Binance to launch NFT LOANS, the future of asset collateralization has NFTs all over it

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Some people probably think NFTs are dead but what they don't quite understand when it comes to NFTs is that these types of assets are not meant to have a definitive value on their own, they are widely meant to function as a "virtual" thus flexible representation of a secondary asset.

This means that a mere NFT on a blockchain is really just a nonfungible token with zero specialties. An NFT only becomes valuable when it represents something because only then does it have a use for its non-fungibility so NFTs cannot be dead when things like certificates, legal documents, agreements, partnership policies, property rights, warrants, the long list continues that can in fact be turned into an NFT in a bid to make it much more flexible to utilize.

That said, Binance is launching a lending platform where users can finally have some sort of way to extract temporary value from their ape jpegs and donkey shoes, lmao.

I particularly do not care what NFT projects people dump their asses into, without value-generating tokenomics, it all will just go to shit and that is guaranteed. That said, at least the risk of losing 100% could potentially be offset or simply a way to build more value for retaining one's investment has just been opened up.

Binance NFT is excited to announce the upcoming launch of Binance NFT Loan at 2023-05-26 11:00 (UTC), where NFT owners can secure an ETH loan by using their NFTs as collateral. Users can enjoy greater flexibility on their NFT assets, and retain the potential long-term value of their NFTs without having to sell them.

This overcollateralized, open-term, and peer-to-pool loan feature offers distinct Loan-to-Value (LTV) ratios for each NFT collateral-loan pair position.

As of 2023-05-26 (UTC), Binance NFT Loan supports Ethereum (ETH) loans only, and NFTs from the Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), Azuki, and Doodles collections as collateral options. More borrowable assets and NFT collateral options will be available on Binance NFT Loan in the future.

Apparently, the loan amount will depend vastly on the NFT being used as collateral and as expected, only the most expensive and exclusive big boys are currently supported, not that it matters much, the end product is really all about having the flexibility to tokenize real-world assets as NFTs and the use them as collaterals for loans or other diverse investment products.

We are already seeing JPmorgan all up on the quest to tokenize traditional assets which I believe has a lot to do with stocks so this will be primarily the deployment of fungible tokens which would most likely be centrally regulated by the chase, I mean, it's said to be on a company built blockchain, Onyx?

Yeah, that's the one. It's all about building more flexibility into the current financial system and tokenization really allows these companies to tap into a whole new ecosystem of traders and investors, heck maybe stocks will now be traded 24hrs/7 days(in a very straightforward way), because with crypto, that seems to be the case of every asset built on the network, so we could be seeing a major shift in how the traditional assets markets are traded and thus influenced.

Some hot-ass future we moving into, better have some popcorn ready cause this should be entertaining.



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I will not make a loan with a centralized exchange like Binance. What is cool is the concept to make a loan with an NFT that might come as an option in the crypto industry.

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