Fractionalized NFT’s Lets You Invest in the Winners
Fractionalized NFT's let users buy portions of "blue chip" NFT art.
Following up on last week’s article about how the Non-Fungible Token (NFT) art market is sky rocketing, there are some new projects that make investing in NFT art less of a gamble. Many of the more popular “blue chip” NFT’s have been out of reach of the average investor for a while---the most expensive CryptoPunk, for instance, sold for $7.57 million USD. The cheapest one on sale is going for 51.85 Ethereum (~$168k USD).
Companies like Fractional are trying to change that. They fractionalize NFT’s and allow individuals to buy and sell small portions of some of the most expensive, high-end NFT’s ever made on their marketplace. Some of the most well known art projects are fractionalized and available to buy on their site now:
Opening up the art market to a huge amount of demand from small investors could continue to drive up NFT prices and help find the true value of an asset. In a blog post, the Fractional creators detail “[If] the asset is extremely valuable and they want help finding price discovery, fractionalizing the item and selling 20% on the market can be a valuable tool to help understand how the market values the NFT.” We focused on Fractional here, but there are other projects like Otis and Unicly working on the fractionalization of NFTs as well.