Time for a new video though – and this covers a pretty unknown yet controversial sector of the NFT space – fractionalised NFTs.
While it is true that NFTs have spawned a new market and have captivated the imagination of many, the non-fungible token arena is, quite frankly, still a work in progress. And it will undoubtedly take some serious efforts for NFTs to gain ground in the mainstream financial world.
Up until this point, NFTs have been a majority illiquid market. But, apart for illiquidity, the NFT ecosystem faces many other drawbacks that are limiting its widespread adoption. These bottlenecks include high levels of market speculation, a general lack of regulation and security, as well as a lack of efficient storage systems.
But, with fractionalised NFTs, asset owners can mint tokenised fractions of their NFTs and share the ownership with others. This means that, theoretically, anyone can now own a highly-valued asset such as a yacht, a private jet or a luxury mansion at a considerably lower cost.
But, while there are clear advantages to using F-NFTs, major regulatory concerns have arisen with regards to their implementation. More specifically, its highly likely that these could in fact fall foul of securities laws.
In the video, I take you through all of these considerations. The ins and outs, pros and cons.
⛓️ 🔗 Useful Links 🔗 ⛓️
What Is NFT Fractionalisation: https://www.coinbureau.com/defi/fract…
Fractional NFT Marketplace: https://fractional.art
All You Need To Know About F-NFTs: https://medium.com/@arbenk/fractional…
SEC Attacks The NFT And F-NFT Sector: https://finance.yahoo.com/news/sec-be…
Legal Issues With NFTs: https://www.whitecase.com/publication…
Are NFTs At Risk?: https://www.bloomberg.com/news/articl…
📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading cryptocurrencies poses considerable risk of loss. The speaker does not guarantee any particular outcome.