When I first heard about NFT’s years ago I saw them more of a small niche thing that probably would never take off. Well boy was that assumption wrong to say the least! I am very fortunate that I was able to get some pretty nice ones last year before they really exploded!

When they initially popped though there was a pullback and I couldn’t help but think “Thank God” otherwise the prices where going to shove anyone late away! I did not imagine this second price explosion like we have seen. It really caught me off guard but I will say I was not exactly staying in top of the NFT realm when it occurred. 

This second pop has brought up the idea and a lot of implementation of fractionalized NFT’s or F-NFTs. Honestly this idea makes a ton of sense and is normally something I would be all over however there is one thing that many people either are not aware of or do not want to discuss. 

At the Security Token Summit in 2021 SEC Commissioner Hester Peirce addressed this very idea. His answer was pretty clear and he didn’t hold back. He said “if someone wants to place numerous NFTs into one basket and sell F-NFTs or take one NFT and sell shards, then you better be careful you’re not creating something that’s an investment product, that is a security.” 

At a time when government regulation is pretty confusing and vague the way that he came out and said this to me holds some extra weight. The basket of F-NFTs does make sense as you are really creating a new product. The second part is what still makes me stop. While based off of what was said it would appear that the individual that took the NFT and created F-NFTs would be held responsible if they chose to come after F-NFTs well where does that leave those that bought the F-NFTs?

It’s a question without an answer and due to the uncertainty it makes me so hesitant to venture into the sharding of NFTs. I hope soon that this will be hammered out and made clear as owning a part of a crypto punk would be an amazing thing!