if only you knew how silly things are about to get
insane new home sales print hahahah
cutting rates into a 6% of GDP fiscal deficit and re-accelerating economy is gonna bite us in the ass very hard in 2026 but im gonna make money in the mean time
own hard assets
Why Are People Taking NFT Loans? 🤔
Whether you love or hate NFT lending, you can’t deny it’s becoming a go-to option for many collectors—especially those holding high-value NFTs.
But why is this trend picking up steam? Let’s dive in.
NFA, this is just what I've seen. DYOR.
1️⃣ Unlocking Liquidity for Real-Life Expenses:
Collectors sometimes need cash for real-world expenses but don’t want to sell their prized NFTs at subpar market terms. Here’s where NFT loans come in handy.
Imagine you own a Punk and need around $30K USDC for an urgent expense. Instead of selling, you take a 1-year loan with a 21% APR. (Note: recent offers for Punks at 30K for 1 year at 21% net APR were available). You get your immediate need covered and, if you repay the loan on time, you keep your Punk. No forced sale, just quick liquidity.
2️⃣ Strategic Market Plays:
Another reason collectors are embracing NFT loans is to play the market via speculation. Say you’re bullish on BTC, ETH, or SOL, but you’re low on liquid funds.
Instead of selling your NFT in a down market, you take out a loan.
For instance, you borrow $30K USDC on your Punk at a 21% APR. If you think your investment will outperform that 21% over the next year, you can pay back the loan, reclaim your NFT, and potentially pocket the profits. This approach has also been used airdrop farming and other speculative plays.
3️⃣ Hedging Against Market Downturns:
Some collectors use long-term NFT loans as a hedge—or even a stop-loss—against falling NFT values. Here’s how it works: you buy a Punk for 22 ETH and take a 12 ETH loan against it. If the market tanks and the Punk’s value drops below 12 ETH, you might default on the loan.
Sure, you lose the NFT, but your exposure is capped at the loan amount plus interest, not the full 22 ETH. It’s a way to manage risk, albeit at the cost of the APR.
NFT loans are becoming a key tool for collectors, offering flexibility and strategic options in a rapidly changing market. Whether for liquidity, market plays, or risk management, these loans are shaping how collectors manage their portfolios.
Curious what you can get w/ your NFTs? list them on @gondixyz.
With the BoJ put in place, the Fed fully set for at least a 25bps cut in September, and other Global CB's already cutting, we have now reached vol controller nirvana: a global coordinated easing cycle. When all global central banks ease at once, the rate differentials remain constant which makes FX issues like we've seen this week much less likely.
🧵1/13 "The Winds of Yawanawá: Fabulous Triptychs" by @refikanadol masterfully bridges AI and generative art with Yawanawá heritage and symbolism. RT to support the cause! Let's explore "The Breath of the Ancients" 🌬️🧵1/13👇
Both #gold and #Bitcoin hit all-time record highs today. But while gold ETFs also closed at new all-time record highs, the #BitcoinETFs all had their worst days since going public, dropping by over 8.5% on the day and over 14% intraday. Gold broke out. Bitcoin made a double top!
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