Thursday, December 7, 2023

CryptoPunks NFTs owner who canceled Sotheby’s auction takes out $8.3 million loan

After canceling Sotheby’s auction, ox65od, the pseudonymous owner of the CryptoPunks NFTs has now taken out a $8.3 million loan. He has used the CryptoPunks as collateral. This has come to be known as the largest such loan reported to date. Sotheby was slated to offer the 104 high-value CryptoPunks NFTs in February, but the owner of the non-fungible tokens stepped back at the last minute. He then gloated about rugging the auction.

A different holder of CryptoPunks NFTs had secured an $8 million loan in early March. Analysts say both loans were executed through NFTfi – an NFT-backed loan marketplace with a liquidity-providing DAO called MetaStreet.

Ox65od tweeted thanks to MetaStreet for unlocking 8.32m in liquidity on his CryptoPunks, allowing him to retain upside exposure to his collection. The CryptoPunks holder has borrowed 8.32 million DAI stablecoin with a 90-day repayment window, and a 10% APR. This is the latest example of the growing trend of NFT collectors tapping their valuable holdings to unlock short-term liquidity than sell off the collection for a one-time payout.

Over the past year, some holders of the blue-chip NFT collections have been seeking ways to benefit in the short term. NFTfi as a peer-to-peer marketplace connects NFT owners with liquidity providers who can offer loans in Wrapped Ethereum (WETH) or DAI. Arcade and Drops are similar lending platforms that provide such loans.

The CEO of NFTfi Stephen Young highlighted that his marketplace has handled over $110 million across 6,500 – plus loans, with $70 million of that in 2022. The NFT holder can connect a wallet to NFTfi and choose which NFTs they would like a loan on. And providers can make the offer.

Cryptured Team
Cryptured Team
The writers team at is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.

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