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Fractionalized NFTs Coming to Cardano

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Thu, 09/23/2021 - 20:58
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Alex Dovbnya
Fracada will enable fractionalized NFTs on Cardano
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.

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

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.