According to mainstream media reports: NFT Dead, but the owner Cryptopunk NFT says it wanted to prove them wrong by taking out a seven-figure loan for one of the company’s rarest assets. Profile picture (PFP) Collection.
“It’s been four or five months here. article rolling stone He said NFTs have no value.” collector and entrepreneur Gmoney said today. Rug Radio’s live “FOMO Hour” show. “So I thought, ‘If I can get a million-dollar loan against an NFT, what better way to show that it’s worthless?’
Gmoney is an anonymous founder and CEO. Connected fashion brand 9dccis known in the cryptocurrency world as someone who has placed sizable bets on high-value assets. and he accumulated a considerable following In the process, his PFP became more noticeable.
His Cryptopunk #8219 It’s one of only 24 Apes in a total collection of 10,000 NFTs, others have sold for $10 million in the past. Cryptopunk Starting at around $140,000 is worth Ethereum Although it’s on a secondary marketplace at the time of this writing, the sale price of rare assets in your collection can still offer a significant multiple of that.
that Secured a loan for Gondione of Multiple NFT lending protocols Connects NFT owners with liquidity providers in a decentralized manner. Holders can secure a loan by offering the NFT itself as collateral, while counterparties holding cash can bet that they will earn interest on the transaction, or even receive the NFT itself if the loan defaults.
this specific loan It was for $1 million worth of USDC stablecoin with an interest rate of 14%. But over the course of 180 days, he will pay more than $69,000 in interest every six months.
It recorded the largest loan volume by date through the NFT lending platform.
🚨 Representative loan notifications 🚨
The $1,000,000 USDC loan originated from Ape Punk #8219. @gmoneyNFT
Loan terms: 14% APR for 180 days
Gondi is proud to help iconic assets secure loans. We’re just getting started!
Thank you for opening the way for G ✨ pic.twitter.com/EgXG5za2PT
— Gondi (@gondixyz) February 2, 2024
Gmoney said he was an investor in Gondi. Rival NFT lender Arcade—But lending platforms like these don’t require any special connections, reputation, or actual proof of identity. Any owner of a valuable NFT can receive a loan in a trustless manner.
And he’s optimistic about what the rise of NFT-backed lending can do to further advance this space.
“If you think about the asset valuations we had last cycle, it was discreditable, wasn’t it?” he said “What happens when you introduce credit into the system? We’re starting to see some pretty crazy things happening.”
Edited by Ryan Ozawa.