Starting in 2018, the launch of CryptoKitties, a well-known project in the Ethereum community, was the first appearance of NFT in the blockchain field. Beginning in the second half of 2020, NFT has made a comeback and is widely regarded by the market as the next industry boom in DeFi.
As predicted, NFT became famous for Uniswap selling a pair of socks for US$160,000, the founder of Twitter selling for US$2.5 million for five words, and crypto artist Beeple receiving a bid of US$9.75 million for Christie’s NFT works in early 2021.
In March 2021, the total transaction volume of the encrypted art platform has exceeded 200 million US dollars, which hit a record high.
According to Google data, NFT-related searches have now surpassed DeFi and Polkadot, and peaked at the end of February, which has also attracted strong attention from a wave of outsiders who tried to join the queue of this emerging product NFT. The well-known American rapper Soulja Boy, who has 5 million followers on Twitter, released his own NFT; Mark Cuban, the owner of the NBA championship team Dallas Mavericks, released the NFT; superstar Kevin Durant forwarded about NFT games on social media; football giants Barcelona, AC Milan and other top clubs also have their own NFT.
Fragmented NFT solution
The boom in the market has spawned many NFT projects, everyone has continued to explore NFT. For example, Aavegotchi, NFTX, and NFTFi’s solution is to fragment the entire NFT collection, and put these fragments in a fragmented ownership token, so that allow users who lack experience to have the industry knowledge of those high-end NFT collectors to a certain extent.
The times make heroes. In the early NFT market, these projects have established their position in the industry very early because of their first-mover advantages, and many have reached a market value of hundreds of millions or even billions of dollars.
Although the fragmented solution lowers the transaction threshold and realizes the demand of the asset and its value and the holders want price discovery. However, the penetration rate of these projects for buying and selling NFT assets is still less than 2%. It is not that the value of these projects is overestimated, but that their fragmented solutions are not yet the market’s optimal solution.
Fragmentation solutions, there are still many problems to be solved urgently: 1. Fragmentation requires the NFT assets to be taken in order to be fragmented; 2. How to ensure the security of fragmented NFT assets? 3. Due to the technical reason, NFT participants have never understood the fragmentation of NFT, and do not know how to participate.
In addition, the securitization of NFT assets also has legal risks.
NFT Fragmentation is easy to be regarded as securities by the SEC
Due to the products after segmentation are derivatives of the underlying assets, investors must be aware of the regulatory risks behind this move. Chris Donovan, head of legal affairs at Outlier Ventures, a British fund that invests in NFTs, once tweeted that NFT generally do not constitute securities (in the US or the UK) … But in some cases, NFTs may represent securities, such as: Fragmented NFT that includes licensing fees.”
Hester Pierce, a commissioner of the U.S. Securities and Exchange Commission (SEC), the competent authority, issued a similar warning last month.
NFTB’s INO solution
The NFTB (full name: NFTBomb, Chinese name: 元气弹) project is currently focusing on building a mapping channel between NFT and the real world, becoming the infrastructure for blockchain technology to map the real world. By building standardized protocols to connect NFT assets in all blockchain fields so that makes NFT assets can circulate freely. And while expanding its own influence, it will create a more complete ecological environment for all NFT assets and become the infrastructure for mapping the NFT to the real world, thereby realizing the project vision.
NFTB proposed the INO protocol, which is a fragmented Pro version. INO can greatly reduce the threshold for NFT participation, and 1USDT can also participate in the crowd auction of masterpieces. So how does it work?
NFTB builds an open INO platform via the protocol layer, allowing NFT assets to be energized and circulated, and to obtain a value definition based on the free market. Anyone can lock an NFT asset on the chain and initiate an INO contract on NFTBomb. Users participating in INO can participate in crowd auctions by sending ETH to the contract. After the successfully completing INO contract, the ownership of fragmentation will be obtained according to the proportion, user will also get NFTB incentives proportionally at the same time.
What’s more interesting is that when the contract is not successful, the user’s fragment will exist in the form of fragmentation assets, which can be freely circulated and sold in the secondary market, and can be used for income operations such as pledge mining.
To put it simply, INO solves the prerequisite that the fragmentation process must have. You don’t need to own a target NFT and can even directly target the NFT on the chain and initiate an INO contract. This chain is publicly visible, and people from all over the world can participate in your INO contract and work with you to fund this NFT asset.
After this operation of the INO protocol, the project penetration rate will rise from 2% before to 100%, and due to the open and fair nature of the chain, it will ensure the security and transparency of participating in NFT purchases. If the market value is estimated from the business volume, NFTB will be about tens of billions of dollars in scale.
NFTB’s INO protocol is simple and highly operable, allowing ordinary people to easily participate in NFT asset transactions. There is no securities risk in the INO agreement, which is another historical process after the fragmentation of NFT development.
I believe that in the future, NFT transactions will gradually become rigidly needed like cryptocurrency transactions. The INO protocol solution proposed by NFTB is expected to become a market breakthrough, and it is also expected to surpass the former in the NFT field!
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