What are fractional NFTs?

[Celine Anderson]

A fractional NFT is a type of non-fungible token (NFT) that represents a portion or fraction of an original NFT. This means that instead of owning the entire NFT, multiple investors can own a fractional share of it, which can be traded on a marketplace like a traditional stock.

Fractional NFTs are created by splitting an original NFT into smaller units or shares, with each share representing a specific percentage of ownership in the original NFT. For example, if an original NFT is split into 10,000 shares, each share would represent a 0.01% ownership stake in the original NFT.

Fractional NFTs are designed to make NFT ownership more accessible to a wider range of investors. Allowing people to buy and sell fractional shares of an NFT, lowers the barrier to entry and enables more people to participate in the NFT market.

Fractional NFTs are typically managed by specialized platforms that handle the creation, sale, and trading of fractional shares. These platforms may charge fees for their services, and the value of a fractional NFT can fluctuate based on market demand and other factors, just like traditional stocks or other investment assets.

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