tl;dr: the ability to slice and dice asset ownership makes NFTs more appealing than traditional assets over the long term.

In Why Liquid Staking is a Game Changer

I wrote:

In Why Crypto Networks Will Win, I described the “Great Liquidity Unlocking” as one of the most powerful elements of this revolution. Namely that any asset, whether physical or digital, could serve as collateral or payment.

Recently, a first-generation Crypto Kitty, one of the initial examples of crypto-collectibles, was used as collateral for a 25,000 DAI ($25k) loan.

That loan took place on a marketplace for Non-Fungible Tokens (NFTs) called nftfi.com.

In a further sign of the evolution of this market, NFTs as a class are adding improved price discovery through NFT bank which seeks to be an NFT assessment agency (decentralized, of course).

Meanwhile, Niftex is adding the capability for fractionalized ownership of NFTs…something that represented one of the earliest possibilities and promises of crypto economies.

So, a piece of NFT aft on Rarible or SuperRare, the Sotheby’s of Crypto, if you will, can be purchased and then sliced up, giving buyers exposure to a piece of the asset while unlocking liquidity for the seller, who can maintain control even if ownership is less than 100% (as long as it’s more than 51%, of course).

The idea of “fractional shares” has only recently entered the lexicon of Traditional Finance. But it’s not something that comes standard.

In crypto economies, it does. That flexibility, and the opportunities associated with it, makes the entire asset class more desirable.

Just another step in the road.