Exnetwork Incubatee Highlight: NFracTion
At the start of 2021, the NFT hype skyrocketed. This was the first time non crypto natives have been exposed in a significant way. NBA Topshots was a clear influencer in making this happen. We can say that this was the 1.0 version of things. Within the NFT space, there are still tons of innovation to be made. One of the most common ones is fractionalizing NFTs. While there are many projects out there focused on fractionalizing NFTs, NFracTion approaches the problem in a unique and fun way and this is the reason why we at Exnetwork decided to invest and incubate the project.
NFraction offers a 2 main selling points. First is its unique NFT Fractionalizer and second is its cross-chain NFT Marketplace.
1. NFT Fractionalizer Utilizing Puzzle Pieces.
The project puts a unique twist to NFT fractionalization. While most fractionalizing happens by minting numbers to the parts, NFraction turns the parts into puzzle pieces. We like this because it is visually stimulating and it is easier for non crypto natives to understand and see the value. Last but not the least, pieces are sold in puzzles packs which generate more revenue. This is similar to Pokemon cards or NBA collectible cards where you buy a pack but don’t really know whats inside. So collectors will tend to spend more and will enjoy completing pieces. As for the creators, they generate more revenues as well, further incentivizing them.
2. Cross Chain NFT Marketplace
Right now, almost all NFTs are still on the Ethereum Network. We at Exnetwork believe that the future will not be single chain but rather a multichain or cross chain one. This is evident from our investment portfolio. havingin invested in BSC, Solana, Polkadot and Avalanche projects. Since NFTs are one of the main sectors of Crypto along with DeFi, it is clear to us that NFTs will operate across different blockchains as well in the future. NFracTion has built a cross chain marketplace. It will support BSC initially. Solana is the next blockchain to be integrated. These two are the new upcomers in Layer 1 blockchain. It is still early and marketshare for NFT marketplaces is still up for grabs.
NFTs has been one of the fastest growing sectors in the crypto space. Despite this, we are still just in the first inning. Just as Google was not the first search engine, and Apple not the first cellphone product, huge sectors like this give very little first mover advantage. What is most important is ease of use (to get market share) and innovation. We see NFracTion focusing and leading in these two areas and these are the main reasons we have invested in them.