Gate NFT, Gate.io’s dedicated NFT marketplace, has launched fractional NFTs making it easier for the average user to invest in blue-chip NFTs.. The company recently offered three different NFTs on the platform, giving users the option to own a fractional stake of Azuki 5057, MAYC 87 and MAYC 8016.
This is the pilot series of Gate NFT’s fractional NFT products. Both Azuki and MAYC are blue-chip NFT collections that have high demand in the marketplace.
Why Fractional NFTs?
Over the last couple of years, we have seen NFTs explode in popularity. Blue chip collections like Azuki, BAYC, and MAYC have become highly desirable assets. In addition, these collections have been heavily endorsed by celebrities, which has boosted their valuations even further. However, on the flip side, these NFTs are usually very expensive for the average person. For example, the floor price for MAYC and Azukis are ~16 ETH and ~10 ETH respectively, despite the ongoing bear market.
Fractional ownership is a set-up where a pool of investors combines their funds to jointly purchase an asset. Not only does this empower individual investors to own a high-value asset without taking too much financial stress, but it also allows them to earn ROI. As such, through fractional NFT ownership, it becomes possible for folks to own a part of an Azuki or a MAYC.
Fractional Gate NFT details
While the minutiae may change, the overall details of fractional Gate NFTs work like this:
- The NFT is split into 1,000 fragments.
- The subscription price for each fragment is 20 USDT.
- One user account can own upto 5 fragments of one NFT.
- After all the fragments have been purchased, Gate NFT will distribute them to the respective user accounts as per their subscription share.
- The fragment holders can determine ownership of the NFT. All decisions are made via a vote – with a 60% majority. If the owners decide to sell the NFT, they will get funds proportional to their share.
Conclusion
Fractional NFTs are an excellent way to solve the two biggest problems of NFT investing – the high threshold to entry and lack of liquidity. Gate NFT will keep putting more blue chips up for fractional ownership. So, be on the lookout for that and have the chance to own a part of your favorite collections.