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NFT

HP & F-NFT: A Novel Approach to Finding Liquidity and Accurate Valuation

NFTs are one of the fastest-growing sectors in the crypto world. The more expansive NFT space can grow significantly thanks to the enjoyment, market depth, and simple components.

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When you consider how much transpired in such a short period of time, the progress is even more impressive.

Decentralized Finance with NFT

Despite the hype, NFTs are primarily used for collectibles, gaming, and digital artwork.

While the market waits for the next big thing in this domain, enabling NFT to reflect fractionalized real-world asset ownership could be the next big thing. Not only for the expansion of the whole NFT business but also the DeFi world.

Anyone with a secure wallet will be able to trade shares of exotic private-sale tokens or fractionalized NFT for private investment. Of course, this development could be disruptive, but all of this is achievable because of a single protocol.

What are Fractionalized NFTs?

Fractionalized NFTs (F-NFTs) is a new decentralized initiative that will allow NFT owners to create tokenized partial ownership of their things, allowing them to purchase and trade pieces of the entire NFT more quickly.

Furthermore, fractionalizing allows NFT holders to get liquidity from their assets without exchanging the entire token.

The Advantages of F-NFTs

What are the advantages of F-NFTs for asset owners? Let’s find out.

Easier Investments

Users will be able to fractionalize whole collections of NFTs and deliver them under a single distributed ownership token, allowing those with limited knowledge of the field to invest in digital art amassed by more well-known collectors.

Compatibility with Vaults

The Fractional project uses NFT vaults, which control the entire article and allow the holder to divide it into sections as needed. The fungible ERC-20 tokens can be transferred to friends, sold, or used as a liquidity reserve.

When an excited party arises, they can transfer an amount of ETH equal to or more than the stock price of the asset being sold. Following the auction, the winner will receive the NFT, and token holders will request reimbursement for the ETH paid.

Decentralized Autonomous Organization Finance (DAOfi)

Another project, DAOfi, has developed a decentralized exchange for fractionalized NFTs derived from Uniswap. It was created to address the liquidity problem in the secondary market for NFTs. NFT owners using DAOfi must wait for someone to buy or bid at an asking price for a certain item.

Buyers can own a piece by converting non-fungible ERC-721 tokens to fungible ERC-20 tokens, similar to owning a reproduction of an artwork. On DAOfi, the fungible tokens will be placed on a bonding curve, allowing algorithmic liquidity to be offered to customers and merchants at any time.

The Future of F-NFTs on Horizon Protocol

Horizon Protocol is looking into the possibility of fractionalizing NFTs by having someone lock the original NFT or by constructing a synthetic replica of the NFT that is fractionalized and backed by our debt pool.

Horizon Protocol can provide liquidity and a better price gauge for NFTs that are instead sold and bought rarely and in wholes, such as paintings sold once every few years at a subjective price. Paintings sold once every few years at a subjective price can be fractionalized, and parts of the painting can be traded, just like any other asset. This boosts liquidity and gives the original NFT’s owner/s a more active and contemporaneous price.

Horizon Protocol is also looking into adding new DeFi layers to NFTs, such as staking, lending, and shorting.

Summary

Horizon Protocol’s system provides a secure and safe environment for synthetic assets that mimic the real-world economy. The infrastructure enables the trading of a variety of novel asset classes. In addition, horizon Protocol’s synthetic asset frameworks (crypto and real-world economy) have been expanded to include fractionalized NFTs, giving users and NFT owners a novel way to uncover liquidity and more accurate valuations.

NFT

Snoop Dogg Gives Advice to Reese Witherspoon on Ethereum NFTs

Snoop Dogg, a celebrity NFT collector, shares his thoughts on who to watch in the space.

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Reese Witherspoon is dabbling in the crypto realm, starting with an Ethereum (ETH) purchase and now her first NFTs. On the latter front, she’s getting help from Snoop Dogg, a rapper and entertainer who just claimed that he’s very involved in the NFT movement.

“Just bought my first NFTs!” tweeted Witherspoon on Monday. “I’m gaining a lot of knowledge. I’d love to hear about inspiring women who are developing #NFTs. Chat with me on #cryptotwitter.” She didn’t specify which NFTs she bought. In early September, Witherspoon tweeted about purchasing her first ETH, and she sought guidance from Crypto Twitter in both situations.

Snoop has identified himself as a dedicated NFT collector under the moniker Cozomo de’ Medici, with a collection valued at more than $17 million as of this writing (per DappRadar). As his Cozomo Twitter account shows, he’s well-versed in the scene and was ready with a recommendation for Witherspoon.

Snoop advised Witherspoon contact Priyanka Desai, the chief of operations at OpenLaw and an NFT-collecting DAO Flamingo DAO member, in a quote-tweet.

Snoop’s Cozomo de’ Medici pseudonym tweeted, “May I kindly recommend a conversation with @PriDesai, one of the most influential women in NFT, who can then connect you with the most incredible female artists, collectors, and innovators in our world,”

Snoop’s tweet has elicited no response from Witherspoon. Still, she did enjoy several other responses from the Crypto Twitter community, including a couple about the World of Women NFT initiative. She also liked tweets from Stoner Cats, the NFT-funded animated project co-created by actress Mila Kunis, and one from someone who said if she bought a Deadfellaz NFT, they would get a “Reese” tattoo.

In late September, Snoop Dogg unveiled his Cozomo de’ Medici NFT-collecting identity, as well as cooperation with The Sandbox, an upcoming NFT-based metaverse game.

He also uses a CryptoPunks NFT as his Twitter avatar, and he’s just purchased more high-value Ethereum NFTs, including a $3.9 million piece from XCOPY and an undisclosed stake (a “large portion,” according to the broker) of an Art Blocks “Fidenza” NFT valued at 2,500 ETH ($8.7 million).

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NFT

Sales of NFT Frenzy Surpass $10 Billion in the Third Quarter, while AXS Sets a New High

In the third quarter of 2021, a record number of nonfungible tokens (NFT) were sold, and the frenzy shows no signs of slowing down.

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According to data from analytics websites, more than $10.7 billion worth of NFTs were sold between July and September.

Over the last three months, digital art, memes, gaming products, and collectibles have sold like hotcakes, garnering attention from Reuters.

According to the report, which cited DappRadar data, the massive third-quarter amount was up from $1.3 billion in Q2 and $1.2 billion in Q1. However, the estimates could be substantially higher because off-chain transactions, such as those conducted by auction houses are not included.

NonFungible, which only tracks NFTs on the Ethereum blockchain, estimates that the total volume in 2021 will be $7 billion.

Axies and OpenSea are leading the way

In terms of trade volume, the NFT marketplace OpenSea has dominated. Because most NFTs follow the Ethereum ERC-721 standard, they’ve been responsible for some of the highest transaction costs in recent months.

According to Etherscan, the platform is the top gas generator on Ethereum, accounting for 22.5 percent of the total share in the last 24 hours. Since yesterday, it has generated 2,189 ETH ($7.3 million) in network fees. OpenSea consumes more gas than Uniswap and Tether combined.

According to DappRadar, OpenSea has handled $2.75 billion in NFT sales in the last 30 days.

According to NonFungible, more than half of the NFTs sold during the period were between $101 and $1,000, with roughly 20% in the $1,001 to $10,000 range.

Art Blocks, an NFT project based in the United States that sells algorithmically generated digital artworks, had a strong quarter. According to CryptoSlam, the Axie Infinity “play-to-earn” metaverse has been the greatest seller of NFTs to far, with over $2.2 billion sold.

According to the NFT ranking website, there are currently roughly 2 million Axie owners. According to DappRadar, Axie Infinity made $776 million in Q3 revenue.

AXS is pushed to ATH by NFT Fever

Last week, the gambling platform introduced staking incentives for its native AXS tokens, causing the price to skyrocket to an all-time high of $156 on Oct. 4.

According to CoinGecko, AXS was trading at $137 at the time of writing, up 115 percent in the last seven days and 825 percent in the previous three months.

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NFT

The Granddaughter of Warren Buffett Is Interested in Ethereum and NFTs

Nicole Buffett has become a supporter of the NFT, despite her grandfather’s skepticism.

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Nicole Buffett, Warren Buffett’s granddaughter, recently told Institutional Investor that her collection of non-fungible tokens had nearly sold out in just a few months.

While competitors like Cardano and Solana aim to threaten Ethereum’s dominance in the NFT market, the progeny of the great business magnate claims that Ether is the currency of the NFT field.

Buffett claims that she only accepts the dollar for physical art:

“I’ll assist folks in getting set up so they can buy paintings on the blockchain, but the NFT space’s currency is Ethereum. Physicals are still paid in dollars.”

Warren Buffett is regarded as one of the most outspoken cryptocurrency skeptics, referring to Bitcoin as “rat poison squared.”

His granddaughter says that investing in art is similar to stock or bond investing:

“When my grandfather examines something, he asks, ‘Does it have integrity? Does it have a long-term value? Can you tell me what the components are and how you’d break them down?’ … Art is a lot like that.”

Buffett says she wants her NFTs to remain inexpensive in terms of price.

Before the deal, most of Buffett’s customers are unaware of her ties to one of America’s wealthiest families.

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