The Defiant

NFT Collector GMoney Collateralized CryptoPunk 8219 For $1M Loan

GMoney is backing the $1M loan with Crypto Punk 8219.

By: Pedro Solimano Loading...

mage depicting the concept of NFT-backed loans, created in a minimalistic style with neon colors

Renowned NFT collector, GMoney, has borrowed $1 million USDC against iconic CryptoPunk 8219. The transaction took place on the NFT lending platform, Gondi.

The loan constitutes the largest amount borrowed against an NFT, on the Gondi platform. The second place belongs to CryptoPunk 9707, with a $150,000 loan, while Autoglyph 327 lands in third, with a $130,000 loan.

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While there have been larger NFT-backed loans, they were mostly issued at the height of the previous crypto bull market. Today’s $1 million loan is a sign NFT-backed borrowing and lending markets may be heating up.

Liquidity allowing for million-dollar-plus loans potentially opens the doors for larger entities looking to capitalize on engorged valuations for their NFT collections, much like the six-figure 8219, broadening legitimacy among institutional investors.

Gondi is an NFT-backed marketplace that allows users to request loans backed by digital collectibles. It raised $5.3M last year, capitalizing on its blue-chip Ethereum NFT collections that go beyond CryptoPunks.

The platform is also home to AutoGlyphs, Bored Ape Yacht Club, Chromie and Fidenza, among others.

Blur is the largest platform enabling NFT-backed lending, with almost $64 million in total value locked, according to DeFiLlama.

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