While non-fungible token (NFT) collectibles have been all the rage, a few projects have been developing the concept of fractionalized NFTs so investors without deep pockets can purchase shares of an expensive collectible. Otis announced that anyone can now invest in a NFT made by Grimes, a world-famous Canadian musician. The platform allows anyone to purchase a small fraction of the recording artist’s artwork called “Newborn 1 & 3.”

Grimes’ Artwork ‘Newborn 1 & 3” Gets Fractionalized

During the last 30 days, statistics from nonfungible.com’s market history show that there was $219 million in NFT sales. Over 48,000 active wallets recorded 214,654 sales which is a steady increase in sales from the start of the month’s 120,150 sales. The website also shows that a Meebits NFT recently sold for 1,000 ETH or $2.1 million and a Cryptopunks NFT character sold for 450 ETH or a touch over $1 million.

The well known NFT artist Beeple made history when he sold his “Everydays: The First 5000 Days” NFT for $69 million via the luxury auction house Christie’s. However, these prices increase the barriers to entry, and only the rich can participate. This has led to NFT projects and developers to create fractionalized NFTs, which allow people to purchase shares of collectibles.

Bitcoin.com News has reported on the fractionalization of NFTs in the past as the protocol Unicly fractionalizes NFT collectibles via the use of a native token called utoken. These tokens can be traded via the Unicly-developed automated market maker (AMM). “[Unicly is a] protocol for combining, fractionalizing, and trading NFTs,” says the website. The protocol description states that you can transform your NFT collection into a tradable asset, with guaranteed liquidity.

Another project that fractionalizes non-fungible token collectibles is a platform called Otis. On Thursday, Otis introduced a limited edition Grimes’ NFT on the platform and revealed that “anyone can invest in Grimes’ “Newborn 1 & 3” for just $10.” The announcement details:

“Newborn 1 and 3 are part the first-ever NFT drop by Grimes, and represent an important cultural milestone within the NFT landscape,” the announcement noted. “Otis believes Grimes’ art will continue to be an icon in her artistic career and the overall legacy NFT artists .”

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Claire Boucher, known professionally as Grimes, is Elon Musk’s wife and the mother of his child “X AE A-12.” Otis highlights that the Grimes’ NFT “Newborn 1 & 3” is valued at $6,400 and the collection is entitled “Warnymph Collection Vol. Creators of the project believe that the NFT art will “keep continued relevance as an important milestone in Grimes’s artistic career, and the overall legacy NFT artists .”

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The Otis platform is available via iOS and Android operating systems and the app allows anyone to buy shares of “cultural assets.” The Otis platform has roughly 100 assets available from Banksy originals to Michael Jordan’s ‘Shattered Backboard’ sneakers.

Projects Like Fractional and Daofi Hope to Bolster the Fractionalized NFT Concept

Otis, Unicly and Unicly are just two of the protocols that are exploring fractionalized NFTs. There are many other projects working on this idea. A project called Fractional believes that fractionalization can help with price discovery.

“[If] the asset is extremely valuable and they want help finding price discovery, fractionalizing the item and selling 20% on the market can be a valuable tool to help understand how the market values the NFT,” the Fractional creators detail in a blog post about the subject.

Another project that is also fractionalizing non-fungible tokens is a protocol called Daofi which breaks NFTs down into fungible ERC20 tokens. Daofi’s blog post in mid-March also gives people an understanding of how the fractionalization process works.

Daofi states in his post that the NFT ecosystem must address “lack liquidity in NFT secondary market,” “centralized exchanges taking extremely large drop fees,” “[the] “lack of utility other than owning the collectible” and “content curation,” Andrew Lee, a Daofi representative stresses in the post.

What do you think about fractionalizing NFTs and the projects attempting to push this idea further? Please share your thoughts on this topic in the comments below.

Image Credits: Shutterstock, Pixabay, Wiki Commons, Grimes, Otis, Fractional, Daofi, Unicly,

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