An anonymous crypto currency user received a US $ 1.1 million ($ 1.7 million) loan from an online stranger and used a NFT as a guarantee.
There is a lot to open a package here – let’s start.
To borrow millions of foreigners
The process took place BazaarA defi platform that facilitates crypto loans and first recognized by an X user Blockchain was looking at the online records.
According to Arcade’s Records in the chainAnonymous debtor US $ 1.1 million ($ 1.7 million) was borrowed from anonymous lender. For this loan, the annual percentage rate (APR) should be made within 40% and repayment within 60 days. Therefore, the debtor has to return US $ 1,172 million ($ 1.82 million) by 1 November 2023.
If this loan is facilitated by a traditional lender, a valuable asset will have to be put on the table as a guarantee – Gollum will be placed as valuable. However, we are in Cryptoland and we are dealing with magic internet money. So, something valuable is acceptable. In this case, the debtor used the Supreme T -shirt collection as a guarantee instead.
Almighty T-shirts are not regular T-shirts-They come from the iconic of Supreme Box Logo CollectionFrom-1994 to 2020, which includes every T-shirt design published by the Street Clothing Brand. Supreme’s with 253 T -shirts Box Logo Collection $ 2 million ($ 3.1 million) by the auction house ChristieIn 2020.
Supreme T -shirts turned into an NFT
Supreme T -shirts were first sent to a trust company. 4K to detect their originality. The company later released an NFT to the debtor (owner of T-shirts), who confirmed the originality and legal ownership of the T-shirts. Later, a loan of US $ 1.1 million ($ 1.7 million) was covered.
If the debtor does not pay back his loans on time, that is to say, the lender may now use the NFT as evidence for ‘use’ physical supreme T -shirts. In other words, the lender would now have a 2 million dollar ($ 3.1 million) Supreme Box logo collection.
The NFT of the Supreme T -shirts represents the ownership of a real -life asset. NFTs are supported by Blockchain technology that holds unchanging transaction recordings on the Internet. Therefore, in this case, if the debtor falls into the default of the loan, it also serves as a legal product that gives the debtor the right to repayment.
Maybe NFTs have a situation of ultimately use
This has not used NFTs as a guarantee for an expensive purchase for the first time. Inside JulyAn anonymous debtor received a loan of USD $ 35,000 ($ 54.200) Patek Philippe Watch it as a guarantee.
Patek Philippe watches are considered the most expensive luxury watches in the world. They cost more than a rolex and Less than a million Of these, it was done since 1839.
In this case, the patek Philippe time used as collateral was valued for US $ 200,000 ($ 309,000), and at the same time the owner of the watch was given an NFT that approves the originality of the watch.
In X, the people in the NFT community came to the fore and allegedly That they witnessed Rare Pokémon cards listed as collateral in Arcade.
“The whole reason I enter NFTS is that my physical art collection is very difficult for the catalog… ebay Basically, all of this highlights, ” in question An x user.
A small part of the NFT community sees NFTs as more than JPEGs with a high price tag for a long time. Now, as people begin to deal with NFTs as a legal representative rather than a speculative toy, perhaps cowardly works of art Jpegs can ultimately have a real life.
But what about…?
Considering that almost all crypto transactions take place on interwebs, the debtor decreases the loan to default and disappears with money in the south of France And Supreme T -shirts?
Inside traditional financeThe lender – for example, the bank – will have a legal right to seize the collateral. It can be a house, furniture or electronics – you put your name.
In the decentralized finance, the internet anonymity will create a difficulty if it will pursue a debtor and take over its existence. However, Blockchain viewers can work with law enforcement officers to monitor the debtor’s crypto wallet address and geographical location.
Blockchain monitoring companies (such as chain) established partnerships with authorities such as FBI to solve financial crimes. In other words, the solution here would not be very different compared to traditional financing.
However, so far, a borrower of an NFT borrower as a guarantee as collateral as a guarantee of cases do not reports.
