Fractional
Fractional ownership of the world’s most sought after NFTs. Fractionality unlocks liquidity and reduces entry costs, so everyone can get in on the action.
Highlights
0 - 1,000%
Asset Class Return•1Y
#8 Rank
In NFTs•30d
Invest from
$1
Overview
Become a partial owner of collectible NFTs you otherwise could not afford. Fractional delivers a unique way to unlock NFT liquidity and provides community access to owning parts of iconic and historic NFTs.
Things to Know
You make money on
Value
Fees
Zero
Min Investment
$1
Payout frequency
Asset sold
Term of investment
Zero
Target Return
Varied
Liquidity
Moderate
Open to
All Investors
Mobile Application
No
Top Perks
Own parts of high-priced NFTs affordably
Get a piece of one-of-a-kind digital art
Invest in trending asset class, budget-friendly
Other ways to invest in NFTs
How you make money
NFTs are stored in vaults on Fractional, and vaults are able to be auctioned off for a value agreed upon by owners of the fractional tokens. An auction is a public sale of a vault and all its contents, which is triggered when someone deposits and offers an amount of ETH greater than or equal to the vault’s reserve price. The individual offering the highest price at the time the auction completes wins the buyout. At auction completion, the NFT will be withdrawn and fractional owners will be able to trade in their tokens for ETH.
How Fractional makes money
Fractional does not currently have any revenue or charge any fees. It is unclear at this time what the platform has planned in regards to future fees or costs.
Is it safe?
Fractional has raised over $8 million through multiple rounds of funding to date.
NFTs have exploded in popularity the last couple years, with the NFT market in 2021 worth an estimated $41 billion. That being said, investing in hard assets will always have volatility risk. There is no guarantee that the NFTs you choose to invest in will actually increase in value over time, and returns could vary drastically.
Established
2021
Country Available
US Only
Assets Managed
n/a
How you’re taxed
Capital Gains
Income Tax
There are two tax considerations to be had when purchasing NFTs:
Buying an NFT using Crypto
When The IRS states that “if you exchange virtual currency held as a capital asset for other property, including for goods or for another virtual currency, you will recognize a capital gain or loss.”
For example - if you purchased a unit of ether for $100 in 2018, it would now be worth around $1,700. If you used that ether unit to buy a $1,700 NFT, you would have to pay tax on the gain of $1,600 as part of the NFT purchase. You would owe the IRS — assuming a top capital gains rate of 20% — a tax of $320. You’re not spending currency, you’re spending an appreciated asset.
Selling an NFT for profit.
Profits earned from the sale of NFTs, the same as crypto, are taxed like stocks (short and long term capital gains). Whenever you sell an NFT, you incur a capital gain or loss. For example, if you bought an NFT for $10,000 of ETH (this is your cost-basis) and then sold it for $15,000 of ETH, you would incur a taxable capital gain of $5,000.
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