Fractionalized NFTs allow ownership of a single non-fungible token (NFT) to be split into smaller, tradable shares. This process makes high-value NFTs more accessible to a broader range of investors by lowering the barrier to entry.For example, an artwork NFT worth $100,000 can be fractionalized into 1,000 separate tokens, each representing 0.1% of the original NFT’s ownership. This enables multiple people to invest in and benefit from the asset without having to purchase the entire item. Fractionalization can enhance liquidity, as these smaller shares can be bought and sold more easily on various marketplaces. This also opens opportunities for collective ownership and investment strategies, enabling fans or collectors to participate in a shared asset.While fractionalized NFTs offer exciting possibilities for democratizing access to valuable assets, they also come with risks, including regulatory challenges and complexities related to how underlying ownership rights are managed.