Why Fractionlized NFTs Are Securities.

Non Fungible Token (NFT) is a financial security consisting of digital data stored in a blockchain, a form of distributed ledger. The ownership of an NFT is recorded in the blockchain, and can be transferred by the owner, allowing NFTs to be sold and traded.
NFTs typically contain references to digital files such as photos, videos, and audio. Because NFTs are uniquely identifiable, they differ from cryptocurrencies which are fungible.
The market value of an NFT is associated with the digital file it references.
NFTs have been used as speculative investments.

What is a Fractional NFT?

A fractionlized NFT is an NFT that has been broken down into fractions to be sold individually. The DOGE NFT sale is a real-world example of NFT fractionalization.

🤳 Fractional NFTs are undoubtedly a good investment. They’re helping to unlock liquidity for NFTs, while also increasing inclusion and participation in the booming NFT space. They expand the NFT market’s new opportunities by bringing liquidity, price discovery and democratization.

🤳 The biggest benefit for fractional NFT owners is that they get to own a percentage of a larger, and more expensive, whole NFT. Depending on the NFT and the platform where the fractional NFT was purchased, the holder may gain some local governance rights on the platform with respect to a particular fraction set.

Advantages Of F-NFTs

Fractional NFTs present numerous merits for performers, artists, investors, and gamers alike. Here are some of the most vital aspects:

• Easier Monetisation: 
  F-NFTs allow artists and creators to monetize their digital assets more easily & without losing total control of them, as they just have to sell a smaller portion of the NFT.
• Democratised Ownership:
  Most popular NFTs are very expensive and almost out of reach for small or medium investors. The whales will sweep off such NFTs from the collection, and it will not be accessible to most people without fractionalisation. An expensive NFT becomes more affordable with fractionalisation, and ownership of it becomes easier for everyone in the community. Further, fractions depend on the value of the overall NFT, so they will fluctuate accordingly.
• Price discovery:
  Price discovery is defined as the process of determining the price of an asset in the marketplace through the interactions of buyers and sellers. This can depend on various tangible and intangible factors, from market structure to liquidity to information flow. When the NFTs are fractionalized, a specific % of it can be sold to gauge the market price of the tokenized asset. This process helps in determining a fair market value of the NFTs.
• Liquidity:
  F-NFTs help transform the erstwhile illiquid assets into liquid assets. The headlining feature of NFTs is that they can’t be replicated as they are unique. This uniqueness limits their access and makes them scarce and valuable for their collectors, who can be a few wealthy investors. F-NFTs enable NFTs to be traded in smaller fractions and since the ERC-20 tokens can be easily traded in secondary markets, the investors/traders can sell them easily and quickly to anyone else who is willing to buy a fraction of an NFT instead of a whole NFT itself. This trade is possible because the transaction value is comparatively smaller, adding more liquidity to the whole market.
• Curator Fees:
  F-NFTs are an excellent option for even the owners who mint their NFTs into F-NFTs, as they can earn an annual curator fee. The NFT owner has the freedom to set the curator fee; however, to minimise the chances of the curator gouging the other owners with high fees, a maximum amount is set and capped.

Why F-NFTs are Securities

Since the existence of computers, data theft through malicious hacking has become a serious concern to businesses, organizations and even governments of different countries. Data scientists and cybersecurity experts have relentlessly tried to secure data and networks from these malicious bridges into computer security protocols using various means.

💡Non-Fungible Tokens:
NFT blockchain technology makes use of cryptography to bring about records of transactions that cannot be altered and remains that way for as long as possible. NFTs are symbolized by using unique illustrations called cryptographic tokens. A cryptographic token brings about an added layer of security in a way that a particular asset can be tracked and identified.

About IX SWAP

IX Swap is a next-generation platform that leverages DeFi services backed by CeFi regulatory compliance to facilitate safe and convenient issuance, listing, and trading of security tokens and fractionalized NFTs.

By bridging the gap between traditional finance and innovative blockchain-based solutions, IX Swap is paving the way in democratizing access to traditional financial markets that have never been done before.

On the IX Swap platform, with F-NFTs, users would profit from its expanded utility through decentralised finance (DeFi) applications, positive cost connection and agreed expenses. A bigger community can be created with F-NFTs, giving opportunities to new NFT investors with lower floor prices.

Contact:

Website: http://www.ixswap.io

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