Following the skyrocketing popularity of NFTs among collectors, a new trend is the rise of fractional NFTs (fungible tokens), which allow anyone who owns assets on the blockchain to break the ownership into smaller pieces. NFTs are digital assets (to oversimplify) that have a unique fingerprint, which can be recognized even when files are copied. That way, someone who owns the original piece of digital art continues to own it, just like you would if you bought a physical painting. Someone else can always make the print, but the original can be recognized. With the rise in the value of NFTs (earlier this week, for example, rapper Snoop Dogg revealed that he is calling NFTs under a pseudonym, and is worth more than $17 million, or about Rs 125 crore) It is no surprise that people are now looking to NFT projects. These purchases can be divided into groups, where people believe the value will increase over time.
“It is very much as if the Louvre decided to split up the Mona Lisa and distribute a portion of it to be owned by the public. However, unlike the Louvre, collective ownership of art is actually only possible using crypto art. ,” Jamies Johnson, chief delight officer at PlacerDAO, an organization that represents member NFT collectors, said recently. said, explaining the concept.
The concept of fractional NFTs is intended to allow state-of-the-art retail traders to reap the benefits of experimenting in the crypto space. Fractional NFTs are considered an important part of the democratization of crypto culture.
Any NFT can be split into millions or even billions of pieces, so that many people can buy and keep parts of it. Holders can later trade their stake at an even higher price and make a profit on their initial investment.
In June of this year, the memes behind the popular cryptocurrency dogecoin was sold as NFT for $4 million (approximately Rs 29.5 crore). Later in September, when Dogecoin NFT was split 17 billion The parts, and were put up for auction, were valued at over $220 million (Rs 1624 crore).
The Doge meme NFT shows that no one can do a harder job than Dogecoin fans – splitting NFT ownership into 17 billion individually tradable pieces.
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For NFT owners, price discovery, asset liquidity as well as diversified investments are the three major benefits if they are considering divestment of their assets. report good by CoinBureau.com. “The division of NFTs is destined to disrupt not only the worlds of fine arts and gaming, but potentially even Decentralized Finance (DeFi)) and investing as a whole,” said the Coinbureau report.
Fractionalization of NFTs is mainly done by Ethereum Which is the second most valuable cryptocurrency in the world.
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