About NFTX Coin
NFTX price today is $323.76 with a 24-hour trading volume of $15,180,031. NFTX price is up 60.7% in the last 24 hours. It has a circulating supply of 420 Thousand NFTX coins and a max supply of 650 Thousand. Sushiswap is the current most active market trading it.
What is NFTX?
NFTX is the governance token for the NFTX protocol.
How to obtain NFTX?
What is NFTX?
NFTX is a Non-Fungible Token (NFT) index funds protocol built on top of Ethereum.
There are two types of funds on NFTX:
Every D1 fund token has a 1:1 backing against an NFT. For example, if a user owns 2 PUNK-ZOMBIE, that means the user can redeem exactly two random zombie CryptoPunks at any moment.
Every D2 fund token is a Balancer pool’s Liquidity Provider (LP) token that has exposure to several D1 funds’ token. PUNK is a D2 fund that combines five different D1 Punk funds (PUNK-ZOMBIE, PUNK-FEMALE, PUNK-BASIC, PUNK-ATTR-4, and PUNK-ATTR-5).
One of the biggest problems in the NFT space is price discovery due to rampant wash-trading and illiquidity between sales. Having real-time price feeds from popular funds may solve both of these issues.
For example, let’s assume that PUNK-ATTR-4 (Cryptopunk with four attributes) is 150% more expensive than PUNK-BASIC, and the PUNK-ZOMBIE is currently trading at 60 ETH. With this information, users can determine that a zombie CryptoPunk with four attributes should have an approximate price of 150% of 60 ETH, or roughly equal to 90 ETH. We expect more liquidity to flow into NFT markets as more NFT index funds launch.
Other features that the NFTX team expects to release in the future include NFT loans and randomized gift cards. There are currently no fees charged on NFTX.
Who are the target users of NFTX?
NFTX does not aim to serve the hardcore NFT collectors, as these collectors enjoy browsing and trading individual NFTs. Instead, NFTX seeks to serve investors that want exposure to the NFT market. Investing in an index allows investors that do not have time or expertise on NFTs to benefit from the rise in NFTs’ valuation.
With only the D1 funds to bootstrap Asset Under Management (AUM), a more diverse D2 fund is expected to be created to have a more diversified exposure to the NFT market. NFTX aims to be the go-to place for NFT investments. Users will arrive at the homepage and will be able to view metrics for top-level funds backed by NFT blue-chips such as CryptoPunks, Axies, CryptoKitties, Avastars, and Hashmasks.
How to become the NFTX’s funds Liquidity Provider?
Using Hashmasks Index Fund (MASK) as an example, users can supply one or multiple Hashmasks as collateral, which gives back index fund tokens called MASK. MASK tracks the ETH-floor price of all Hashmasks in the index fund.
The Hashmasks basic pool is set up to accept any Hashmasks and does not consider specific attributes of the NFT. Because of this, this index fund will organically become a fund that attracts the least valuable Hashmasks, often referred to as floor Hashmasks.
Redeeming collateral from an index pool will give users back random Hashmasks from the same index fund – there is no guarantee that users can get back the original deposited Hashmasks.