Renowned NFT Collector Takes a Seven-Figure Loan Against Rare CryptoPunk NFT
GMoney, a well-known NFT collector, has borrowed $1 million USDC against the rare CryptoPunk 8219 NFT. He took out the loan to prove the mainstream media wrong, who claim that NFTs are worthless.
A Seven-Figure Loan To Prove A Point
GMoney’s loan is the largest ever borrowed against an NFT on the Gondi platform. He wanted to show that NFTs have value by taking a million-dollar loan against one. He was inspired by an article in Rolling Stone that claimed NFTs are worthless.
“What better way to show that these are not worthless if I can get a million-dollar loan against an NFT, right?”
GMoney, who is the founder and CEO of 9dcc, a connected fashion brand, is known for making significant bets on high-value assets. He has a large following in the crypto space due to his notable PFP collection.
GMoney’s Collection
GMoney owns 24 Apes in his collection of 10,000 NFTs. CryptoPunks can sell for millions of dollars, with a base price of nearly $140,000 for a CryptoPunk on secondary marketplaces. Rare assets can fetch even higher prices.
Loan Secured On Gondi
GMoney secured the loan on Gondi, a leading NFT lending protocol that matches NFT owners with liquidity providers. The lender can put up the NFT as collateral and receive a loan, with the possibility of earning interest or taking control of the NFT if the loan is defaulted.
The loan was for $1 million USDC with an interest rate of 14% for 180 days. This means GMoney will need to pay over $69,000 in interest per month for the next six months.
“ICONIC LOAN ALERT $1,000,000 USDC loan originated against the one and only Ape Punk #8219 from @gmoneyNFT Loan Terms: 14% APR for 180 days Gondi is proud to help iconic assets secure loans. We are just getting started! Thank you for paving the way, G.”
GMoney also disclosed that he is an investor in Gondi and a rival NFT lender, Arcade. He stressed that these lending platforms don’t require any special connections or real-world identity proof, allowing any valuable NFT owner to take out a loan in a trustless manner.
“When you introduce credit into the system, you start to see some pretty crazy stuff happen.”
Hot Take: GMoney Challenges Mainstream Media Perception on NFTs
GMoney’s decision to take a massive loan backed by his rare CryptoPunk NFT challenges the notion that NFTs are worthless. He aims to prove that NFTs hold significant value and defy the negative narrative created by mainstream media. This move also showcases the emerging possibilities of using NFTs as collateral for loans, highlighting the growth of the NFT lending space. As an influential figure in the crypto community, GMoney hopes to inspire others to recognize the potential and value of NFTs.
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