The news surrounding Yuga Labs is hot. While a class action lawsuit could be filed against the company following the global depreciation of its projects, Kucoin has just unveiled the sale of two Bored Ape Yacht Club (BAYC) in a special format.
The BAYC collection is one of the most popular NFT projects in the world. Indeed, even after a sharp drop in its floor, the minimum price to acquire a BAYC is around $100,000. In fact, the majority of people interested in the collection cannot enter the community because of the high economic barrier.
Kucoin is not satisfied with this situation and wants to offer a unique opportunity to its users to join the very selective club of BAYC holders. To this end, Kucoin introduces its new system: the sale of fractional NFTs.
Kucoin unveils its first fractional NFT project: HiBAYC
This split is relatively simple. In practical terms, Kucoin imagines a system in which 1 BAYC is equal to 1,000,000 hiBAYC. This system effectively allows modest users to invest in a BAYC without necessarily owning the whole.
In this first version of fractional NFTs, Kucoin offers for sale 2 million hiBAYC (ERC-20 tokens), which is the equivalent of 2 BAYC. The two copies chosen by Kucoin are BAYC #5066 and BAYC #8669.
Each hiBAYC will have a selling price of USDT 0.13, but a user will not be able to acquire more than 200,000 hiBAYC. In fact, Kucoin’s intention seems to be to create a community experience by avoiding that one player gets the majority of the hiBAYCs offered for sale.
Participation in the auction will be conditional on prior registration from Wednesday 27 July to Friday 29 July. Once this period has ended, registered users will be able to access the trading area specially designed for this new service to start trading the HIBAYC/USDT pair. This will be a flash sale where speed will be of the essence in order to get a piece of the pie.
Finally, Kucoin is collaborating with Fracton, a protocol specialising in NFT liquidity infrastructure, to launch a Learn to Earn programme in which users will be able to prove their NFT knowledge. The winners will share a prize pool of 250,000 hiBAYC.
Kucoin is optimistic that the project will succeed
Kucoin is confident that the sale will be successful. Firstly, the platform considers that the low price of hiBAYC will have a positive influence on the popularity of the process since “everyone will be able to participate in one of the most popular investments of the moment”.
Moreover, the availability of these hiBAYC tokens on the Kucoin platform should ensure, according to the company, significant liquidity for buying and selling in the long term.
It also emphasises the security and simplicity of the process, as the entire buying and selling process can be done from one’s trading account. Nevertheless, this centralised experience could also be a major obstacle for a part of the community that is strongly attached to the decentralisation of the market.
The success of this initiative could lead to a recurrence of these sales by popular trading platforms that are showing a continued interest in the NFT sector.