The lender took the NFT worth $ 342,000 due to the client’s failure to repay the $ 12,600 collateral.
The client used his NFT as collateral in August to
take credit in the amount of 3.5 ETH on the DeFi platform NFTfi. As a loan, the investor offered NFT “Elevated Deconstructions” from the Art Blocks Curated collection, which at that time cost 3.25 ETH. It was less than the amount he borrowed.
However, before the loan expired, the value of NFT soared to 85 ETH, and then to 200 ETH, respectively, to $ 306K and $ 720K, thanks to the support of renowned NFT collectors such as Snoop Dogg and Punk. Unfortunately, before the loan expired, the NFT collector was unable to repay the loan. As a result, the collateral in the amount of more than $ 342 thousand was transferred to the creditor. Thus, the DeFi platform NFTfi received an NFT worth almost 30 times the amount of the collateral lent to the investor.
The NFT industry is increasingly integrated into our life and economy, the largest companies are using the opportunities of this market. As a reminder, FTX.US, the American branch of the FTX cryptocurrency exchange, recently launched an NFT trading platform. At the same time, the site refused to place NFTs offering royalties, fearing prosecution from regulators. Also recently, the Chinese company Alibaba Group Holding created an NFT marketplace for the sale of tokenized intellectual property licenses by trademark owners.