CryptoPunk #8348, a one-of-one CryptoPunk and the only one with seven traits, was loaned for $2.75 million in a historic financing deal facilitated by NFT lending platform GONDI.
The loan, which has a six month maturity and a 20% interest rate, must be repaid by the borrower—notable NFT collector Seedphrase—in that time, or he’ll yield his Punk to the lending party.
Originally purchased in May 2020 for 85 ETH ($18,000 at the time), Punk #8348, which has become synonymous with Seedphrase’s online identity, has not changed hands since.
“This is comparable to using a Picasso as collateral in the traditional art world—an asset that appreciates over time but can also unlock substantial liquidity when needed,” said Seedphrase, who is an investor and advisor to GONDI.
“By collateralizing CryptoPunk 8348, I was able to secure $2.75 million in capital without relinquishing ownership of this historic NFT,” Seedphrase explained, adding that, “This liquidity enables me to strategically deploy funds into the crypto markets, particularly as I potentially approach my fourth crypto bull cycle.”
The loan marks the largest ever facilitated by Gondi, one of the leading NFT financing platforms, which has now amassed more than $100 million in net loan volume.
“This $2.75 million loan marks a significant milestone for NFT lending,” pseudonymous Gondi co-founder Burga told Decrypt. “The loan terms demonstrate how NFTs are maturing as a legitimate asset class, and creating more efficient options for digital asset holders to access liquidity compared to almost any other asset globally.”
What are CryptoPunks?
CryptoPunks, one of the earliest and most notable Ethereum NFT collections, have historically fetched the largest NFT loans. Earlier this year, GONDI also facilitated a $1 million loan on a CryptoPunk owned by NFT personality and entrepreneur, Gmoney.
Competing NFT financing protocols Arcade and NFTFi have previously facilitated bundled CryptoPunk loans of $3 million and $8 million, respectively.
“On-chain lending and NFT financing represent a transformative shift in how we think about assets and liquidity,” Seedphrase told Decrypt, adding that, “Unlike traditional financial systems, on-chain solutions are transparent, accessible, and uniquely tailored to digital-native assets.”
Though CryptoPunks are among the most financed collections, Gondi supports 70 whitelisted NFT projects including art from XCOPY, Snowfro, Beeple, and more.
The CryptoPunk floor price, or the cheapest price of an asset listed on a marketplace, has been growing in recent weeks, reestablishing a floor price of more than $100,000 for the first time since June.
