A crypto borrower had to give up his Elevated Deconstructions NFT, which is currently valued at $340,000, as collateral for a $12,000 loan. The value of the NFT collection is in the range of $306,000 to $720,000, as confirmed by popular crypto enthusiasts Punk 6529 and Cozomo de’ Medici. For details on this interesting event cryptocoin.com You should keep reading.
Credit platform owns over $300,000 of NFT collectibles for $12,000 in credit
In a rather interesting case, a crypto lender has now become $340,000 richer after a borrower failed to repay his $12,000 NFT secured loan. Three months ago, an NFT aggregator decided to use the “Elevated Deconstructions” NFT as collateral on the DeFi loan platform NFTfi. In exchange for the NFT collateral in question, he received a loan of 3.5 ETH worth approximately $12,134.
It is worth remembering that the NFT that was guaranteed is part of the “Art Blocks Curated” set. At the time of the deal, it was selling for just 11 ETH ($39,600). But soon the value of the NFT collection soared to 85-200 ETH ($306,000 – $720,000), as confirmed by popular NFT collectors. Collectors were Punk 6529, a Twitter account run by the owner of CryptoPunks, and Cozomo de’ Medici, a Twitter account claimed by rapper Snoop Dogg. Yesterday, the loan was due, but the borrower could not pay his debt. The lending platform has now gained ownership of over $300,000 of NFT collectibles, after losing just $12,000.
The borrower who lost the NFT won the same way
However, the current owner of NFT may not be able to sell it immediately for the amount it’s currently worth. The last “Elevated Deconstructions” NFT was sold 18 days ago and shows low demand for frenzy despite endorsement by famous people. Therefore, the borrower may have chosen to forego the collection for quick liquidity.
More interestingly, this is the second time the “Elevated Deconstructions” NFT has been offered as loan collateral. In both cases, borrowers lost to lenders after a loan default. The original owner of NFT gave up on NFT after failing to repay his 3 ETH ($10,800) loan in April. On the other hand, the NFT.fi borrower we mentioned obtained similarly before losing. The NFT.fi borrower took out a series of NFT secured loans. In April, he received an Arago NFT after his 3 ETH loans expired. Later in May, he received 1 ETH, including principal and interest, for a loan he had secured as a Decentraland parcel. However, the lender/borrower has been inactive for 58 days, according to the Etherscan Blockchain records.
All in all, the story shows how potentially profitable NFTs can be, with massive inspiration rising from Beeple’s $69 million artwork. Last month, a 12-year-old made $400,000 selling his own-made “Weird Whales” NFTs. The perceived value of these collections ranges from seemingly simple depictions into the hundreds of thousands and even millions. Earlier this year, a funny video titled “Charlie bit my finger” was auctioned for $760,000 as NFT.
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