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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

At a London event, an NFT vending machine will increase accessibility to digital art

The NFT vending machine at this year’s NFT.London event will give its profits to a good cause.

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The first-ever physical nonfungible token (NFT) vending machine will be on display at this year’s NFT.London conference, which is set for November 2-4.

The NFT platform aims to give anyone who wish to start buying and trading digital assets a simple and accessible way to do so without requiring them to have a thorough understanding of the Web3 sector. Users won’t need to have a digital wallet to buy an NFT from the vending machine.

Users must choose one of the shown envelopes before entering the code to acquire an NFT from the myNFT vending machine. After making their purchase, users can scan the QR code on the envelope to access an invitation to create a myNFT account, which includes an NFT wallet where they can store their NFT.

“The most convenient method to buy anything is through a vending machine, so we’re shattering the impression that buying an NFT is difficult with this campaign,” said Hugo Mcdonaugh, CEO of myNFT.

The first collection of contributed NFTs from myNFT, which includes names like Dr. Who Worlds Apart, Thunderbirds, and Delft Blue Night Watch, will be available for purchase by interested participants.

The actual NFT vending machine will be situated outside the Queen Elizabeth II Centre, Westminster, London, which is where the NFT.London conference will take place.

The revenue from the NFT vending machine will go to two charities: Roald Dahl’s Marvellous Children’s Charity, which provides specialized nurses to seriously ill children, and Giveth, a blockchain-based philanthropic community that supports public goods, services, and education in developing countries.

The Solana, California-based NFT marketplace Neon introduced a 24-hour NFT vending machine in the financial sector of New York City in February, according to Cointelegraph. This machine took credit and debit card payments. However, people complained that neither the NFT vending machine nor the NFT performed as promised after a week had passed after its introduction.

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NFT

Could this trademark application indicate that PayPal is developing an NFT market? 

A trademark application for blockchain and cryptocurrency technology has been submitted by PayPal. Some claim that the file has something to do with Web3 and the metaverse, although it may be tied to an NFT marketplace.

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A recent trademark application by PayPal has been found, and it suggests the development of a service pertaining to several facets of blockchain technology. The file, which was made on October 18, makes a notable allusion to the potential introduction of a non-fungible token (NFT) market.

For its logo, PayPal submitted two trademark applications. The first one concerns “downloadable software” for cryptocurrency trading and storage. The second discusses cryptocurrency-related payment processing services.

Although users may currently buy cryptocurrencies on PayPal’s platform, this filing suggests that there may be more to come. The concept of assets is substantially broader in the filing’s terminology. Mike Kondoudis, a trademark lawyer licensed by the USPTO, claimed on Twitter that this filing relates to NFTs and the metaverse.

Although there is no proof to support this, it would not be shocking if it were true. The finance business would be adding its name to a lengthy list of businesses that are starting to make inroads into the Web3 and metaverse spaces.

PayPal is investing more in cryptocurrency.
Over the past two years, PayPal has intensified its focus on cryptocurrencies. First, the company made a huge announcement for the industry by saying that consumers would be able to purchase cryptocurrency on its platform.

However, it didn’t start enabling users to move those funds into wallets outside of the network until recently. It indicated that it would roll out additional crypto-related features in the latter part of last year. One of those additions might be an NFT marketplace.

It teamed up with Coinbase’s TRUST network more recently. This was viewed by many as an endorsement of the sector. The TRUST network upholds consumer security and privacy while adhering to the banking industry’s Travel Rule.

Increased Criticism of Payment Giant
Additionally, PayPal has been in the spotlight for all the incorrect reasons. The business has recently come under fire for a contentious policy that penalized users for disseminating false information. Later, it claimed that false information was released with the amended policy. Crypto aficionados, however, were eager to point to this as evidence of the value of decentralization.

PayPal established a blockchain and cryptocurrency advisory committee earlier this year. According to the company’s management, working with governments is essential to overcoming obstacles and seizing possibilities.

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NFT

Seba Bank, a cryptocurrency company, aims to store valuable NFTs

Seba Bank, a cryptocurrency company, has launched its first NFT service, a blue-chip NFT-specific institutional-grade, certified, and independently audited hot and cold storage custody product.

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The launch comes in response to requests from customers to keep their NFTs with the bank alongside other crypto assets, such as the already-approved Bored Ape Yacht Club, Cryptopunk, and Clone X NFTs. The bank stated that new collections would be added based on customer demand.

With its newest offering, Seba Bank seeks to entice investors who view NFTs as an asset class and crypto natives. Not your keys, not your bitcoin is a well-known phrase in the crypto sphere, and adherents of this maxim could object to having their Apes or Punks stored with a third-party custodian.

Urs Bernegger, co-head of markets and investment solutions at Seba Bank, however, highlights a growing group of NFT holders who are more at ease handing up their NFTs and private keys to a company.

They don’t want the key because they aren’t even aware of how to handle and store it. He claimed that they’re more concerned with damaging the key than giving it to a bank.

It’s a significant issue. Between 2.3 million and 3.7 million bitcoins, according to Chainalysis, are trapped in inaccessible wallets. Numerous accounts of people have lost millions owing to losing private keys, including Russian officials, students, and engineers. Families have also been prevented from accessing substantial quantities of money following sudden deaths in which wallet owners had not disclosed their private keys.

Bernegger asserts institutional custody can be advantageous for native crypto users as well. There has been an increase in businesses providing services that employ NFTs as collateral for conventional banking services like loans.

Seba Bank is thinking about implementing these features in the future. Based in the crypto-friendly Swiss town of Zug, the four-year-old bank already backs several investing, credit, lending, and staking options for cryptocurrencies and might extend them to NFTs.

“Instead of traveling to the market, for instance, we could create a club for collectors and assist them in finding other collectors. There are a few things we have in mind, but we laid the groundwork by storing NFTs securely at first, “explained he.

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