The ‘Feisty Doge’ non-fungible token (NFT) was briefly the most valuable NFT ever, valued at over US$100 million. The owner of the NFT allowed the public to buy part ownership of the digital art piece, pushing the price to record heights.
The Nine-Figure NFT
The Feisty Dog NFT recently became but is also no longer the world’s highest valued NFT. ‘How does this happen?’, one might ask. The owner of the NFT announced that it would be fractionalised, allowing the public to buy a share of the 100 billion tokens made available.
By fractionalising NFTs, an interested party can gain exposure without the large upfront cost. As the news spread that there was a possibility to buy into the acclaimed NFT, investors jumped in. The price of the fractionalised asset shot up 721 percent, pushing the estimated value to over US$100 million.
The tokens trading under the ticker NFD and can be bought and sold on SushiSwap or Uniswap like any other token. Users with just a few dollars can buy a piece of this NFT (in the form of an ERC-20 token), with hopes that the implied value will rise with time, or that someone will make a fixed price offer for the entire NFT and payout all the holders in ETH.
Based on the total NFD token supply sitting at 100 billion, the token’s price briefly gave the NFT a valuation of US$110 million, making it the most valuable NFT ever, overtaking Beeple’s “Everydays: The First 5,000 Days.” that sold for US$69 million.
The Feisty Doge picture is part of a shoot with the Japanese Shiba Inu Kabosu, who rose to Internet fame as the dog behind the Doge meme. It was sold as an NFT back in June, fetching a total of US$43,279. With its price cooling down, the NFT is now hovering around US$50 million
While those who bought in early enjoy their gains, some have been critical of @Cryptopathic’s project. Twitter user, @0xShual, called the Feisty Doge fractions a “scam,” highlighting on-chain data that shows @Cryptopathic removing liquidity from NFD/ETH trading pairs, taking profits in the process.
While removing liquidity is not technically a scam, doing so has previously drawn the wrath of the crypto community. Also, the opportunity for a rug pull becomes apparent when 90% of tokens are held in just two wallets.
Fractionalised NFTs the Next Big Thing?
Unlike many tokens, there’s no underlying protocol, team, mission, or revenue-producing product when it comes to most fractionalised NFTs. People who buy are purely speculating on what the cultural value of the underlying image will be down the line.
NFTs are one of the more recent innovations in blockchain technology with power to change the arts and culture landscape. But since the technology is in its infancy, there are lessons to be learnt and new methods of utilising the technology to be understood.
In a related story, a new Aussie NFT project suffered from errors on launch and will reimburse affected users.
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