Crypto exchange Kraken’s new NFT marketplace to issue loans
Jesse Powell said the exchange will expand into a marketplace for nonfungible tokens and NFT-backed loans beginning in 2022.
Kraken founder and CEO Jesse Powell recently shared in an interview with Bloomberg News that the crypto exchange will launch a nonfungible token (NFT) marketplace that will enable users to borrow funds against their NFTs.
Powell explained that the company plans to enter the NFT space in early 2022 and hopes to add the feature to determine the liquidation value of an NFT and if it can be put up as collateral for a loan.
“If you deposit a CryptoPunk on Kraken, we want to be able to reflect the value of that in your account," said Powell. "And if you want to borrow funds against that."
The value of NFTs, however, is all over the spectrum and only a small percentage of token owners hold a digital collectible valued for as much as a CryptoPunk, whose floor price is 66.9 Ether (ETH) or $273,673 at the time of publication.
Additionally, Kraken recently acquired Staked, an infrastructure platform that allows for non-custodial crypto staking, in an effort to attract new investors. Kraken clients will now be able to earn crypto rewards and yield while retaining control over their digital assets.
Kraken was founded in 2011 and has become one of the largest crypto exchanges worldwide, ranking among the top in terms of average liquidity, volume and digital asset reserves, according to data from CoinMarketCap.
Kraken’s announcement demonstrates how NFT-backed loans are becoming increasingly commonplace as more DeFi platforms, such as Arcade and Nexo, are offering this new loan model. As Cointelegraph recently reported, Arcade closed a $15 million funding round in December as part of a broader effort to grow its offerings and attract more investors to its collateralized NFT platform.
A Million Ways to Earn Crypto; How Crypto Investing is Getting a New Face
The demand for crypto in the wider world is well on its way to being filled in ways that go beyond just crypto trading. As the industry grows even bigger, crypto lovers will be spoiled for choice at all the ways they can earn crypto.
When a lot of us think of making money from cryptocurrency, our minds might go to trading. After all, the internet is always abuzz with the latest token that is going ‘to the moon’ and how its investors will see a return. With millions of more people investing in cryptocurrency these days, there is an emphasis on retail or institutional trading.
At the same time, the blockchain and crypto space is nothing if not innovative and has created many new avenues for inverters to earn cryptocurrency. Among these include loans, interest-bearing accounts, lotteries, and so on.
Why Many Ways Are Needed
The cryptocurrency industry is dynamic and so should be the ways consumers interact with it, including how they earn money from it. Additionally, not every crypto investor might want to deal with the volatility of the industry and might, instead, want to opt for earning interest or offering loans.
With this demand existing in the market, more companies have sprung up to meet this need. Take Youhodler, a platform that not only acts as a crypto exchange but also offer interest-bearing accounts, loans, and so on. This means that whichever way of making a profit from crypto a consumer prefers, they will likely find something that they can use.
On the crypto exchange side, Youhodler allows for the exchange of cryptocurrency, stablecoins, and fiat currency in real-time and for low fees. Those who want to buy cryptocurrency can do so using their SEPA bank account, debit cards, or credit cards. The connection with the traditional bank accounts is in line with Youhodler’s assertion that they are trying to compete with banks but to work alongside them.
The tokens that users have, either from buying directly on the platform or transferred, can then be put in one of Youhodler’s interest-bearing accounts. These accounts exist for both stablecoins and general cryptocurrencies. With the former, users can earn up to 12.3% per year and with the latter, users can earn up to 8.6% interest per year.
This represents a better deal for the investor that simply HODLing without any interest to be earned. Finally, Youhodler offers crypto-based loans by using any of the top 40 cryptos on the market as the loan collateral with the highest loan to value ratio. Remarkably, Youhodler allows for loans to be taken out in fiat currencies such as EUR, USD, CHF, GBP or in stablecoins.
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28 дек 2021
