Rare CryptoPunk Used as Collateral for $2.75 Million Loan

A record-breaking loan has been initiated on the NFTfi platform Gondi, using the only 7-trait CryptoPunk as collateral for a $2.75 million loan.

Punk 8348, owned by investor Daniel “Seedphrase” Maegaard, is the collateral for the multi-million dollar loan, which is now the “single largest on-chain loan against any NFT in history,” according to lending platform Gondi.

The terms set are for a 180-day loan at a 17% annual percentage rate (APR), with a massive $41,250 origination fee. The origination fee protects the lender against any exploits or oversights on a potential refinancing.

Punk 8348 was last sold in May 2020 for 85 ETH, worth just $18,000 at the time. The NFT has only been listed once since, when Seedphrase put it up for sale for 60,000 ETH, or $171 million, in Aug 2021. However, he withdrew the listing within a matter of weeks.

Seedphrase took to X and said, “This move underscores how NFTs like CryptoPunks are evolving from cultural artefacts to dynamic financial instruments, resulting in a transformative shift in how we think about digital assets and liquidity.”