Renowned NFT collector GMoney has taken a seven-figure loan, borrowing $1 million USDC against one of the rarest assets in the PFP (Profile Picture) collection, CryptoPunk 8219.
According to GMoney, he took the loan because he wanted to prove mainstream media, who keep saying NFTs are dead, wrong.
A Seven-Figure Loan To Prove A Point
The loan taken out by GMoney is the largest amount borrowed against an NFT on the Gondi platform. Other major loans include CryptoPunk 9707, with a loan of $150,000, and Autoglyph 327, with a loan of $130,000. Speaking on Rug Radio’s Live FOMO Hour show, GMoney talked about an article published in Rolling Stone that said NFTs are worthless. This, he said, made him think how better to prove them wrong than taking a million-dollar loan against an NFT.
“Here we are, four or five months removed from an article in Rolling Stone saying that NFTs are worthless. And so I was like, ‘Well, what better way to show that these are not worthless if I can get a million-dollar loan against an NFT, right?”
GMoney is the pseudo-anonymous founder and CEO of 9dcc, a connected fashion brand. He is also well known in crypto circles as an individual who has made significant bets on high-value assets. In the process, he has garnered a sizable following, making his PFP collection one of the most recognizable in the crypto space.
GMoney’s Collection
GMoney’s CryptoPunk 8219 is just one of 24 Apes that he holds in his complete collection of 10,000 NFTs. Some CryptoPunks have sold for as much as $10 million in the past. Currently, CryptoPunks start at a base price of nearly $140,000 worth of ETH on secondary marketplaces. However, sale prices of rare assets in the collection can fetch a sizable amount, considerably larger than the base price.
Loan Secured On Gondi
GMoney secured the loan on Gondi, one of several prominent NFT lending protocols. These protocols match NFT owners with liquidity providers in a decentralized environment. Holders can take out a loan and put the NFT as collateral, with the counterparty floating the cash, taking a bet they would be able to earn some interest on the transaction or take control of the NFT in the event of a loan default.
This particular loan was for $1 million worth of USDC at an interest rate of 14% for a period of 180 days. This means GMoney would have to pay out over $69,000 in interest each month for the next six months.
“ICONIC LOAN ALERT $1,000,000 USDC loan originated against the one and only Ape Punk #8219 from @gmoneyNFT Loan Terms: 14% APR for 180 days Gondi is proud to help iconic assets secure loans. We are just getting started! Thank you for paving the way, G.”
GMoney also revealed he is an investor in Gondi and rival NFT lender Arcade. However, he stated that lending platforms such as Gondi or Arcade do not require any special connection, reputation, or proof of real-world identity. Any owner of a valuable NFT can take out a loan against the NFT in a trustless manner.
“When you think about the asset appreciation we had last cycle—that was without credit, right? What happens when you introduce credit into the system? You start to see some pretty crazy stuff happen.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
