TrendsVC PRO 0076 – Fractional Ownership

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After eight years, Facebook was finally made public. They also have dual-Class shares. There’s not much overlap between users and decision makers.

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TrendsVC PRO 0076 – Fractional Ownership

Why it Matters
High-Quality assets are more valuable than others.-Average returns

 Problem
Most of us can’t afford to buy fine art, an entire commercial building or billion-dollar company.

 Solution
Fractionalization democratizes ownership.

Don’t have millions for a Rembrandt or Monaco condo?

No problem. You can buy shares instead.

 Players
Platforms

Fractional.art • Buy, sell and mint fractions of NFTs.
Royal • Buy ownership in songs directly from artists.
Republic • Invest in startups, real estate and crypto projects.
FranShares • Earn cash flow from franchises without operating.
Otis • Trade shares of collectibles, NFTs and art.
Pacasso • Buy shares in a second home.
Tokenized Assets

House of Tiara • A CryptoPunk bought by Crypto Cookout.
ConstitutionDAO • An attempt to buy a copy of the US Constitution.
CryptoPunk #7171 • A fractionalized hoodie punk.
Trippy Apedog • A pair of NFTs from BAYC and BAKC.
Stay Free • An Edward Snowden NFT bought for 2,224 ETH by PleasrDAO.
DAOs

WhaleShark • DAO with a token backed by NFTs.
Crypto Cookout • A group that pooled funds to buy several CryptoPunks.
PleasrDAO • The group behind iconic NFTs purchases.
CityDAO • An experiment in decentralized land ownership.

 Predictions
Fractionally-Owned networks will become more popular. Sharing ownership can be an acquisition or retention strategy. See Chris Dixon’s Why Decentralization Matters.
NFT projects with a small supply (say 10,000 pieces) will have millions upon millions of owners. CryptoPunk #7171 was an early example, with 700+ owners (including mine).
NFT indices will be a popular method to reduce volatility and increase diversification. Fractional Vaults can contain single items or collections. Opportunities
Look into high-Quality, tokenized assets See FractionalRally, PartyBid and PartyBid
You can create your own protocols. See ENS and Mirror.
Part ownership with your audience 3LAU members own 50% of streaming rights “Worst Case.” Lyrah shows you what the future might look like in terms of contracts.
Tokenize high-High quality assets Fractional It has been a “Curator’s Fee” To reward the initial owners. Risques
High Valuations • Keep an eye on fundamentals and valuations. The prices of shares (such as $1 per Share) are arbitrary. What’s the valuation?
Illiquidity • How will you get paid back? Is there an alternative market for your shares Do you need to wait until an acquisition is made? Learn about liquidity events.

 Key Lessons
Fractionalization allows for greater access to high quality assets and makes diversification easier.
Fractionalization increases liquidity and boosts value. Check out the liquidity premiums.

 Haters
“Facebook is a public company. It’s technically a user-owned network.”

After 8 years, Facebook went public. They also have dual-Class shares. There’s not much overlap between users and decision makers.

“PFPs should not be fractionalized. If they are, who gets bragging rights?”

The final decision will be made by social consensus. To indicate fractional ownership, some add party hats for NFTs.

“This report is too focused on web3.”

In previous reports, we looked at traditional assets. See Equity Crowdfunding.

 Links
What should I do about fractional ownership? • The tweet behind this report.
From MakerDAO and NBA Top Shots to Fractionalizing NFTs • On the past and future of DeFi and NFTs.
Farmland and Rural Opportunities • On platforms fractionalizing farmland.

 Similar Reports
Equity Crowdfunding • Fractionalization of non-web3 assets.
NFTs • A closer look at NFTs.
DAOs • DAOs are vehicles for financial, human and cultural capital formation.
Alternative Assets • Other long-Tail asset classes
Crowdsourcing • See how information, effort and innovation are being crowdsourced.

 Thank you
Stewart Townsend, Wyatt Cavalier (Alternative Assets Club), Wyatt Cavalier (“Alternative Assets Club”), Vajresh Balaji(SuperLayer Labs), Yartykim (A4E), Sean Hua and Aadil Razvi (“Demand Curve”), Rick Segal (“CRAAG Angel Group”) This report was a lot of fun.

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Trends PRO #0076 — Fractional Ownership More information is available here

What you’ll get:

20 Platforms (233% more)
10 Tokenized Assets (100% Additional)
8 DAOs (100% more)
6 Predictions (plus 100% More)
8 Opportunities (100% More)
4 Risks (150% more)
5 Key Lessons (153% More)
10 Links (233% more)
10-Audio episode of a minute with exclusive Fractional Ownership Stories, insights, opportunities.
With Trends Pro you’ll learn:

(Pro) What engineer was 33 when he retired?
( Pro) What 5 kids did you have to FIRE with?
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( Pro) The 4% rule is being questioned by some.
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