The high price and the limited number of high-value or popular NFTs pose liquidity challenges and make them unattainable for the average trader. To make the most popular NFTs more accessible and available on the market, the global cryptocurrency exchange Gate.io has launched Fraction Tokens.
Fraction Tokens on Gate.io allows traders to buy and sell ERC-20 tokens pegged to an underlying NFT asset, enabling traders to better access and trade NFTs from the most popular collections. Users can easily buy and sell Faction Tokens on Gate.io’s spot trading market, greatly improving the liquidity of the NFT market.
Following the success of its first launch IPUNKS, Gate.io followed up with the release of IBAYC fraction tokens, representing the Bored Ape Yacht Club collection. Created by Yuga Labs, Bored Ape Yacht Club is the most iconic NFT collection and has transcended the crypto space into pop culture. On Gate.io, the collection will be tradable as a fractional token under the IBAYC symbol and paired with USDT.
What are NFT Fraction Tokens on Gate.io?
Gate.io’s Fraction Tokens are tradable in the same manner as assets on the spot market, with the ability to place buy and sell orders of various quantities, significantly reducing the capital needed to invest in high-value collections and enabling a much more liquid NFT market. For example, Gate.io launched the IBAYC fraction token, which are tradeable ERC-20 tokens equivalent to 1/10,000 share of a specific NFT from the Bored Ape Yacht Club collections in the Gate NFT library.
NFT ownership is obtainable with fraction tokens, such as IPUNKS and IBAYC, as they are tradable at a fixed rate with Fractional NFTs on Gate.io, which are assets that provide the holder with a share of ownership of an underlying NFT asset proportional to the number of fractions held. So traders can obtain shares of a high-value NFT at a lower cost by acquiring either Fraction Tokens or Fractional NFTs themselves.
Gate.io simplifies and liquefies the NFT market
Aside from reducing the entry price for popular NFTs, Gate.io makes it easier to manage trading NFTs on the market by streamlining the process to resemble spot trading. In addition, users benefit from the high liquidity found on Gate.io’s markets and the free transfer between NFT faction tokens and fractional NFTs.
Dr. Lin Han, Founder and CEO of Gate.io, said, “As one of the first exchanges to fully support fractional NFTs, we continue to upgrade our trading products to provide users with diversified NFT investment opportunities. With this new launch, any NFT enthusiast, regardless of portfolio size, can easily enter the market and become a collector or trader of high-value NFTs.”