Horse racing has been around since 4500BC. Till today, it is still one of the most exciting games to watch. The horse racing industry is currently worth over $3.52Billion. This value was over $5 Billion between 2011 to 2018. Despite being a billion-dollar industry, not so many people involved in this sport have benefited from it.
The primary beneficiaries of this industry are mainly racehorse owners. Racehorses are usually owned by the wealthy because they are so expensive to buy and maintain. The average price of a mature racehorse is about $76,000. Such prices create a high barrier of entry for the everyday person that wants to be part of this industry. But, how about if ownership of these racehorses is democratized? That’s where Maxima comes in.
Thanks to inventions like the blockchain and NFTs, Maxima has identified a reliable and fair way of democratizing racehorse ownership. With these two inventions, it is now possible for anyone interested to own a racehorse without paying the thousands of dollars that these horses currently cost.
How Maxima works
Before explaining how Maxima works, let me share brief and simplified definitions of the two inventions this platform is taking advantage of; Blockchain and NFTs.
Blockchain is a self-monitoring system of storing information that is impossible to change, hack, or compromise. The immutability of the blockchain is one of the reasons it is used as the public ledger for cryptocurrency transactions and ownership. Yes, financial institutions like banks also store their information in a ledger. But the problem with their ledgers is the lack of immutability. So, the data they hold can be changed or compromised if anyone interested gets access to it.
NFTs stands for Non-Fungible Tokens, which refers to a unique and non-interchangeable unit of data stored in the blockchain to represent ownership of a digital or physical asset. So, an NFT of any asset can only be one at a time.
NFTs have become popular in the past couple of months. The common application of this promising invention is only in the digital world. Most of the popular NFTs we all know about include digital Art, videos, tweets, and many more. However, not so many NFTs are currently bridging the gap between digital and real-world ownership of assets.
With Maxima, you will own a real-world asset (a racehorse), and the proof of ownership will be represented through an NFT on the blockchain.
Now that you know what Blockchain and NFT mean, let me explain how Maxima works;
As I have earlier shared, Maxima is simply a platform that enables buying, owning, and selling racehorses as NFTs. Since an NFT to any given asset can only be one, once a racehorse is added to Maxima as an NFT, there can’t be any other NFT of this same horse on the blockchain.
How to buy a racehorse NFTs on maxima
Before a horserace is added to the platform as an NFT, the racehorse NFT creators have to first verify ownership through Maxima’s detailed KYC process. When ownership is confirmed, the horse will then be added to the platform with an attached value.
At this point, you might be asking yourself questions like, how the hell can an everyday person buy a racehorse that costs over $70,000? Maxima has a solution for this.
Since horse-races are very expensive, ownership of these NFTs can be split into shares amongst several individuals.
Through syndication, different people can buy fractional shares of the horse NFT, which they can sell whenever they wish. So, an NFT of one racehorse can be owned by over even 1000 people, with each of them having a share based on how much they invested.
One can also sell their shares of a given racehorse NFT at any time if they want to get their money back. Like any other NFT, the value of each racehorse is determined by a couple of factors, including its potential as it grows, racing history, injuries, general health status, and several other factors.
Some of the major defining points of a racehorse’s value will always be the racing competitions it is involved in. Whenever a horse participates in a given competition, its value will rise, drop, or stay the same based on its performance. So, you can imagine the thrill and anxiety racehorse owners will be having whenever there is a horsing race competition that involves their horse.
While buying a racehorse, you should always take time to know more about the horse so that you invest in one that will potentially grow in value. The racehorse’s value can also be affected by speculation based on the potential that people see in the racehorse.
How to be part of Maxima?
One of the ways you can be part of Maxima is by being a partner. If you have a racehorse farm, you can partner with us so that your horses are added to our platform as NFTs, which you can sell and earn at scale. The breed, health status, and size of the racehorse are some of the factors that will determine the value of your horse.
Own a racehorse
You can also be part of Maxima by buying shares of one of the racehorses. There will be several horses on the platform that you can choose from. Each racehorse has IoT devices attached to them to track its health status in real-time. So, buyers will be able to access the health details of each racehorse before they decide whether to buy its shares or not.
When a horse wins a race, owners will earn some of the prize money based on the percentage of ownership they have in that racehorse. Trainers, jockeys, and the staff that take care of the horse will also get some of this prize money.
About Maxima 🐴
Maxima is the world’s first NFT real-world horse racing platform. It aims to promote accessibility to horse ownership and investment opportunities within the horse racing industry in a fun, easy, and affordable manner.