@thierryent
NFT fractional ownership platforms divide high-value assets into tradable tokens, enhancing liquidity by lowering entry barriers. Liquidity dynamics depend on factors like tokenization structure (ERC-20 vs. custom standards), platform fees, and secondary market activity. High fragmentation can dilute value if demand is insufficient, while low fragmentation risks centralization. Automated market makers (AMMs) integrated into platforms stabilize prices by providing continuous liquidity. However, regulatory uncertainty around securities laws complicates operations. Success hinges on balancing fractionalization granularity with market demand, ensuring tokens remain attractive to both retail and institutional investors. As the sector matures, hybrid models combining fractionalization with staking rewards may emerge.
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