F-NFTs which are non-fungible tokens already broken into fractions are surprisingly not traded on most of the well-known NFT marketplaces like Opeansea.io. Anyone interested in a fractional NFT might then be curious as to where to trade. This article explore five platforms of fractional NFTs.
1. Fractional.art
Fractional.art is one of the top F-NFTs platforms that allows buying, selling and minting of fractional NFTs through a decentralized protocol. This platform is accessible to everyone and not controlled by anybody. Fractional tokens allow owners to get a percentage of the profits of the NFTs sales, and this platform can be useful in gaining access to popular NFTs like CryptoPunks and Etherrock.
A noticeable feature that this platform has is the NFT basket feature which allows users to fractionalize not only individual NFTs but also the entire collections of NFTs. Fractional.art allows NFT owners to create an NFT vault. This vault sends the tokenized NFTs to new fractional owners. Withdrawal is only possible when a buyout auction is initiated. The buyer who emerges as the auction winner gets the NFT, and fraction owners then claim the ETH paid.
2. NFTfy
NFTfy is another leading permissionless F-NFTs marketplace made available for everyone. This platform allows users to fractionalize NFTs through three main processes (fractionalization, redemption and claiming). NFTfy makes it possible for fractionalization on different blockchains whether Ethereum, BNB, Polygon or Avalanche.
What makes NFT unique is its aim at tackling a major issue, which is the lack of liquidity in the NFT market. This is especially true for high-end NFTs where a user acquires an NFT, then the need to get a buyer for their investment becomes a challenge. What NFTfy does in solving this challenge is provide a liquid environment for NFT creators and investors by reducing high barriers to entry through its fractionalization process.
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3. LIQNFT
With the aim of solving the problem of monopoly in the web 3 NFT space, LIQNFT is a community-led and decentralized marketplace that deals only in the buying and selling of F-NFTs on the solana blockchain.
There is also the concept of serialization on the LIQNFT platform, which is quite different from fractionalization. Serialization creates a limited number of serialized tokens from an original NFT that is shared through a primary sale.
Unlike fractionalization where holders get a percentage of the NFT, holders of the serialized token get a 100% full ownership of the limited and serialized copy of the original NFT.
4. Unicly
Unicly is a trading platform built by NFT collectors and DeFi enthusiasts that combine NFT collection, tokenizes it and makes it possible to be traded at a lower price point. With uTokens, fractions of NFTs are sold. uToken is a creation tool that backs Unicly’s NFT collection market. Users are able to create their collection, have a name designated for it and know what is required to unlock the NFT collection and get it fractionalized and listed in its marketplace.
The uTokens are swapped into ETH when the collection is unlocked and buyers can be able to purchase the NFTs. The fractions of these NFTs are sold as uTokens. Before the collection can be unlocked, the potential buyer can set the number of uTokens that they need. Unicly is the largest F-NFT platform with over 60 NFT collections including CrytoPunks and Art Blocks. They also have other crypto features available on this platform.
5. WithOtis
Otis makes it possible for users to buy and sell shares of NFTs, arts, comics, collectibles and more. The Otis platform has a mobile app which users can get for free on App Store or Google Play Store. With the US dollar as its main currency,the minimum investment users can make on Otis is $1000. Some of the blue-chip NFTs available on the Otis marketplace are CryptoPunks, Pokémon Red, Grimes and a few others. Otis was acquired in Q1, 2022 by Public.com, a platform that enables users to invest in stocks, cryptocurrency and funds.
Closing thoughts
The innovation of fractional NFT is making it easy anyone to buy and own NFTs without having a larger exposure or risk. It also makes it possible for traders or collectors to diversify their portfolio. Fractionalization is helping to unlock more liquidity and utility for NFTs. However, fractional NFTs are not without risks. While it promotes co-ownership, the problem arises as to what legal rights do F-NFT holders have. There’s also the problem of inherited illiquidity from NFTs. That is, since NFTs are illiquid, fractional NFT buyers are also buying the illiquidity in the NFTs.
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