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Last year has brought the explosion of non-fungible tokens (NFTs), turning them into a massive trend in the crypto world. The NFT trading volume has skyrocketed between the second and third quarters of 2021, going up by over 700%. According to estimates, around $41 billion worth of crypto was used for purchasing NFTs.
While this sounds excellent for the NFT industry, it is not as great for retail investors. The reason being that over 90% of NFT investors were able to buy only 20% of the NFTs sold in total. In other words, $32 billion out of the mentioned $41 billion used in this period was spent by only 9% of wealthy investors who could afford to invest in collections simply for the purpose of having them.
In other words, the NFT market ended up being too expensive for the average person, which is not surprising, given that a single NFT can cost anywhere from a few hundred dollars to thousands of dollars, depending on the collection, its popularity, rarity, use cases, and so on. This is why a company called The Piece decided to get into fractionalization of NFTs and fractional NFT investing, and it chose Fantom to help it reach this goal.
We are pleased to announce we will be collaborating with @FantomFDN! 🥳
— The Piece (@ThePieceNFT) June 30, 2022
What is the partners’ goal?
The Piece is an EU-based NFT marketplace that intends to offer fractionalized blue-chip NFTs and allow users to invest in them by only purchasing a small fraction of expensive NFTs. In doing so, investors will receive partial ownership, but also pay only a fraction of the NFT’s total value. This means that regular individuals will be able to own pieces of huge collections such as CryptoPunk, Bored Ape, and other leading NFT collections, for the first time.
With Fantom’s help, The Piece intends to become the leading marketplace for fractional investing, which is its grand plan for the future. Over time, the company has even greater ambitions, such as delving deeper into offering fractionalized assets, potentially even offering the ability to purchase fractions of real estate or other highly expensive assets.
The Piece’s CEO, Jonas Rubenbauer, stated that the company is quite happy to work with Fantom because it strongly appreciates the way Fantom handles projects in its ecosystem. He acknowledged that The Piece is still a fairly small project, but he also noted that Fantom’s staff already provided excellent support for them.
Another reason why the company chose to team up with Fantom, specifically, is the fact that they saw the opportunity to combine the advantages that the Fantom chain has to offer — such as low gas fees and great scalability — with the company’s own project. As a result, The Piece expects that the user experience that the collaboration will be able to offer will be as good as it can get with currently available technologies.
To learn more visit our Investing in Fantom guide.
Ali is a freelance writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading. His work can be found in various high-profile investment sites including CCN, Capital.com, Bitcoinist, and NewsBTC.