in illicit activity are challenges for new entrants. Jupiter Exchange tackles these issues head-on.
FX Empire: “How do you plan to reach your target audience and market the Jupiter brand to deliver fractionalized digital NFTs to households around the world?”
Loren Dealy Mahler: “Jupiter isn’t just a tech company. We are intentionally redefining the relationship between physical assets and digital ownership.
We carefully curate each asset to ensure that it’s something that truly captures the beauty of the human experience. This makes it easy to explain the significance of each item to both collectors, investors, and people who just appreciate the benefit of owning an iconic asset.
The challenge for us comes in explaining the technology and process that allows them to translate their interest into ownership.”
Jupiter Exchange has identified a demand for fractionalized ownership of digital assets that already exist in the real world.
Fractional ownership is a common structure for expensive assets. Examples include holiday properties, race horses, sports cars, aircraft, and art.
While some of these assets are functional, others are more personal.
FX Empire: “Hypothetically, if you were able to buy a fractionalized digital asset from the immense pool of real-world assets on offer, what would you buy?”
Loren Dealy Mahler: “Personally, I love things that capture a moment in time that is universally appreciated as significant. Something that represents an experience where the world changed right then and there.
Sometimes it’s sports, sometimes it’s music, sometimes it’s history. There is an intangible beauty and value to those kinds of things that I think is different from any other tradable asset.”