If you thought the NFT mania was nutty before….. As Matthew Levine put it:
“Another model is that the value in an NFT comes from a concept, and the value in a fractionalized NFT comes from, like, two concepts. “Take an object / Do something to it / Do something else to it,” Jasper Johns wrote. The essential transaction in an NFT is:
Seller: I will sell you a unique pointer to an image of a dog for $4 million.
Buyer: Ahahaha good one, that joke is worth $4 million to me, here you go.
In a fractionalized NFT you have a slightly richer context:
Owner/securitizer: I bought this unique pointer to an image of a dog for $4 million.
The public: Ahahaha good one, congrats, money well spent.
Owner/securitizer: Also I will sell fractional ownership interests in it for like $225 million.
The public: Ahahaha another good one, that joke is worth $225 million to us, here you go.
It’s two jokes so it’s worth 55 times as much. I don’t know!”
The fractionalized asset would go on to double in value to about $500 million before subsiding.
Note – article may be paywalled, open in incognito mode worked for me.