CryptoPunk #8348, a unique one-of-one NFT known for being the only CryptoPunk with seven traits, has been used to secure a $2.75 million loan, marking one of the largest on-chain financing deals in history.
The transaction was facilitated by NFT lending platform GONDI, with notable NFT collector Seedphrase using the Punk as collateral. The loan comes with a six-month term and a 20% interest rate. If Seedphrase fails to repay the loan within the agreed period, ownership of the CryptoPunk will transfer to the lender.
Originally purchased for 85 ETH (approximately $18,000 in May 2020), Punk #8348 has become synonymous with Seedphrase’s online persona and has not changed hands since its acquisition.
“This is comparable to using a Picasso as collateral in the traditional art world—an appreciating asset that can unlock significant liquidity,” Seedphrase explained. He added that the funds will be strategically deployed in crypto markets, noting his potential approach to his fourth crypto bull cycle.
GONDI co-founder Burga highlighted the significance of the deal, stating:
“The $2.75 million loan demonstrates how NFTs are maturing as a legitimate asset class, offering digital asset holders efficient liquidity options compared to almost any other asset globally.”
The loan is GONDI’s largest to date, contributing to its $100 million in net loan volume. The transaction underscores the evolving financial applications of NFTs, showcasing their growing credibility as collateral for substantial loans.
