News of the NFT owner who placed their assets as collateral for an $8.3 million loan is currently making rounds around the NFT ecosystem.
Legend Of ox65od – The Story So Far
In February 2022, the famous auction house Sotheby’s was slated to offer a lot of 104 high-value CryptoPunks NFT, an Ethereum based NFT launched in 2017. The collection was set to bring in an estimated $20 million to $30 million.
Unbeknownst to the auction house, however, the owner of the CryptoPunks NFT, a person known only under the pseudonym “ox65od”, had other plans, and minutes before the auction started, ox65od announced their withdrawal of the lot via this:
In a subsequent tweet, the NFT owner posted a meme mocking the auction house, inferring that rugging Sotheby’s is a better way to take their digital asset mainstream.
Barely a month after this incident, ox65od is once again in the news and on the lips of every stakeholder in the NFT ecosystem, this time for taking out a loan of 8.3 million dollars using their CryptoPunks set as collateral.
The loan is the most significant NFT-related loan reported to date. “Thanks to the chads @metastreetxyz for unlocking 8.32m in liquidity on my CryptoPunks while allowing me to retain upside exposure to my collection,” they announced via this:
NFTs: The Gift That Never Stops Giving
ox65od’s loan is yet another example of a growing trend amongst NFT collectors who seek to tap into their valuable holdings to unlock short-term liquidity rather than sell off their NFT outright for a one-time payment.