A $1.4 million loan was issued using NFT as collateral. Through the clip-to-play platform NFTfi, the terms of the agreement are 30 days and APR of 9.69%.
NFTs are beginning to be used as collateral for issuing loans. It works like any other secured loan if you don’t pay off the loan. The other party will take your collateral. which in this case is NFT.
And before, there was a lender who borrowed 3.5 ETH (worth $7,350 at the time) and when it wasn’t paid back. And they secured a $340,000 “Elevated Deconstructions” NFT.
The $1.4 million loan is the largest secured NFT loan ever, according to data from NFTfi starting Oct. 28, and the NFT is Autoglyph #488, a Type 10 Autoglyph, the rarest of its kind.
Autoglyphs are a collection of artworks stored on the Ethereum blockchain, where the current floor price for Autoglyph is 299 ETH ($1.3 million).
This loan is provided by MetaStreet DAO whose stated purpose is to provide funds to those who need access to capital and are willing to place NFT as collateral. The loan is paid to users of the crypto alias KrypToniK in DAI coins.
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