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- Avalanche is powering the fundraising efforts of Pressman Film through tokenization.
- With defined perks for investors, the duo has devised a strategy to avoid securities violations.
Avalanche (AVAX), a decentralized open-source protocol, has captured the attention of the filming and blockchain industry with a new partnership with Pressman Film. In a blog post, Avalanche noted that the partnership leverages tokenization to generate funds for six of Pressman’s new projects.
The Deal With Avalanche and Pressman Films
According to the details, renowned Hollywood filmmaker Pressman Film collaborated with Republic, a leading global investment platform, for the fundraiser. Through the partnership, Pressman will launch a tokenized public fund on Avalanche, allowing individuals to invest in its upcoming filming projects.
Lights, camera, ACTION 🎬 Avalanche is transforming independent film financing!@PRESSMANFILM, the production company behind “Wall Street,” “American Psycho,” and “The Crow,” teamed up with @joinrepublic to raise funds for a development slate of six Pressman films, tokenized on… pic.twitter.com/fG984GWgLL
— Avalanche 🔺 (@avax) September 5, 2024
The new fund will initially target six potential Pressman-backed films: three from a pre-existing catalog of Intellectual Properties (IPs) and three sourced from new concepts. Investors can buy a stake in the diversified slate for as little as $200. However, they would only receive a payout when one or more of those movies advanced past the development stage into production.
Rather than waiting to see if the completed film is successful in the marketplace, investors can receive a portion of Pressman’s production fee and rights fees. If the film makes it from production to release, investors will then get a portion of its net profits.
Other exciting perks for participants include behind-the-scenes access to Pressman’s filmmaking process, exclusive screenings, film credits, and collectible incentives. These incentives will help cushion investors if one of the six Pressman films does not become a box office hit.
So far, the fund has already raised $335,772 from 42 investors of its $1.5 million goal. With 72 days left to invest, many believe that the possibility of the fund reaching its goal is very likely.
Commenting on the new partnership, John Nahas, Chief Business Officer at Ava Labs, stated, “The Avalanche ecosystem continues to prove itself as an ideal platform on which to drive real-world blockchain adoption, including through the tokenization of culturally relevant assets such as film.”Â
Pressman Takes Proactive Regulatory Measures
In the past, projects have delved into funding film productions through Non-Fungible Tokens (NFTs). However, they have been careful not to portray NFTs as unregistered securities that collectors buy with the hope of making a profit.
Republic will now act as an intermediary in the film tokenization partnership between Pressman and Avalanche to bypass this contentious issue. The platform is registered with the U.S. Securities and Exchange Commission (SEC) and a member of the Financial Industry Regulatory Authority (FINRA).
Republic has a proven track record of deploying $3 billion across various sectors, hosting crowdfunding campaigns for entertainment entities like the producers of “The Walking Dead.”Â
Meanwhile, the latest partnership comes shortly after Avalanche announced a major upgrade, Avalanche9000. As noted in our earlier post, the upgrade aims to improve the network’s scalability and efficiency with customizable chains.
