People Are Taking Out Loans Against Their NFTs – And Defaulting

NFTs are easily the craziest financial phenomenon I’ve ever encountered.

Via: Vice:

In the ongoing speedrun to turn everything into a non-fungible token, savvy traders and entrepreneurs have recently taken a few steps to squeeze more investment opportunities out of their JPEGs.

Case in point: it’s now a thing to take out a loan and offer up an NFT as collateral. Take NFTFi, a peer-to-peer lending platform described by Coindesk as a “pawn shop for NFTs.” The core premise is that you can mortgage your NFT in exchange for other crypto that can be sold for cash while keeping your NFT safe—if you can repay the loan.

Related:

Someone Actually Paid $1.3M for an NFT Cartoon Rock

MekaVerse Reaches $60M In Mystery NFT Sales

Source

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