Fractional NFTs – Future Trends, Where to Buy, How to Profit

Fractional NFTs are one of the hot trends in the non-fungible token sector right now. We explain what it all means and how you can get in on the ground floor as a collector and investor.

The NFT universe is expanding rapidly in art, gaming, sports collectibles and a host of other emergent use cases. As this new and exciting form of crypto token – non-fungible tokens assign ownership to digital (and non-digital) products – grabs the attention of both individuals and companies, new trends are coming into view.

Identifying those trends will give collectors and investors a head start on new areas of possible value and fractionalization is one such field.

Looking to get into fractional NFTs but you are just getting started with cryptocurrency, then check out our handy beginners crypto guide.

To date, one of the most famous examples of the fractionalizing trend is DOG Coin (The Doge NFT). It is a fraction of a non-fungible token depicting the famous Doge meme, which  doubled in value in the first 24 hours of trading. On 3 September it was worth $550 million.

PleasrDAO is the art collective behind the phenomenon. It purchased the NFT for around $4 million and began offering fractionalized ownership in the form of $DOG on 1 September. PleasrDAO keeps majority ownership of the fractions that constitute the meme NFT.

Why fractional NFTs?

There are at least three good reasons why fractionalizing NFTs can make sense:

  • Democratize art collecting – You saw an ape or a whale sell for $10,000 but we’re priced out of the action. With fractionalization you would be able to buy a fraction of the artwork for a much lower price
  • Better liquidity – You own a valuable NFT. You don’t want to sell it to realise its value but you wouldn’t mind selling some parts of the whole in order to unlock some liquidity. Fractionalization makes this possible.
  • More efficient price discovery – How much is that NFT in the virtual window really worth? Instead of listing on

    Fractional.art

    Fractional provides both a marketplace for buyers and a way for curators to fractionalize their existing art.

    You can explore live sales and auctions as well as closed vaults. As a buyer you are of course free to either hold onto your collectable or transfer it.

    Fraction also enables curators to fractionalize whole collections. The thinking behind this is to enable smaller collectors to effectively buy into the curating experience of someone who knows the particular scene or genre and the artists in fashion or that might become more fashionable.

    The platform also provides exchange functionality for quickly buying and selling a large listing of tokens. from wrapped and liquidity tokens to the token of NFT-specific protocols. As with all the services mentioned here, simply connect your wallet via metamask to get started.

    Nftfy

    Connect your wallet to either fractionalize one of your NFTs or to buy a fraction of one already on the platform’s  marketplace.

    When you fractionalize, you decide how many fractions to mint and what the exit price will be.

    The exit price is the price for buying the ERC-721 NFT. The funds paid are held in the NFT’s smart contract. Anyone who still owns a fraction can make a claim on the funds held in the smart contract.

    In effect an NFT becomes a whole new market. Nftfy uses Balancer’s liquidity bootstrapping pools for l

    Nftfy says it is the first fractionalization platform to enable platform users to start initial DEX offerings. for their ‘Fractions’

    Fraction.art

    Not to be confused with fractional.art, fraction.art is the “crowd sale” platform of a fork from Uniswap called DAOfi.

    This protocol takes a different approach to solving liquidity issues by using a bonding curve. The price of the token fluctuates within bounds set by a formula. Broadly speaking, the more tokens that are sold the higher the price, in line with a predetermined curve.

    Unlike the other two fractionalizing platforms we have looked at, Fraction.art supports the ERC-1155 NFT token standard. This standards enables a single contract to make various types of NFTs for a much more efficient process. ERC-1155 was developed by Enjin (ENJ).

    PleasrDAO

    PleasrDAO is a great gallery to check out for up and coming artists that are being collected by the art collective.

    PleasrDAO collects pieces that it hopes will appreciate in value and it aims to use those funds for charitable and benevolent projects and to fund “important ideas, movements and causes”. PleasrDAO is the behind the Dog Coin mentioned at the top of this article.

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