The NFT loan marketplace, NFTfi recently raised $5 million to bolster its platform. The South Africa-based company allows users to put their NFTs up as collateral in order to secure loans. By the same token, it is also possible to offer other users loans on their NFTs.
NFTfi offers peer-to-peer loans
NFTfi made waves back in October when the largest NFT-backed loan to date occurred on its platform. That was a $1.42 million loan taken against Autoglyph #488, a high value NFT made by CryptoPunks creators’ Larva Labs.
Altogether this shows how important platforms like NFTfi can be. In the words of NFTfi founder, Stephen Young, “…we want to act as that catalyst for the NFT market, unlocking some of the value in these NFTs…” The funding it secured will go towards growing its services. For example, NFTfi plans to expand onto other blockchains. It currently serves NFTs on the Ethereum blockchain.
It should be noted that NFTfi’s peer-to-peer nature sets it apart from other NFT loan services. In other words, users offer and receive loans to and from each other. This is in contrast to other services, which themselves offer the loans to their users.
Without a doubt, it is not always easy to sell NFTs when you need tradeable currency on hand. In addition, holders of incredibly valuable NFTs such as a Bored Ape, may need Eth but not want to sell their NFT just yet.
Platforms like NFTfi solve this problem. Indeed the past year has seen a few different platforms make it possible to secure a loan by using NFTs as collateral.