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Fractionalized NFTs Coming to Cardano

Thu, 23/09/2021 - 20:58
Fracada will enable fractionalized NFTs on Cardano
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Fractionalized NFTs Coming to Cardano
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Product-based blockchain startup dcSpark has announced a new Cardano-based project called Fracada. Its code will be released on Tuesday.

Fracada will allow turning non-fungible tokens into “fractions” with the help of the Plutus programming language.

Fractionalization has become a new trend in the NFT sector since it makes it possible for those who can’t afford the whole thing to get a piece of the action.

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In layman’s terms, the process of breaking expensive NFTs into pieces can be compared to splitting up the equity of public companies into a huge number of shares.

However, the owners of F-NFTs shouldn’t expect a return on their investment. Otherwise, token issuers could get in trouble with regulators for not complying with security laws, according to David Carlisle of Ellipti:

Fractionalization starts to raise a number of questions around things like are people participating in the purchase through fractionalization ultimately functioning like an ‘investment syndicate’ where they’re expecting a return on their investment.

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As reported by U.Today, dcSpark also recently started developing an Ethereum Virtual Machine-compatible sidechain on the Cardano blockchain.

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