NFT collector Seedphrase secured a $2.75 million loan using CryptoPunk #8348 as collateral. According to the platform, this marks the largest NFT-backed loan in history.
? RECORD-BREAKING NFT LOAN ?
The unique 7-trait Punk #8348, owned by @seedphrase, was just used as collateral for a 2,750,000 USDC loan on GONDI.
Terms: 180 day | 17% APR | 41,250 USDC origination fee
This is the single largest on-chain loan against any NFT in history! pic.twitter.com/78wekAgQbO
— GONDI (@gondixyz) November 27, 2024
The $2.75 million loan was issued on the Gondi lending platform for a term of six months with an interest rate of 17%.
The owner of CryptoPunk #8348 is also an investor and advisor to the platform.
“By using CryptoPunk #8348 as collateral, I was able to access $2.75 million in capital without relinquishing ownership of this historic NFT. […] This liquidity allows me to strategically deploy funds in the cryptocurrency markets,” Seedphrase explained to Decrypt.
According to the platform’s co-founder, known by 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 virtually any other asset in the world.”
Seedphrase purchased CryptoPunk #8348 in May 2020 for 85 ETH.
In September, NFT CryptoPunk #6915 was sold at a “paper” loss of 78%.