How Fractional Ownership Is Bringing Iconic Real-World Objects To The Public
06 Junio 2022 - 11:53AM
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Fractional ownership has become a hot topic in the decentralized
world. Now that many industries have integrated blockchain
technology, which are the latest industries jumping aboard the
trend of fractionalization? How can it improve accessibility to the
market of high-end collectibles? Read on to find out. Driven by
fast-paced blockchain technology adoption, the concept of
fractional ownership has had a recent increase in its usage and
familiarity on the world scene. As a result, what was once an idea
understood mainly by those operating in the stock market is now
part of the vernacular of newcomers to the world of investments and
crypto. The world has just begun getting used to the idea of
ownership of digital assets via NFTs, but typically that ownership
would pertain to only one buyer at a time. Last March, history was
made when a Beeple NFT was sold for $69 million to collector
MetaKoven. While attention was drawn to the price tag, it was also
interesting that MetaKoven had bought several of Beeple’s works
before the record-breaking piece, only to divide the ownership into
blockchain-based tokens then and sell them to the public. It was a
prime example of fractionalizing a digital asset, and we’re about
to see a lot more of these types of investment opportunities on
offer in the years to come. In addition to NFTs, the aviation space
is also making waves by using fractional ownership to offer
on-demand flight services to multiple investors of unique luxury
aircraft. For example, VoltAero, a French hybrid-electric aircraft
developer, has launched a fractional ownership program for its
five-seat Cassio 330, eventually followed by two follow-on models
with more seating space. Jean Botti, former Airbus chief technology
officer, commented, “Cassio will open a new era of highly
sustainable air transportation in Europe with on-demand flight
services for those who join our fractional share ownership.” The
critical aspect of NFTs is their ability to be used to establish
authenticity and the transference of rights. Therefore, there’s a
window of opportunity for entrepreneurs looking for new industries
to innovate in through the capacity of NFTs and blockchain tech.
For example, traditional and digital real estate in the Metaverse
has been some of the main spaces allowing NFTs to fuel the
incorporation of fractional ownership in the modern world. Right
now, deeds serve the function of representing ownership of property
in the real world. However, now that NFTs can also be used to
represent ownership of real-life properties, there’s the potential
for NFTs to bypass trusted intermediaries in property purchases,
such as title insurance companies, escrow holders, and lawyers. In
addition, since investing in real estate can require substantial
funding, some entrepreneurs use NFTs and crypto to raise capital
for their projects. For example, in 2018, the St. Regis Aspen
Resort sold an 18.9% ownership stake in the hotel through token
sales of “Aspen Coins.”, which could be bought with U.S. dollars,
Bitcoin, or Ethereum. A new alternative asset exchange has recently
entered the Web3 stage – Jupiter Exchange. By digitizing and
fractionalizing iconic real-world assets on the blockchain, the
platform allows passionate collectors to own a piece of objects
previously reserved only for a select few. What’s more, Jupiter
differentiates itself from other alternative asset exchanges by
adding liquidity to the selected assets and creating a much larger
pool of sellers and buyers. Jupiter Marketplace creates iconic
products as single NFTs, which then are fractionalized into a
number of ownership tokens of equal worth. Once the ownership
tokens are sold, they can be traded on Jupiter Exchange with a
real-time pricing model. Whether one is a passionate collector or a
retail investor looking to diversify their portfolio, Jupiter
Exchange is the platform to watch. Having recently raised $5
million in seed funding, Jupiter Exchange is set to launch very
soon. Collecting comes with several challenges, and Jupiter
Exchange aims to reduce the collectors’ pain points. Even
high-profile individuals like NFT/Pokémon card collector Logan Paul
ran into a scam after paying $3.5 million on what he thought was a
“sealed & authenticated box of 1st Edition Pokémon cards”, only
to find that was not the case. Interestingly, the box had been
validated as authentic by the Baseball Card Exchange. Bolillo Lajan
San, the well-known and respected card collector who sold him the
box, also believed it was legitimate – clearly showing the need for
NFTs in the world of both physical and digital collectibles.
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