The Crypto platform Nexo issued a loan of over $3.3M at a 21% annual interest rate to a CryptoPunk owner who used two CryptoPunks with the rare “Zombie” trait NFT as collateral. As per reports, the 60-day loan was made for 1,200 Ether.
Interestingly, the transaction involved other participants including decentralized finance (DeFi) marketplace and NFT lending platform Arcade, and investment manager Meta4Capital.
The chief of DeFi strategy at Nexo, Kiril Nikolov said “With this multilateral partnership, we are demonstrating the merger between traditional, decentralized, and crypto finance.”
Recently, a loan backed by lending 101 CryptoPunk NFTs, worth $8 million was approved by liquidity scaling solution MetaStreet.
CryptoPunks art, which was worth more than $8M, was issued on the NFTfi platform. But the loan was pulled at the last minute.
Brandon Buchanan, founder and managing partner at Meta4 Capital said that people have become attached to their NFTs and they have become part of their identities, especially online and in Web 3.
He further added that many people view NFTs as a store of value or a way to accrue Ether.
