Art that adorns the walls of the global elite isn’t usually just to look at. They use it as a source of liquidity, too.. Fresh off closing a $1.5 million funding round led by Sino Global, Amber and Spartan Group, Pine is building a platform that allows NFT holders to access liquidity using their NFT as collateral, and a mortgage-type vehicle it is calling “Pine Now, Pay Later” for those who are looking to purchase an NFT but require financing.
One particular factor that differs between the pools is the accepted loan-to-value ratio. Pine uses the floor price of the specific NFT collection from public data published by markets as a reference for valuation. But these are subject to the intense volatility of the crypto market. During the last two weeks, for instance,against the U.S. dollar, cratering valuations along the way – problematic for those lending out dollars against the asset.
“The number of projects with weekly sales of over 10, 100, 1K and 10K NFTs have been on a downtrend the past week as well, signaling that there’s a drop in overall liquidity in the NFT markets,” said Martin Lee, a data journalist at Nansen, in a note to CoinDesk. Nansen’s data shows there’s still weekly higher volume than in most weeks of 2021, and in the last 30 days there has been a 58% increase in volume from 941,000 ether spent per month to 1.49 million.
thesamreynolds JPRubin23 Interesting… How do you value NFTs for collateralization? Digital pawn shop-esque? 🤔 Sure, replace bank loans but at what premium? Or does pine hold the NFT? Seems interesting.
thesamreynolds JPRubin23 So when the jpegs dump , what's the lenders recourse .. foreclosure it's the ultimate rug init got ur jpegs and ur house too bwahahaha
thesamreynolds JPRubin23 what is this
thesamreynolds JPRubin23 Another project that will fail.