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Fractional NFTs Explained
In the latest Research Wizard Report, we take a deep dive into the world of fractional NFTs.
Even though they were in existence long before 2021, NFTs have been on a meteoric rise in the past year. Thanks to breakthrough sales and trading volumes for multiple NFT projects—with market caps valued in billions— they are now a part of mainstream dialogue.
Despite its unprecedented success, the NFT market remains illiquid. ERC-721 token standard is what represent most NFTs, making them non-interchangeable. Acquiring and trading these one-of-a-kind tokens then becomes complex and difficult.
There are other constraints currently present in the market that are limiting the widespread adoption of NFTs, such as copyright issues, environmental sustainability concerns, lack of security protocols and efficient storage solutions, and regulations.
This Research Wizard Report provides insights into how fractional NFTs will solve these issues. It will first walk us through what exactly fractional NFTs are, how they came about, how they work, and some noteworthy examples. Then, it lays out the incentives for fractionalising NFTs, why it’s a potential solution to illiquidity, and how it will make NFT ownership more accessible.
Read the full version of What Are Fractionalised NFTs?
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