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Wesley Snipes to launch movie fund blockchain token

wesley snipes

Liechtenstein Cryptoassets Exchange (LCX) today announced it is tokenizing a $25 million movie fund in partnership with American actor and director Wesley Snipes. LCX said the partnership will allow the audience to invest in upcoming motion pictures and television shows produced by the famous actor and his production studio Maandi House.

LCX will be launching a regulated tokenized security using its blockchain infrastructure, allowing fans to invest in Hollywood productions alongside institutional investors and producers.

Investors in the token will get a share of profits from the productions and also enjoy additional benefits like possible tickets to movie premieres. All profits are “reinvested in the value of the token”.

“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,” said Wesley Snipes.

Traditionally, films have been financed by institutional investors and big players in the industry. Some hedge funds also engage in financing, whereby they invest in a portfolio of films rather than a single project. This guards against the risk of a single movie failing at the box office. Tokenization will allow institutional investors to invest small amounts instead of a portfolio.

For high profile producers such as Snipes, fans may be willing to accept lower returns compared to institutional investors.

LCX’s initiative to tokenize movie funds is not the first in the industry. Two months ago blockchain company tZERO announced a partnership with Vision Tree, to help the latter finance “Atari: Fistful of Quarters” movie through tokenization.

In May, Hollywood producer Ryan Kavanaugh’s Proxima Media received a $100 million investment from Step Ventures and the Central Wealth Investment Fund of Hong Kong. The aim was to issue a token to represent part ownership in Hollywood projects. Variety recently published a controversial article about Kavanaugh and a falling out with a banker over a movie funding exchange or market.