Want to be owner of blue chip collection? It’s democratized now.

Is NFT fractionalization necessary?

  • For the owner, splitting unlock finance in an illiquid market.
  • Fractional NFTs provide more liquidity for the market
  • Fractions attract small investors
  • Fractions determine the market value of rare NFTs.
  • The number of enthusiasts and community is increasing.
  • Even if one participant sells his share at a price below the market price, this will not affect the value of other fractions and NFTs in any way.

How are NFT and F-NFT prices related?

At the moment, there is no mechanism that prevents the fraction from deviating from the underlying asset.

Redemption of NFT by the owner.

Previously, the only way to recreate the NFT was to buy back all sold fractions from their respective owners.

  1. To Allow redeem or not
  2. The minimum price at which it can be redeemed

What services can be used for splitting and buying F-NFT tokens

Fungible tokens can be bought on fractional platforms or secondary markets like Uniswap.

Conclusion

NFT fractionalization in its early stages. However, it is the next step in the development of the NFT market. Fractionalization will put more liquidity on the market. And Increase interest in NFTs through more investors.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store