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Use Case:

NFTs for Art Collectors


Art collectors often spend millions of dollars building up their collections. However, given that these art pieces might remain unsold for decades, the intrinsic monetary value remains “trapped” within them during this time.

As such, art collectors with a large selection of paintings can issue an NIFTIT (a Non-Fungible Token) for each art piece in their collection. After which, they can break this NIFTIT into several pieces, which are known as “Fragments”, and sell a portion thereof to secondary markets and liberate some of the previously underutilised capital.

Current Situation:

Art is an illiquid asset. By its nature, each art piece is unique and therefore priced differently.

It’s difficult to sell a piece without having to put it up for auction at an auction house, which is expensive and very time-consuming. As such, the true value of an art piece often remains unknown, given that they might not be sold for decades. 

Not only that, but the millions of dollars it takes to build an art collection remains “stuck” in the art pieces. For economic purposes, this state of affairs is a deadweight loss incurred by both the collector, who doesn’t benefit economically from owning the art pieces until they sell them, and society, which doesn’t get to utilize those economic resources to develop.

Until recently, there was nothing that could be done about this. But now, technology is allowing us to unleash the inherent economic value trapped within these art pieces.

This is where applications like NIFTIT are useful. As they allow you to take digital proofs of ownership, NIFTITs, and “Fragment” them into thousands, or even millions of pieces. After which, these micro-ownership rights can be utilized in the DeFi space as any other crypto asset.



Let’s imagine that an art collector needs cash. He’s asset rich, but has a poor cash flow and doesn’t want to lose his art collection.

What he can do is issue a non-fungible token (NFT) - a digital file whose unique identity and ownership are verified on a blockchain (a digital ledger) - representing the ownership rights of each specific art piece. 

Then, he can use NIFTIT to break the NFT into various pieces, known as Fragments. 

NIFTIT is an app that operates via the CRD Network. The app breaks up the NFT and makes the Fragments buyable for a two-week offer period through CRD Tokens, after which the Fragments become tradable on decentralized exchanges.

The sum total of these Fragments represents the ownership rights of each painting, as each NFT did beforehand. 

After which, he can sell each Fragment at a pre-agreed price, or even use it as collateral for loans. This mechanism allows unique objects to have multiple owners that can change minute by minute, as these Fragments can be sold on decentralized exchanges, like with any other crypto asset.

In this scenario, the art collector wants to retain ownership over his paintings, so he’s careful to retain a controlling stake of 51% of the Fragments. 

Then, if he ever wanted to regain complete control over the entirety of his asset, he could trigger a pre-agreed buyout clause that forces a sale at the then current price plus a slight markup.

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