Crypto is a rapidly growing space. With ever-evolving systems and technology, the functions of crypto are no longer limited to just selling and buying; now, it even enables users to borrow funds! This provides an opportunity for investors to obtain loan funds according to their needs. Crypto lending has increased its utility on the market, and is essentially the same as borrowing funds from a bank using collateral. Did you know that you can use NFTs as loan collateral? How does it work? Read on to find out!
Crypto Loan on Tokenomy Using NFT as Collateral
Non-Fungible Tokens (NFTs) are assets in the form of digital art traded on a blockchain system. When you buy an NFT, you own the original file of the artwork and its property. With the rise of NFTs in the market today, prices can skyrocket. Due to its potential for value, Tokenomy now accepts the use of NFTs as collateral for a crypto-asset debt.
Crypto lending with NFTs allows you to utilize the value of your NFT assets so they perform other functions while you are holding them until an increase in market price. The system on Tokenomy also makes it easier for you to take out loans without checking your credit history — all loan approvals will be evaluated on the value and authenticity of your NFT.
The amount of crypto you can borrow will be determined based on the value of your NFT. Specifically, you can borrow IDK assets with an interest rate adjusted according to the loan tenor, market value, liquidity, and whether the NFT is community-supported. The tenor provided by Tokenomy is 30/60/90 days, and assets can be re-borrowed after being repaid on time. Your NFT will also be assessed again prior to refinancing. If you don’t wish to re-borrow, the NFT assets will be returned immediately after repayment.
Since NFT is a new asset and liquidity is limited, Tokenomy will only accept well-known NFT guarantees such as CryptoPunk and Bored Ape Yacht Club valued above $50,000 and purchased on certain NFT markets. If you buy it outside an approved market, you can contact the Tokenomy team, where your NFT will be evaluated on a case-by-case basis. The Tokenomy team will conduct an assessment of the NFT value and adjust it to the tenor you choose to determine your interest.
Crypto Loans on Tokenomy
Interested in borrowing crypto with your NFT assets? Don’t hesitate — the security of your NFT assets during the loan period is guaranteed! Tokenomy is regulated by the 2010 Financial Services and Security Act (LFSSA) and licensed by the Malaysia International Business and Financial Center (IBFC). The loan application process is also easy — just register for free and go through a series of identity verification steps. The Tokenomy team will then conduct a review and assessment of your assets. If your assets pass the review, the loan funds will be sent immediately.