Yesterday, Chief Executive Officers of some top corporations and Joint Venture capitalists rallied support for the NFTfi platform to accelerate its success. The project known as NFTfi refers to a peer-to-peer platform for lending non-fungible tokens. Dapper Labs CEO is a major stakeholder in NFT who has been financing the project.
NFTfi allows users to use their NFT tokens as collateral while borrowing money. In other words, instead of selling their artworks and losing the ownership completely, NFTfi allows them to regain ownership of the asset once they have repaid the loans. Yesterday, some big investors, including NFT firms and top executives, supported the project with a total sum of $890,000.
The NFT Sector is Becoming Increasingly Popular
NFTs are collections of crypto artworks that serve as proof of ownership of games, works of art, or training cards. Today, some NFTs are now sell for thousands or even millions of dollars. The NFT sector has developed to the extent that famous digital artists, such as Beeple, have created hundreds of unique artworks. Meanwhile, Beeple became a center of attraction when he made a whopping $3 million in a day from the sale of his NFT-based collection of arts.
Also, Stephen Young developed an NFT that allows borrowers to present Ethereum-based NFTs as collateral while applying for loans. For example, you can borrow an NFT and integrate it into a crypto-based game or take it to an NFT art gallery for exhibition.
After the announcement of the better version of NFTfi last year June, a total amount of $1.5 million crypto loans have been completed on the NFTfi platform. This project allows lenders on its platform to get interest on their loans using Ethereum as their payment option.
NFT: A New Pathway to Digital Capitalism
Whenever people try to know what NFT is all about, they create in their minds various images of digital art platforms. The Ethereum Blockchain serves as the basis of NFT. However, Dapper Lab has also been developing Flow, an NFT-based blockchain designed to eliminate the drawbacks associated with Ethereum, such as the huge fees and delays users encounter while executing transactions.
The funds that NFTfi has generated will be used to create a new blockchain and enhance decentralization. Lately, NFT enthusiasts have been searching for various ways to trade NFT. NFTfi is one of the newly created platforms. Rarible is also another NFT platform that gave out tokens in 2020 to users of its platform. Consequently, Rarible’s price rose, attracting other people to invest in the platform.
Another example of NFT creative ideas by crypto lovers is NIFTEX built by a Singaporean. This platform enables users to fractionalize the NFTs to get many ERC20 tokens. This will enable you to purchase a fraction of a crypto artwork and use it to trade on a crypto exchange the same way you trade a fraction of Bitcoin. Also, Animoca Brands is an investor in crypto games like “The Sandbox.” Some of the officials of the company are major investors in the game.