Crypto Investor GMoney Pioneers $1 Million NFT Loan

Cryptocurrency investor GMoney recently made headlines by securing the world’s largest on-chain non-fungible token (NFT) loan for a single CryptoPunk, amounting to $1 million.

The transaction took place on Gondi, a peer to peer NFT lending protocol that connects NFT owners with liquidity providers. GMoney leveraged the platform to initiate a six-month loan against one of his valuable NFT holdings — CryptoPunk #8219. 

The Ethereum blockchain was used to execute the entire process, which demonstrated the autonomy of such transactions.

The mechanics of the loan are straightforward: the NFT collateral, once placed in an escrow contract, can only be reclaimed by GMoney upon full repayment of the loan, including a 14% interest rate, amounting to $70,000 over the loan’s duration.

While the purpose of the loan remains undisclosed, GMoney hinted on the Rug Radio show, a prominent daily discussion on Web3, that the capital would serve as “a bridge between transactions.”

GMoney’s consistent investments and holdings have gained him recognition in the crypto- and NFT community. In 2021, he participated in the CryptoKitty contest and borrowed $25,000 from it. CollaborationsPunks Comic, Bored Ape Yacht Club NFT, and Adidas.

The concept of NFT loaning has attracted considerable attention within the NFT industry, leading to projects that develop tailored solutions. For instance, Blur, the leading NFT marketplace, has developed its lending protocol called “Blend,” which accommodates various collateral types, including NFTs.

NFT lending opens up a whole new world of possibilities for both lenders as well as borrowers. Lenders are able to earn passive income through the temporary lending of their NFTs. This maximizes the utility of these assets. On the borrower’s side, NFT lending provides access to coveted digital assets without requiring outright ownership, facilitating participation in various digital ecosystems without significant upfront costs.