NFT collector Seedphrase took a loan of $2.75 million secured by a CryptoPunk token. According to the platform's report, this is the largest loan secured by an NFT in history. The $2.75 million loan was issued on the lending platform Gondi for a term of six months with an interest rate of 17%.
The owner of the CryptoPunk is also an investor and advisor to the platform.
"By pledging my CryptoPunk, I was able to obtain $2.75 million in capital without giving up ownership of this historic NFT. This liquidity allows me to strategically allocate funds in cryptocurrency markets," Seedphrase explained to Decrypt.
According to the platform's co-founder under the pseudonym Burga, this case illustrates the maturity of NFTs as an asset class:
"[This loan] demonstrates that NFTs are maturing as a legitimate asset class and provide digital asset holders with more efficient ways to access liquidity compared to almost any other asset in the world."
