NFTs as collateral for a loan – Is this the new paradigm shift we needed?

What is the value of a NFT

Unless you live under a rock, you already have heard of the word NFT. You do not have to be actively involved in the web3 community or crypto space because this term has made it to mainstream conversations. 

But if you are still confused with questions like 

  1. What is an NFT? 
  2. Why are people going crazy buying them?
  3. Should I invest in one myself? 
  4. What is the actual value of a NFT?
  5. What is the use case of NFTs?

Then fret not because we have got you covered here. Today we want to talk about something that is making news because it is reported as the largest-ever. NFT backed loan to date

So what is the loan amount, you ask—$ 8 million. YES, you read it right. Now, if you are scratching your head about how they arrive at this value, well, there are many ways it is decided. Binance has a good write up on it. And while this is a momentous occasion that should be celebrated and seen widely as the “IT MOMENT” for the NFT ecosystem, just like the pitfalls of any new technology, we should be careful with what we celebrate. The NFT ecosystem has grown exponentially in a concise span of time. It has attracted the attention of celebrities from every sphere of life, and that list is growing every day, but that does not mean everything is perfect, and you can just go out there and get yourself an NFT collection.

Remember that you are spending your hard-earned money on a digital asset, so you need to be absolutely sure that you are making the right decision. Now, if you may ask, how?

NFTs as Collateral

 

Well, glad you asked. Enter  Scour, our product that shows you what amount of transactions done for a particular NFT, can be suspicious. These transactions are normally termed as “wash trade” transactions. Demand and supply are big factors in determining the price of NFTs, so if you see a lot of transactions on an NFT, you immediately assume it is in high demand. With our tool, you will know what percentage of that demand is artificially created and what percentage is genuine.

You will see this integrated with a lot of NFT workplaces. Still, as we ramp up our efforts to sign up more partners on our platform, we will also eventually offer it to the community to make better and more informed decisions on NFT purchases.

But that’s not all. We also have Liquify, which we like to define as “An accurate method of determining fair values for NFT assets using AI is at your disposal.” With tools like these and more under development, we like to call ourselves the #NFTPolice. We are passionately #BUIDLing a lot of stuff to make the whole ecosystem a safer and better place for the community we care deeply about. 

We promise that you will hear a lot about us (from us and from some of the biggest names in the industry) over the next couple of weeks, so if you want to be the 1st one in the line to know what our product team is busy cranking on, drop us a line here and we will keep you posted.

As for now, keep yourself updated with the latest in the industry by visiting our blog regularly, or if social media is your jam, we have got you covered here too.

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