Can an NFT be Divided? 3 Surprising Benefits!

Kevin Whitsitt

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3y ago 6:39

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Click on the link to learn more about Divided NFTs.

https://www.trustthelink.com/can-an-nft-be-divided-3-suprising-benefits/

Hello,

Today I want to talk about fractional NFTs. NFT as you probably know is rare digital shit. It's one of a kind. With cryptocurrencies like Bitcoin, each one is like all the other ones.

There is a way to break up an NFT. Someone would put it in a vault and then issue ERC20 Tokens that are the same to various investors. An ERC20 token you could think of as the software WordPress for a Website.

It just helps exchanges and wallets hold the token. ERC means Ethereum Request for Comment and I have no idea what the 20 means. Why would someone want to break up an NFT? One large reason is the cost.

Some NFTs can go for a lot of money just look at the Bored Ape Yacht Club right? One of those Apes can go for over $200,000. Maybe someone really likes the collection but doesn't have that type of money.

Fracturing one of these NFT's can help someone become an investor at a price they can afford. This really is the largest benefit to breaking up these digital art pieces. There are other benefits if you dive deeper. Maybe an artist wants more exposure. By dividing his art piece up and selling each one for less money he could get his name out there more right?

Think of each fractured peace as a business card. A third benefit that some people may not think about is it can help determine the price of the art piece. If 1 peace sells for $10 and there are 100 pieces. It can help determine the price of the other pieces and the whole NFT.

Not everything is rainbows and lollipops when it comes to dividing an NFT.

One of these digital art pieces is tied to 1 person which is ok. If you start to put one in a vault and then you start to issue stock of it you can see it running into some regulation problems right?

Legal and regulations might be an issue with dividing one. This actually happened to Ripple where the SEC (Security and Exchange Commission) claimed they were issuing stock to fund their business.

Things get tricky right? Bitcoin is different because there is no central business or entity that is issuing the coins. Instead, it's treated as property. If you want to learn more about NFT I wrote a whole blog post about it. I talk about 3 benefits these digital assets can bring to an artist or creator.

Why NFT's have value in the first place. I also go over-investing in NFTs and 3 things I'm going to look for and various tools someone can use that can be helpful. To learn more simply click on the link in the description or go to trustthelink.com.

Enough about me, What do you think of NFT's are they stupid? Would you ever purchase a fraction of an NFT? Are you into collecting things, if so what do you enjoy collecting? I've actually been somewhat of a collector of quotes and sayings. I hope this video or podcast was helpful. Bye for now.

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