NEWSFLASH:  NFTs are Worthless

A little over 3 years ago, I took out the largest onchain loan against an NFT for $25k.  Today, I am taking what might be the biggest loan against a single CryptoPunk (possibly a single NFT, but not sure and don't have time to fact check).

https://www.gondi.xyz/collections/wrapped-cryptopunks/8219

What has excited me about NFT Finance since its inception, is how it will change the market.  What kind of supply shock will there be, when owners of these high value assets don't need to sell for access to liquidity?

2/9

Thanks to NFT Finance platforms like gondixyz (portco), Arcade_xyz (portco), and NFTfi, and lenders like metastreetxyz (portco) as well as numerous other players in the space, access to capital will become more efficient and cheaper over time.

4/9

Currently, there are 2 limiting factors I see:

The first is a mismatch between currency that lenders want to lend, and borrowers want to borrow in.  Once we can figure out how to match these 2 groups, we will see an explosion in NFT Financing.

5/9

The second, is a misunderstanding of the NFT market.  Currently, anyone not in crypto (most of the population) thinks all NFTs are worthless. (Credit RollingStone for selling the absolute bottom of the market).  This will change as lenders begin to understand the market.

6/9

The amazing thing is, even with the massive pullback the crypto and NFT markets have had over the last 2 years, CryptoPunks are sitting at a $140k floor as I type this.

7/9

We had an incredible bull run last cycle. That was with little to no credit in the system. Can you imagine what that is like with the introduction of a real credit system with natural buyers and sellers? Hint: mortgages were introduced into the US housing market in the 1930s

8/9