The money wouldn’t be a problem for NFT lovers if they can avail loans in cryptocurrencies, without going through rigorous documentation, and buy NFTs they want because Nexo has finally inaugurated an NFT loan facility for the interested persons.
Nexo is a famed name within the crypto community particularly because the company offers lending facilities. What makes Nexo interesting and unique from other lending firms is that it offers loans that are backed by cryptocurrencies. If the loan application is accepted then the loan amount in cryptocurrencies is disbursed to the loan seeker instantly.
Nexo has turned the tables today when it announced the opening of a new lending desk solely for Non-Fungible Tokens (NFT).
In a matter of days, the NFT market has grown into a multi-million dollar business in 2021. Some of the best sellers of NFTs were Bored Ape Yacht Club, Meebits, and Cryptopunks. All of them have successfully sold multiple NFTs against whom they have collected hundreds and thousands of dollars per NFT. While some NFT projects have sold one single NFT even for millions of dollars. Looking at this huge potential of business in the NFT sector, Nexo too has decided to lend loan facilities to NFT purchasers. However, the structure of the loan facility is based on submitting NFTs as collateral and receiving crypto funds as loans.
For the time being, Nexo is accepting only the popular NFTs such as Cryptopunks, Meebit, and BAYC. Against the security of NFTs of any of the three NFT collections, a loan seeker can obtain a loan up to 20% of the NFT amount. The disbursement is instant and Nexo will not be selling the NFTs. There shall be no inquiries, no paperwork, or even credit history is not needed for someone to obtain the loan. Before the maturity of the loan amount, Nexo will not be authorized to sell the NFTs given as security. In addition, if the value of the NFT changes during the course of the loan period, not even then Nexo would be entitled to sell the security.
The new lending desk has been incorporated and Nexo is expecting applicants to submit their loan requests and queries. Specialized forms too have been made available which will be required to be filled in by the interested individual or company.
The website of Nexo now hosts a public message which suggests that NFT loans are just the beginning. The firm is looking even for more to cater to its potential clients, said the message. Perhaps this could be yet another ground-breaking facility introduced in the continuously growing NFT market.
Nexo’s decision seems to be about time as there were talks within the financial institutions about joining NFT and metaverse. Perhaps, Nexo has analyzed the future and therefore wants to be the first before the financial institutions come in.
