Fractional investment company Rally Rd. has offered users the opportunity to invest in trading cards, sports memorabilia, first edition books, cars, wine and Apple Inc (NASDAQ:AAPL) memorabilia. The company will offer a new asset class this week with the launch of non-fungible tokens.
Benzinga chatted with Rally Founder and Chief Product Officer Rob Petrozzo to find out more.
CryptoPunk 9670: The first NFT asset from Rally is launching at 12 p.m. ET Friday. Users will be able to purchase shares of the asset CryptoPunk #9670.
Shares of the Punk will be offered for $10 and value the NFT at $72,000. The asset was priced before a huge surge in valuation of CryptoPunks bringing a sale price to Rally users.
“It was pretty clear the market was moving fast, but no one predicted that fast, us included,” Petrozzo said. The company decided not to change the price and give a good deal to Rally investors for this new asset class on the platform.
“We want to make sure our customers feel comfortable making the investment,” Petrozzo said.
Users will only be able to purchase two shares of CryptoPunk 9670 for $10 each. The company plans to keep this share cap in place for Friday and through the weekend.
“The goal is to make sure everyone has a chance.”
The current floor price for CryptoPunks is 102 Ethereum (CRYPTO: ETH) or around $358,000, making the Rally offering priced well below the current assigned value.
Related Link: CryptoPunks Have Outperformed Bitcoin And Ethereum In 2021
CryptoPunk 8103: Another factor that went into not changing the price on the CryptoPunk 9670 asset is that another CryptoPunk will be coming to Rally next week.
CryptoPunk #8103 is more rare with traits of VR, bandana and front beard dark. The punk is one of only 332 with the VR trait out of 10,000. Rally has priced the asset with a value of $559,800.
Shares will cost $9.33 each with 60,000 shares offered. Investors will be limited to a $15,000 share cap on this asset, significantly higher than the first CryptoPunk offered.
CryptoPun #8103 will be offered to Rally users on Tuesday, Sept. 21 at 12 p.m. ET.
What’s Next For NFTs on Rally? Petrozzo hinted that more NFTs could be coming to the platform bringing fractional investing opportunities to customers for top NFT projects often out of reach for most collectors and investors.
“We never go into a space or try to chase a trend,” he said.
The Rally founder also said the company will be releasing stock certificates in assets as NFTs, bringing a way to get NFTs in users’ wallets. The first utility-based NFT from Rally will be launched on Friday.
CryptoPunks were seen as the perfect place for Rally to start with NFT fractional investment offerings: “This is the rookie card of NFTs and this particular NFT is the one that made the most sense for Rally.”
Petrozzo says there is staying power for NFTs and they have proven themselves as a “true asset class and a real collectible.”
Another area to watch is the potential monetization of CryptoPunks via a partnership between the NFT creator Larva Labs and UTA, a leading talent agency.
“The way all of our offerings are structured is if asset makes more money, potential for dividends.”
Petrozzo said if either Punk was monetized, owners of the shares could see profit share in the future.