Hey guys... Some concepts are easier to understand than others in the crypto space like owning a wallet and a key! Some others need more attention to details and sometimes there are general assumptions that people know something.
Yesterday I came across Artfi, an art-tech company making valuable art accessible to a wider audience with fractionalization of ownership with NFTs. I'm not sure if they are achieving this with ERC-404 cos there was no specification.
People could purchase portion of a high-value artwork, like those by Picasso or Banksy, instead of needing the full amount. Loads of royalty and industry leaders, including Princess Hend Al Qassemi, Landmark Group shareholder have endorsed it and they have crossed the $100 million valuation since 2022. I have no idea what's their worth is now.
My dilemma is what happens when an individual decides to buy the whole of one particular NFT and the fractional owners sell it to him, does he own the real-life artwork or only an NFT?
What could be the advantages of owning fraction of NFTs like these?
Let me know you POV in the comment section guys... Thanks
Partial ownership of NFTs is an interesting concept, which raises several important questions of how it works in practice. In most cases. By issuing NFTs like the one described. Ownership of a physical artwork remains with the custodian or organization that stamps it. The owner of an NFT distribution holds a share of the digital asset that represents ownership or rights to the artwork. But they are not physical objects. Thus, if a person buys all NFT editions of a piece of art, they stand a good chance of getting the control over digital content. However, that does not necessarily translate into physical art- unless conditions of sale clearly state that they are buying the physical objects.
Advantages of having NFTs distributed include accessibility, as they allow people to invest in high-value art with minimal financial effort. It also causes admiration. This is because the value of an artwork or NFT can grow over time. This benefits the owner. Distributed NFTs also provide liquidity as they can be traded on the market. This makes it easier to withdraw from your investment compared to owning traditional art. It can also be used to earn royalties depending on the platform and terms applicable to the NFT.
Finally, this is a new way of separating skills and finances. But it is important for investors to review specific laws carefully. To understand whether their ownership gives them limited rights to their physical assets in digital display.
And then you would be able to sell it off to those who got most of the fragments if the person is searching to get the full - picture -, as a puzzle. That sounds like a fine and interesting concept.
it is indeed an interesting concept and as mentioned by other, fractional ownership is a thing since long ago, but only recently gets implemented to the NFT just because owning a popular NFT deemed to be too expensive which does make sense.
but I wouldn't trust new platform with these protocol,
. since the NFT is on their vault, if it's not audited properly, there might be exploit, just imagine holding fractional ownership while the NFT is gone being exploited that'd be dumb, but alas, it seems so far everything has been going fine with fractional ownership.
I agree, fractional ownership is not a new phenomenon; however, its usage in the NFT space does, indeed, put it into the lime light. Especially with things like art pieces. As we have discussed, the entire thing would come pretty handy for the investors and may open different financial opportunities. However, raising right concerns arises with the 'new platform'. Protection of the integrity of that storage place which has NFTs is paramount. Otherwise, there will always exist risks when profit-making is concerned. Also, with that, the NFT glitches would mean losing very precious NFTs and that's what will deter many investors. Anyways, that is something that investors should do. It is in a quest to ensure that the platforms they are using will be strong on matters of security, transparency, and accountability.
On the bright side, these platforms are gaining momentum. But, as we've seen, things It's working well, however, it's still for early adopters. That has to be approached with care and weigh the risks as well as the potential rewards.
