In summary
- CryptoPunk #8348 was loaned for $2.75 million in a landmark deal through GONDI, with an interest rate of 20%.
- Seedphrase used the NFT as collateral, ensuring liquidity without losing ownership of the Punk, which it purchased for 85 ETH in 2020.
- The $2.75 million loan marks a milestone in NFT lending, highlighting the growth of NFTs as legitimate assets useful for liquidity.
CryptoPunk #8348, a unique CryptoPunk and the only one with seven traits, was placed on loan for $2.75 million in a landmark funding deal facilitated by NFT lending platform GONDI.
The loan, which has a maturity of six months and an interest rate of 20%, must be repaid by the borrower — the notable NFT collector Seedphrase— at that time, or you will assign your 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 comparable to using a Picasso as collateral in the traditional art world — an asset that appreciates over time, but can also unlock substantial liquidity when needed,” said Seedphrase, who is an investor and advisor to GONDI.
“By using the CryptoPunk 8348 as collateral, I was able to secure $2.75 million in capital without giving up ownership of this historic NFT,” Seedphrase explained, adding that “This liquidity allows me to strategically deploy funds into the crypto markets, particularly as I approach potentially into my fourth crypto bull cycle.”
The loan marks the largest facilitated by Gondi, a leading NFT funding platform, which has now amassed over $100 million in net loan volume.
“This $2.75 million loan marks a significant milestone for NFT lending,” Gondi co-founder known as Burga, told Decrypt. “The terms of the loan demonstrate how NFTs are maturing as a legitimate asset class, creating more efficient options for digital asset holders to access liquidity compared to almost any other asset globally.”
What are CryptoPunks?
CryptoPunks, is one of the oldest and most notable Ethereum NFT collections, and has historically obtained 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 funding protocols Arcade and NFTFi have previously facilitated CryptoPunks pooled 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 Decrypt, adding that “Unlike traditional financial systems, on-chain solutions are transparent, accessible, and unique for digital native assets.
Although CryptoPunks are among the most funded collections, Gondi supports 70 NFT projects, including art from XCOPY, Snowfro, Beeple, and more.
CryptoPunk’s floor price, or the cheapest price of an asset listed on an exchange, has been rising in recent weeks, returning to a base price of over $100,000 for the first time since June.
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