Is the NFT fragmentation craze fluid exploration or performance art?

NFT pictures are very popular this year,

Look, NBA star Stephen Curry bought a picture of a monkey as a Twitter profile picture for $180,000; Justin Sun bought an NFT portrait for $10 million; US credit card company VISA bought an NFT for about $150,000. Avatar.

The NFT boom continues, but the price of hundreds of thousands and millions of dollars is prohibitive, and this emerging market is becoming more and more like a “few people’s game.” After the threshold of the NFT market was raised, it caused the difficulty of entering the market for newcomers. In response to this phenomenon, the fragmentation of NFT came into being.

What is NFT fragmentation

  • Speaking of NFT fragmentation, what is NFT first?

NFT is the abbreviation of Non-Fungible Token, which means non-fungible tokens. It is relative to interchangeable tokens. Non-fungible tokens are also called non-fungible tokens.

Take the Hongxing Erke brand clothes in life as an example. Clothes of the same model price are all homogenous tokens, which are interchangeable. That is to say, your clothes and mine are essentially the same and have the same Properties and prices. Not interchangeable clothes or non-homogeneous tokens, they are all unique, this is like art collections, etc., each piece is different, they cannot be replaced with each other, so they are called non-reciprocal Exchange tokens or non-homogeneous tokens.

  • Fragmented NFT?

The fragmentation of NFTs is similar to the “share split” in the traditional financial market, which increases market liquidity by splitting a stock with a higher denomination into several stocks with a lower denomination. It can also be seen as a group buying of Pinduoduo, where everyone contributes money to buy a product together.

NFT fragmentation is not about breaking the work into many pieces, but dividing the ownership of the work.

Break the prejudice that “NFT is expensive”

In the first half of this year, the concept of NFT went viral, and a painting sold for $69 million, but this high threshold prevented many people from entering the market. After the emergence of NFT fragmentation, it can lower the threshold for investors to enter the NFT, and everyone buys a part of this work.

Moreover, the scope of NFT fragmentation is very large, and everything such as videos, music, pictures, etc. can be NFT fragmented.

Of people participate in the supervision of copyright management to play an anti-counterfeiting role, which is undoubtedly a win-win for creators and NFT holders.

Market questioning

Fragmented NFT, take a mobile phone as an example. Consumers who buy a fragmented NFT can actually only buy 1/30 of a mobile phone. Unless they can collect 30 copyrights and take the mobile home, they will only have it. Collection and speculative attributes.

Theoretically, the fragmentation of NFT can lower the entry threshold for newcomers and solve the problems of poor liquidity in market transactions and low asset price efficiency. But the essence of this change is a change in financial attributes, which is to fragment the ownership of NFT commodities and turn NFTs into assets with financial attributes like tokens, facilitating market speculation and trading popularity.

However, there is a question. There is no new traffic in the single market. How can it last for a long time even if the rules of the game are “exquisite”?

At the end of the article

The author believes that NFT fragmentation is a very useful innovation that can empower the NFT market and improve the liquidity of the NFT market. But it remains to be seen how much new traffic it can attract.

Why NFT has attracted the attention of the market? It is different from Bitcoin and DeFi. NFT has the attribute of “goods”, and its value is also based on the value of “goods” instead of making money out of thin air. The uniqueness and authenticity of NFT is the core value, and the application based on core value is the long-term trend.

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/is-the-nft-fragmentation-craze-fluid-exploration-or-performance-art/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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