NFTs have become a mainstay of the crypto economy. The crypto-public’s desire for blockchain-certified art has continued unabated since their creation first hit the headlines with eye-watering figures paid out for some of the first NFTs, like the $69 million paid for Beeple’s First 5000 Days.
New NFTs are being minted and collected each day, with new ‘collections’ – like the enormously successful cryptopunks – continuing to sprout up. Soccer teams have even begun minting their own NFTs to provide a new outlet for their fans to support the team. As such, a roaring trade has developed over digital art that promises to evolve in line with the general rise of cryptocurrency.
The Value of Art
Art has always been an excellent store of wealth. Although the value of art can follow the same eddies that every commodity can, it nevertheless has proven throughout history to successfully retain and improve its value over time. This can lead to a huge amount of wealth lying dormant in the real and digital galleries of the world – wealth that could easily be made more fungible and put to more productive use in various markets. This is where NFT-backed lending mechanisms come in. It gives a chance for the owners of NFTs to unlock the reserve of value within them and further develop their assets. In that sense, NFTs have the possibility to be more fungible as a store of value than classic art, and their value may supersede it as a result.
Art as Collateral
Lending against collateral is hardly anything new, even in the crypto space. One of the most successful stablecoins – DAI – has its entire mechanism based on the idea of being lent money by putting up collateral. Lending against NFTs is something new. Fluid lending within all economies – “hot money” – leads to propulsive and exponential wealth.
This is where NFT Tech’s liquidity matching engine opens up a world of possibility that could be the future of DeFi. Giving users a chance to establish a value for their NFTs on the open market and then access crypto-capital that can then be redistributed through the wider spheres of the DeFi market. It allows holders of valuable (and not so valuable) NFTs to start to earn an impressive yield and put their NFT’s value to work – whether that be through staking, further lending or simple deployment into faster-rising assets.
NFT Tech’s Marketplace Unlocks NFT’s True Value
NFT Tech is an NFT marketplace based on its very own interoperable blockchain network that uses Orion’s oracle to aggregate market prices for NFTs and allow seamless swapping between them. It creates a bid order book for NFTs so buyers and sellers can be matched together effectively and allows for the investment into, and the trading of, NFTs with the same fluidity that you might expect from a typical exchange. This liquidity matching engine gives a sure-footing for the NFT market to truly enter the mainstream. By creation of this marketplace, it allows investors to truly dive into the NFT market and speculate as they would within any other – all with a few simple clicks.
Once a user has amassed a collection the Louvre would go green for, NFT Tech will offer the chance for that user to then loan crypto capital against it at a market-leading interest rate. Having your artwork transcend from merely a digital gallery into a reserve of wealth that can be tapped into will certainly increase the overall value and faith in this nascent asset-class, and NFT Tech is leading the orchestra of its penetration into the mainstream.