NFT-managing South African startup collects $ 5 million in the latest Seed round-Defi

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Von: Krypto News Österreich

A South African startup, NFTFI, is said to have recently collected $ 5 million that the company wants to use to boost its business of not funny tokens (NFTS).

marketplace for cryptocurrency loans

according to a techcrunch Test report , Nftfis capital increase of $ 5 million was led by Sound Ventures by US actor Ashton Kutcher. Maven 11, Scalar Capital and Little Perkins.

include the other investors involved in the financing round

The company, founded by Stephen Young in February 2020, already acts as a marketplace where users receive a cryptocurrency loan for their NFTs and borrowers can offer loans against their NFTs. By ensuring their tokens, NFT owners can release liquidity without selling them, the report said.

Since the first loan was made possible in May 2020, NFTFI has said that more than 1,500 such transactions have taken place on its platform.

price dynamics

The report quotes Young and explains how the credit and credit process begins and what happens when a borrower fails. In the same report, Young also outlines the price dynamics between lenders and borrowers at NFTFI. He said:

lender would like to have a certain scope between the price of the assets and the amount of lending. This is because in the event of a payment failure, someone must be able to sell it for less than the market value, and the price could have fallen in between. Therefore you need such a large buffer between the lending value and the value of the actual wealth value.

Although 20 % of the borrowing is in arrears on the NFTFI platform, it is mainly loans with a lower value, Young revealed. According to the NFTFI founder, this mainly happens because high-quality NFTs are quite exclusive and difficult to get. Users thus finance loans from which they hope that the borrower will be in arrears and therefore give the NFTs.

The top NFT loans on NFTFI include popular digital collectibles on the Ethereum Blockchain, including Art Blocks, Bored Ape Yacht Club, Cryptopunks, Autoglyphs, Mebits and Vee Friends.

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