This article is written by IX Swap Senior Legal Counsel Derrick Leong.
CryptoPunks, Doodles, BAYC, Moonbirds.
These are just some of the prime suspects responsible for the NFT boom of 2021, which saw the global NFT market balloon to over USD$10 million.
Beeple’s Everydays: The First 5000 Days itself went for an eye-watering USD$69 million. Such was the hype of NFTs, a concept that was created only several years prior.
Inevitably, the NFT phenomenon caught the attention of regulators around the world who were trying to catch up with this novel asset class that surfaced from relative obscurity.
Particularly, there was concern about how the features of some of these NFTs may characterize them as securities.
And so, the warning shots were fired, requiring all in the space to be regulatory compliant. In certain cases, the hammer of enforcement was brought down to demonstrate that the regulators meant business.
So, that puts a damper on things for NFT minters and traders alike. Bummer… or maybe not?
Together with our strategic partner InvestaX, we have just the solution. As a licensed entity, InvestaX can assist minters to tokenize and fractionalize the interests in a single NFT into several hundreds or thousands (take your pick) of fractionalized NFTs (F-NFTs).
Why fractionalize? Well, we have seen how high the crazy prices of NFTs are going for. Fractionalization reduces minimum investment amounts and with that, highly sought-after NFTs could come within the grasp of investors operating on smaller budgets, something not previously dreamed of.
And the knock-on effect of smaller investment sizes is that high-value NFTs, which are difficult to sell on, could now be a much more liquid asset, with F-NFTs.
That is where IX Swap comes in. IX Swap’s liquidity pools create an avenue for investors to open up trading opportunities for F-NFTs. Just ask Howey Tez.
Are regulations causing you a migraine? No need to fear, IX Swap is here.
About IX Swap
IX Swap is a next-generation platform that leverages DeFi services backed by regulatory compliance to facilitate safe and convenient issuance, listing, and trading of security tokens and fractionalized NFTs.
By bridging the gap between traditional finance and innovative blockchain-based solutions, IX Swap is paving the way in democratizing access to traditional financial markets that have never been done before.
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Originally published at https://ixswap.io on October 19, 2022.
