Mainstream Media Reports vs. CryptoPunks NFT
Mainstream media reports might tell you that NFTs are dead, but one holder of a CryptoPunks NFT is determined to prove them wrong. Gmoney, a collector and entrepreneur, took out a seven-figure loan on one of the rarest assets in the CryptoPunks collection as a way to demonstrate their value.
A Prominent Profile Picture Collection
Gmoney, known for making sizable bets on high-value assets, holds CryptoPunk #8219, which is one of only 24 Apes in the entire 10,000 NFT collection. Other Apes have sold for as much as $10 million in the past. While CryptoPunks start at nearly $140,000 on secondary marketplaces, rare assets in the collection can fetch even higher prices.
Taking a Loan on Gondi
Gmoney secured a $1 million loan on Gondi, an NFT lending protocol. These platforms match NFT owners with liquidity providers, allowing holders to use their NFTs as collateral for loans. The loan terms were for $1 million worth of USDC stablecoin with a 14% interest rate over 180 days. This loan is considered the largest per date via an NFT lending platform.
The Rise of NFT-Backed Loans
Gmoney believes that the emergence of NFT-backed loans can have a significant impact on the crypto space. He sees introducing credit into the system as a catalyst for even more remarkable developments and asset appreciation.
Hot Take: The Value and Potential of NFT-Backed Loans
Despite mainstream media skepticism about NFTs, Gmoney’s decision to take out a seven-figure loan on his CryptoPunks NFT showcases their value and potential. By using his rare asset as collateral, Gmoney demonstrates the viability of NFT-backed loans and their ability to unlock liquidity for NFT holders. This innovative approach could further accelerate growth in the NFT market and pave the way for new financial opportunities within the crypto space.
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