Report: NFTs And Crypto Art Takes The Industry By Storm In 2021
Report said that non-fungible tokens (NFTs) and crypto art have taken the industry by storm in 2021 and a number of projects aim to fractionalize pieces of NFTs to give collectors’ partial ownership rights.
It has been reported that projects that break apart, or fractionalize, non-fungible tokens are gaining interest following a number of groundbreaking sales that are beyond the reach of most investors.
However, with pieces such as Beeple’s “Everydays: The First 5000 Days” fetching a record-breaking $70 million, not everyone has pockets deep enough to bid on such extravagances. The buyer, known by the handle “MetaKovan”, purchased the piece for an NFT fund.
The report said that owning just a portion of a piece of digital art is an approach becoming more appealing to collectors, after a concept called Fractional Non-Fungible Tokens (F-NFTs) was originally conceived in 2018 as a way to offer shared ownership.
Likewise, a new decentralized project called Fractional will allow NFT owners to mint tokenized fractional ownership of their pieces facilitating the buying and selling of percentages of the full NFT.
Fractionalizing allows for the NFT holder to realize some liquidity from their asset without selling the entire piece. The platform will also enable users to fractionalize entire collections of NFTs and release them under one shared ownership token allowing those with less knowledge of the scene to invest in digital art complied by more renowned collectors.
Thus, the Fractional project works with NFT vaults, which take custody of the full piece and allow the holder to break it apart as they see fit. They can then send the ERC-20 parts to friends, auction them off, or use them for liquidity provision.
Source: Cointelegraph | Image: The Beijinger
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