Ever heard of token-based loans? if not check out this article!
U.S based cryptocurrency exchange Kraken on December 24 declared that it is developing a marketplace for NFTs. In this marketplace, users can create integer digital art and collectibles while organizing token-based loans as collateral.
Further, Jesse Powell, the CEO and founder of Kraken, accepted an interview with Bloomberg media outlets. He also disclosed that the exchange is creating a marketplace that will offer custodial services for NFTs. Further, it’ll assist the loans for users using such assets as security.
Moreover, In his interview, Kraken’s CEO named 2021 as the year of Non-Fungible Tokens (NFT). This will be remembered in history as the period in which NFTs became mainstream. Also, Powell accepted that interest in NFTs has been rising, thus driving a rise in the flow of capital. He also expects when they’ll increase the demand to attract retail and institutional investors to the NFT platform, it will result in more selling and buying digital art and collectibles.
Token Based Loans
Kraken obeys significant exchanges such as Gemini, Binance, Coinbase, and FTX to develop an NFT market with the help of token-based loans as the assets continue to surge in popularity. As reported by Blockchain News, the nonfungible tokens’ market has full-grown to currently worth more than $7 billion.
In 2020, investments in NFTs increased by nearly three times, generating popularity as crypto-assets such as Bitcoin continue to boom. OpenSea, the largest marketplace for NFTs, recently carried out more than $2 billion in trading volume in the last 30 days, according to Crypto data firm DappRada. Though Token-based loans are new in the market.
In conclusion, NFT resellers and creators have made hundreds of millions. In March, artist Beeple loaded digital art records and became one of the most successful living artists when he sold a crypto art piece for almost $70 million.