CryptoPunk #8348, a unique CryptoPunk and the only one with seven properties, was loaned for $2.75 million in a historic financing deal facilitated by NFT lending platform GONDI.
The loan, which has a term of six months and an interest rate of 20%, must be repaid by the borrower. NFT collector Seedphrase – at that time, otherwise he will hand over his Punk to the lending party.
Originally purchased in May 2020 for 85 ETH ($18,000 at the time), Punk #8348, which has become synonymous with Seedphrase’s online identity, has not changed hands since.
“This is akin to using a Picasso as collateral in the traditional art world – an asset that increases in value over time, but can also unlock significant liquidity when needed,” says Seedphrase, investor and advisor to GONDI .
“By collateralizing CryptoPunk 8348, I was able to secure $2.75 million in capital without relinquishing ownership of this historic NFT,” Seedphrase explained, adding: “This liquidity allows me to strategically deploy funds in the crypto markets, especially as I may be approaching my goal. fourth crypto bull cycle.”
The loan is the largest ever facilitated by Gondi, one of the leading NFT financing platforms, which now net loan volume of more than $100 million.
“This $2.75 million loan marks an important milestone for NFT lending,” said co-founder Burga, who goes by the pseudonym Gondi Declutter. “The loan terms demonstrate how NFTs are maturing as a legitimate asset class and creating more efficient options for digital asset holders to access liquidity compared to virtually all other assets globally.”
What are CryptoPunks?
CryptoPunks, one of the first and most notable Ethereum NFT collections have historically generated the largest NFT loans. Earlier this year, GONDI also facilitated a $1 million loan on a CryptoPunk owned by NFT personality and entrepreneur Gmoney.
Competing NFT financing protocols Arcade And NFTFi have previously facilitated bundled CryptoPunk loans of $3 million and $8 million respectively.
“On-chain lending and NFT financing represent a transformative shift in the way we think about assets and liquidity,” Seedphrase told us. Declutterand adds: “Unlike traditional financial systems, on-chain solutions are transparent, accessible and uniquely tailored to digital assets.”
While CryptoPunks are among the most funded collections, Gondi supports 70 whitelisted NFT projects, including art from XCOPY, Snowfro, Beeple, and more.
CryptoPunk’s floor price, or the cheapest price of an asset listed on a marketplace, has been rising in recent weeks. re-establishing a floor price of more than $100,000 for the first time since June.