Tokenisation & fractionalisation

1. 1. Spaghetti junction of exchanges

   → Institutions that want to offer token investments to their clients need to integrate with each issuance platform — many of which are also based on different blockchain technologies — one by one.

   → If tokens could instead be listed on multiple exchanges simultaneously, this could spur a virtuous cycle of increased adoption and greater liquidity.

2. 2. Less Reddit, more raw numbers

   → Tokens and fractionalised assets often have more opaque valuations and require greater education of their potential investors.

   → Just as stock investments come with regular reports, alternative assets would do well to publish data on their financials, ownership and governance in a standardised fashion that can be replicated beyond a single exchange.

3. 3. Low demand in “secondary markets”

   → Well hey there, supply and demand. Fractional ownership has gone through different phases. Time-sharing — buying weeks at a particular property — for example went out of fashion a while ago.

   → Buzz and FOMO are fickle things and the get-rich-quick fire is burning low for investors these days. Secondary markets for fractional tokens are limited right now, amid signs that NFT appetite is tapering off: you only have to look to the guy who lost millions on his digital copy of Twitter founder Jack Dorsey’s first tweet.

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