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What Is ‘Fractionalization’ of an NFT?

Fractionalization is the process of dividing a single, high-value Non-Fungible Token (NFT) into multiple fungible tokens. This allows multiple investors to own a small share of the original, expensive NFT.

It increases liquidity, lowers the barrier to entry for investors, and enables price discovery. The fractionalized tokens are typically governed by a smart contract that holds the original NFT.

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