Abstract
Real world art loans usually take the form of revolving credit lines with creative visual arts collateral. These loans utilize a number of techniques to address the art world’s lingering problems with authentication, changes in market value, the need to ensure first-class security for the artwork, and mitigate the risk of theft or loss. Historically, default risks on these loans have generally been considered relatively low, given the easiness and often predominant identity of the borrowers under these credit facilities.
In order for institutional lenders to have a sufficient level of convenience in considering loans guaranteed by NFT, a number of real-world techniques for evaluating credit applications need to be considered and somehow considered. These considerations include ways to deal with risks related to origin and authenticity, periodic evaluations to monitor changes in value, refining security interests, and insurance against theft or loss.
NFT (NON FUNGIBLE TOKEN)
Non-fungible tokens (NFTs) seem to have exploded out of the ether this year. From art and music to tacos and toilet paper, these digital assets are selling like 17th-century exotic Dutch tulips — some for millions of dollars.
But are NFTs worth the money — or the hype? Some experts say they’re a bubble poised to pop, like the dotcom craze or Beanie Babies. Others believe NFTs are here to stay, and that they will change investing forever.
An NFT is a digital asset that represents real-world objects like art, music, in-game items and videos. They are bought and sold online, frequently with cryptocurrency, and they are generally encoded with the same underlying software as many cryptos.
NFTs exist on a blockchain, which is a distributed public ledger that records transactions. You’re probably most familiar with blockchain as the underlying process that makes cryptocurrencies possible.
Specifically, NFTs are typically held on the Ethereum blockchain, although other blockchains support them as well.
An NFT is created, or “minted” from digital objects that represent both tangible and intangible items, including:
• Art
• GIFs
• Videos and sports highlights
• Collectibles
• Virtual avatars and video game skins
• Designer sneakers
• Music
Using NFT as a collateral for LOAN
Asset price data on the Strip platform is sourced directly from NFT markets such as Rarible, Superare, Opensea and Wazirx that we will be working with. We will not make arbitrary changes to pricing information. However, we reserve the right to adjust the rating of the NFTs based on our own risk assessment.
NFT’s owner value proposition follows the same principles in any credit / credit market. Access to capital (which is lent against a secured asset) provides owners with access to liquidity for a variety of purposes, such as: B. pursuing other investment opportunities, incurring personal expenses, or guarding against market movements.
The possibilities of assets that can be tokenized through the NFT standard (ERC720 / 1155) are limitless, with few use cases such as real estate, art, certificates, digital domains, music and financial assets.
Strip will provide owners of this asset class with access to capital to pursue other opportunities while retaining ownership of their coveted NFTs.
About Strip Finance
Strip Finance is building a collateralized NFT borrowing and lending marketplace initially launching on Binance Smart Chain. The platform will enhance liquidity in the NFT market by providing users with an option to retain ownership and yet be able to derive liquidity.
Website — https://www.strip.finance/
Twitter — https://twitter.com/StripFinance
Telegram — https://t.me/stripfinance
