- Gmoney, known for high-value investments, secures a seven-figure loan against his CryptoPunk NFT.
- The loan, facilitated through decentralized NFT lending platform Gondi, marks a significant milestone.
- Gmoney’s move highlights the growing role of NFTs as collateral in the evolving landscape of decentralized finance.
In defiance of mainstream skepticism surrounding the value of NFTs, prominent collector and entrepreneur, known by the pseudonym Gmoney, has taken a bold step by securing a seven-figure loan against one of his prized CryptoPunks NFTs.
During a live broadcast on Rug Radio’s “FOMO Hour,” Gmoney addressed the prevailing narrative that NFTs are “worthless,” citing a desire to counter this perception. “Here we are, four or five months removed from an article in Rolling Stone saying that NFTs are worthless,” he stated. “And so I was like, ‘Well, what better way to show that these are not worthless if I can get a million-dollar loan against an NFT, right?”
Gmoney, also the founder and CEO of the connected fashion brand 9dcc, is recognized in the crypto sphere for his bold investments in high-value assets, augmenting his already substantial following. His CryptoPunk #8219, categorized as one of the rare Apes in the esteemed 10,000 NFT collection, holds significant value, with previous sales fetching as much as $10 million.
Opting for a decentralized approach, Gmoney secured the loan through Gondi, one of the NFT lending protocols that matches NFT owners with liquidity providers. These platforms facilitate loans with the NFT itself serving as collateral, while the liquidity provider assumes the risk, betting on earning interest or acquiring the NFT in case of default.
🚨 ICONIC LOAN ALERT 🚨
$1,000,000 USDC loan originated against the one and only Ape Punk #8219 from @gmoneyNFT
Loan Terms: 14% APR for 180 days
Gondi is proud to help iconic assets secure loans. We are just getting started!
Thank you for paving the way G ✨ pic.twitter.com/EgXG5za2PT
— Gondi (@gondixyz) February 2, 2024
This groundbreaking loan, amounting to $1 million worth of USDC stablecoin at a 14% interest rate over a 180-day period, marks a notable milestone in NFT lending history.
Despite his vested interest in platforms like Gondi and rival Arcade, Gmoney emphasizes that NFT lending platforms operate in a trustless manner, requiring no special connections, reputation, or real-world identity verification. This accessibility underscores the democratization of financial opportunities within the NFT space.
Gmoney remains optimistic about the implications of NFT-backed loans, foreseeing their potential to catalyze further growth in the NFT ecosystem. “When you think about the asset appreciation we had last cycle—that was without credit, right?” he remarked. “What happens when you introduce credit into the system? You start to see some pretty crazy stuff happen.”
By leveraging his CryptoPunk NFT to access significant liquidity, Gmoney not only challenges prevailing doubts surrounding NFTs’ intrinsic value but also pioneers a new frontier in decentralized finance within the digital art realm.
Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.