- Tezos native token XTZ set its all time high at $9.18 on October 4, 2021.
There is no doubt that the last few months have been disastrous for the crypto industry, excluding NFTs. Almost all cryptocurrency prices have plummeted and have lost approximately 60-80% value since November 2021.
Tezos Commons tweeted that the developer team CrunchyTez is working hard to develop its first decentralized fractional NFT platform on the Tezos protocol.
The official news release of Tezos Commons on Medium explains the concept of the upcoming fractional NFT: “Each segment represents an ownership percentage of that NFT. This process allows an individual to hold ‘shares’ in the same NFT alongside many others.”
Tezos Commons said that fractional NFTs allow small investors to buy into the market, and liquidity was added with more NFT purchase options for a wider audience.
It is important to note that the underdevelopment of fractionalized NFTs will be tradeable on secondary marketplaces. Sliced.art will offer an NFT “slicing” service and marketplace to buy and sell sliced NFTs.
Not only will users of the platform be able to divide individual NFTs into smaller pieces, but they will be able to choose what percentage of the NFT they wish to slice.
How are Fractionalized NFTs defined?
Firstly it is important to understand what NFTs are. Basically, NFTs are non-fungible tokens available on a public ledger and guarantee exclusive ownership of an asset. NFTs can represent a wide variety of things like art, real estate and other real-world assets.
In the above two cases, valuable artwork or a piece of real estate can be worth a lot. However, for small to medium-tier investors, it may not be financially feasible to own the asset completely. That’s where fractionalization comes into the picture
As per the Tezos Commons news article instead of owning the entire NFT, the whole “pie” gets divided into several parts, and each part represents an ownership percentage of that NFT. This process allows an individual to hold “shares” in the same NFT alongside many others.
The marketplace will feature a clean UI, and it will be integrated with OBJKT.com, one of the most popular NFT marketplaces on Tezos for secondary trading.
This platform essentially extends an NFT slicing service to virtually all Tezos-based NFTs. Which, in itself, is a pretty big deal.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.