DeFi & NFT
By James Thorp
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The SEC has been looking for information on so-called fractional NFTs. Fractional is about being able to breaking down assets into units that can be easily bought and sold.
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For clarity, A fractional NFT is simply a whole NFT that can be divided into smaller fractions.
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Fractional is interesting because it reduces entry costs, increases access, and enables new communities.
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The good things about Fractional NFTs are:
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Accessibility: Become a partial owner of collectable NFTs you otherwise could not afford.
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Freedom: Decide what to do with your NFT fractions (e.g., add the underlying NFT to a digital gallery, deliver to contest winners).
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Diversity: Deliver imaginative distribution events and novel post-purchase community experiences for your fraction owners.
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It all takes to start with connecting to the wallet and beginning to buy from the list of NFT collections.
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A typical NFT buyers sorts out the search engine to choose from the list of popular NFTs.
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So, for the SEC to be able to regulate an asset, the security should pass the Howey Test:
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The applicable standards are: 1. An investment of money. 2. In a common enterprise. 3. With the expectation of profits. 4. Solely from the efforts of others.
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Fractional NFTs are becoming a rage. They are now everywhere and many of them are coming with million dollar price tags.
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Fractional NFTs are becoming an issue, because they are stretching the concept of “non-fungible” - therefore, issuers will have to question themselves on whether they qualify as…
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Those who are buying fractional NFTs should known what they are buying and they should not be lied to.
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There is a widespread opinion that most of the NFTs might be heading for a crash. It is important for people to know that NFTs are more than digital art.
The Currency Analytics
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