Mainstream media reports can tell you that NFTs are dead, but the holder of a CryptoPunks NFT said he wanted to prove them wrong – by taking out a seven-figure loan on one of the rarest assets in the high profile world. profile picture (PFP) collection.
“Here we are, four or five months away from one article in it Rolling stone saying NFTs are worthless,” collector and entrepreneur Gmoney said today Live ‘FOMO Hour’ show from Rug Radio. “And so I thought, ‘Well, what better way to show that these aren’t worthless if I can get a million dollar loan against an NFT, right?’
Gmoney, the pseudonymous founder and CEO of affiliated fashion brand 9dcc, is known in the crypto world as someone who has made significant bets on high-value assets. And it is gathered a significant following in the process, making his PFP even more recognizable.
Are CryptoPunk #8219 is one of only 24 Apes in the entire 10,000 NFT collection, and others have sold for as much as $10 million in the past. CryptoPunks start at a price of almost $140,000 value of Ethereum on secondary marketplaces at the time of writing, but sales prices for rare assets in the collection can still fetch significant multiples of that.
He secured the loan on Gondione of the different NFT lending protocols that match NFT owners with liquidity providers in a decentralized manner. Holders can take out loans using the NFT itself as collateral, and the counterparty disbursing the money bets that they will earn some interest on the transaction – or perhaps take the NFT itself if the loan defaults.
This special loan was $1 million worth of USDC stablecoin at 14% interest, but for a period of 180 days – meaning he will have to pay out more than $69,000 in interest every six months.
It is being hailed as the largest loan as of date through an NFT lending platform.
🚨 ICONIC LOAN ALERT 🚨
$1,000,000 USDC Loan courtesy of the one and only Ape Punk #8219 from @gmoneyNFT
Loan terms: 14% APR for 180 days
Gondi takes pride in helping iconic assets secure loans. We’re just getting started!
Thank you for paving the way G ✨ pic.twitter.com/EgXG5za2PT
— Gondi (@gondixyz) February 2, 2024
Gmoney said he is an investor in Gondi, along with rival NFT lender Arcade– but these types of lending platforms require no special connection, reputation or proof of identity in the real world. Any owner of a valuable NFT can potentially secure a loan reliably.
And he’s optimistic about what the rise of NFT-backed lending can do to propel the space even further.
“If you think about the asset appreciation we had last cycle, that was without credit, right?” he said. “What happens when you introduce credit into the system? You start to see some pretty crazy things happening.
Edited by Ryan Ozawa.