Irreplaceable tokens have taken the crypto world by storm in the past few months(Nftfy) . As evidenced by the wave of record-breaking NFT sales, the surge in search interest, and the exponential escalation in NFT trading volume.
Unlike most traditional cryptocurrencies that can be subdivided, you can only own the entire NFT or nothing at all. However, this will soon change with the introduction of Nftfy – a platform that uses a novel segmentation process to make NFT more liquid and accessible.
What is Nftfy (NFTFY)?
Nftfy is a new, blockchain-based platform designed to address some of the inefficiencies in the NFT market. In particular, it allows anyone to easily split NFTs into fully secured ERC-20 tokens and sell them through the permissionless marketplace.
The foundation aims to democratize ownership of NFTs by ensuring that high-priced NFTs are securely shared among multiple owners through a traceable and reversible sharding process. These NFT shards are then used, traded, or stored as replaceable NFT shards throughout the decentralized financial ecosystem.
The project was launched in April 2020 after members of the Brazilian research firm BlockchainBH participated in the Hack money ETH Global Hackathon and recognized the unmet need for more accessible NFT with higher utility.
Leonardo Carvalho is the co-founder and CEO of Nftfy. He has been a successful electronics engineer working full-time in the crypto space since joining BlockchainBH as an innovation leader in 2018. Other prominent members of Nftfy include Rodrigo Ferreria – a renowned innovative contract expert with a Ph.D. in computer science from Yale University, and André Salles – a lawyer and professor of blockchain and crypto-economics.
How does Nftfy work?
As mentioned earlier, Nftfy allows users to create their own NFT shards based on the ERC-20 standard. The process is straightforward and enables any NFT to the holder who wishes to split up the token ownership. In summary, there are three main processes that users need to consider when using Nftfy:
– segment: The user selects the NFT (or potential NFT category) they want to segment, chooses an exit price, and selects the cryptocurrency used for the exit. After completion, the NFT remains locked in the smart contract, and ERC-20 standard tokens are issued (i.e., NFT shards). Users can then sell them through a private sale or IDO, using the balancer’s LBP.
– buyback: If someone wants to buy the entire NFT, they will have to pay the exit price set by the original NFT owner. This amount can be paid in shards or cryptocurrency determined during the sharding. Users who already own multiple bits can deduct from the exit price to reduce the end cost.
Prize requirement: The funds used to purchase NFT are locked in a safe. Holders of the remaining shards can access this vault for a proportional share of the proceeds. This ensures that they will be well rewarded for their initial investment.
Use of NFT “Every day: Beeple’s The First 5,000 Days, “which recently sold for $ 69 million. Owners can take the token and divide it into 1 million ERC-20 tokens, each token for $ 100 (a total of $ 100 million). The exit price can be set at $ 200 million, which means that every NFT shard on a sale is exchanged for $ 200 – a 100% profit is made.
Each of these processes is entirely decentralized, while all shard tokens are supported by an underlying NFT – which can be checked on-chain at any time.
NFTFY is used for many purposes within the Nftfy ecosystem and is designed to incentivize holders and increase the liquidity of ERC-20 shards. Users need NFTFY tokens to maximize the value of the platform. NFTFY holders can use their tokens to participate in yield farming, airdrops, and various liquidity pools and earn NFT shards and other rewards.
The NFTFY token starts in May 2021, after IDO on Poolz and Liquidity Bootstrapping Pool (LBP) on Balancer.
What makes Nftfy unique?
Nftfy’s mission is to solve an important problem in the NFT market: lack of liquidity. Often, when users buy NFTs as an investment, they worry about finding someone to buy back the investment – which can be a challenge for high-priced NFTs.
Nftfy addresses the issue by creating a more fluid environment for NFT creators (including artists, entrepreneurs, developers) and investors (including collectors and dealers) by reducing NFT’s barriers to ownership through a unique segmentation process.
Nftfy helps hedge against volatility risk by ensuring that NFT shard holders are less susceptible to short-term price fluctuations as their tokens are fully liquid. Users can trade tokens at any time on Nftfy’s decentralized marketplace or external platforms. Long-term holders, meanwhile, have a better chance of getting the maximum value for their shard, as anyone can buy tokens at the exit price at any time – NFTs are available until they are sold.
Since fractional tokens are fully fungible and based on the ERC-20 standard, holders can use their tokens for other activities in the vast DeFi space – such as liquidity mining, available collateral, or arbitrage.
As a decentralized, permissive, and trustworthy platform, Nftfy uses smart contracts to ensure that holder of fractions of tokens can be assured that the underlying NFT cannot be tampered with or withdrawn by the original owner.
According to Coinmarketcap