Sharding, sharding, sharding, is the name of the game. A collection of 50 CryptoPunks are the latest NFTs to join the fractionalized family. As most of us know, CryptoPunks are now only really accessible to crypto whales, and owning a Punk is out of the question for most NFT enthusiasts. But with this latest collection, which has been fractionalized into millions of tokens, anyone can now own at least a tiny piece and get a taste of being in the prestigious CryptoPunk club.
The fractionalized collection was created on Unic.ly, a protocol to combine, fractionalize and share NFTs. With this specific collection, a total of 250 million fractional shares can be created, called uPUNK tokens. According to a report, at present there are over 80 investors who have created 3.6 million shares, and each share is worth $0.05. This means that the collection has a market cap of $14.4 million.
Investing in fractionalized projects can be risky since it is highly dependent on demand and supply, and how well the project and community around it is managed. For anyone considering to buy shards of this CryptoPunks collection, it is best to first study the traits of the Punks and how valuable they are among the 10,000 Punks.
There’s also been quite a bit of talk lately about whether or not fractionalized NFTs are securities. There’s no clear answer yet, but it could potentially cause people to lose a lot of money. Read a discussion on this matter here, and as always, pick your NFT investments carefully.
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Ivelina is an NFT and Blockchain lover. She has a knack for putting complex concepts into simple words.