Category: News

A very long story short, we are in a bit of a crisis here, but more importantly, what do we need during a crisis? Well, money. But remember how your dad forwarded that “compound interest” YouTube video to you right after you got your first job? Exactly. So, now you don’t have much liquidity but a shit load of investments? Although, this basically means you can either sell your investments or can take out a loan against them and magically make money appear. 

Ideally, intelligent people, maybe not me, but intelligent people prefer collateralizing their assets to get loans so you can pay it off once the market is green again while also being able to keep those assets. However, given that Bitcoin is below $20k and S&P500 has also recently sunk by nearly 4%, what the F do we have left to take out a loan against? Because honestly, if I were a bank, I would call security if, right now, you asked me for money against your crypto or equities portfolio. 

Crypto Loans Against NFTs: How & Where? 

Yes, you can take a loan against your NFTs, surprise motherfuckers! While it is not a new feature, it has become considerably prominent in the industry as cryptocurrencies continue to bleed. 

But wait, how does it work? Okay, so NFT lending allows you to simply lend out your tokenized goods as collateral to borrow crypto or fiat. And where do I do it? For starters, you can simply hop by the peer-to-peer NFT lending marketplace NFTfi. But first, let’s break down what all can we do on an NFT lending platform? Of course, you can get a loan against your NFT but you can also earn attractive yields if you are lending out your tokenized goodies.

But like I already said, this is not a new concept. In fact, in the case of NFTfi, they started their NFT loans feature back in May 2020, using the NFTfi DApp (Decentralized Application). 

Furthermore, for loans against your NFTs, you may even go to a crypto exchange that facilitates it. For instance, Nexo’s platform recently became popular as it began lending against NFTs on Arcade, which is a lending marketplace just like NFTfi. Last month itself, Nexo claimed to have arranged a $3.3 million loan through the Arcade, backed by two CryptoPunks Zombies. Oh yeah, did i forget to tell you that you can collateralize both, your Apes and Punks on Nexo along with other projects? Unless Yugalabs buys them too, then maybe you can just do Punks, Apes, and Meetbits. 

NFT Loans: A Necessary Evil? 

On one hand, NFTs as collateral for NFT loans is a blessing in plain sight, not disguise. However, on the other hand, the asset is highly volatile which creates more leeway for the loan process to be rather unstable, leaving the borrower in a financially insecure position. Awkwarrrdd… Okay, let me explain using an example, story time! 

So last year, this NFT collector took out a loan worth over $12,000 in ETH on NFTfi. The borrower collateralized his ‘Elevated Deconstructions’ NFT which was roughly worth $39,000 when the borrower sought the $12,000 loan against it. But an unfortunate plat twist took over and within the loan period of 30 days, ‘Elevated Deconstructions’ became worth $300,000 when the OG Snoop Dogg took it under his wing. Following this, the borrower failed to comply by the terms and conditions of his loan agreement. And all he had left was debt alongside losing a high-performing asset.

Or most recently, the worries about people who collateralized their NFTs on BendDAO have started to arise. Several Bored Apes and Mutant Apes are on the verge of being liquidated if they don’t repay their loans or interest. Active trade Cirrus wrote a great thread about it on Twitter:

There are currently 32,267 ETH ($59,048,610) worth of NFTs being used as collateral for loans on BendDAO aloneFor the first time ever, a lot of these are at serious peril of liquidationA thread on the single biggest risk to the NFT market that nobody is talking about— Cirrus (@CirrusNFT) August 17, 2022

On the flip side, a BAYC whale called FranklinisBored, made a killing leveraging BendDao’s NFT loans to gather more apes.

Bottom Line

Taking loans against your NFTs can be dangerous. It’s a double-faced coin, you take an increased risk on an already volatile asset. However, if you play it right, like Franklin, you have a chance to grow a lot faster.

Like always, understand the risks of your moves in this space. Stay safe and keep grinding!

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One of the biggest surprises for the NFT space in 2022 was the GoblinTown NFTs. Although the year began with a number of NFT collections mooning and VC money pouring into NFT projects, nothing was as odd as GoblinTown. No one could have imagined that a free mint NFT collection would skyrocket to millions of dollars in sales. And that too without hype, a roadmap, or a huge following. In fact, all they started with was a Twitter account with a few thousand followers. Their account now stands at over 123K+ followers.

And not to mention the project’s goal. The collection was made just to troll anyone who thinks Bored Apes, Mutant Apes, Moonbirds, Clone X, and Invisible Friends are serious collections. The idea behind GoblinTown, in some ways, was to make it an anti-NFT project but its rapid popularity made it the most desired NFT collection. So, while it launched as a free mint, it is now one of the most successful NFT projects. GoblinTown has now become a part of the culture, with people acknowledging it as an experience.

From Free Mint to 9 ETH Floor

Any NFT project you’ve come across has the same story: users mint NFTs for a price, and then the floor either moons or crashes. Adding to this are some obvious factors like marketing, airdrops, community building, utility, etc. Ultimately, all of these ideas contribute toward the success of an NFT collection and thus the price. However, in the case of GoblinTown, things were different. These 10,000 different Goblin PFPs started as a free mint, with people who purchased at public auction just having to pay the transaction fee. 

But, things changed when Goblins took it to the crypto Twitter with their weird spaces, boosting the floor price to a massive 9 ETH. This was also accompanied by the transaction volume mooning to over 40,000 ETH. The most expensive goblin sale was a one-of-one orc NFT that sold for 77.75 ETH ($144,600) on LooksRare. 

Adding spice to this craze was The Sandbox game which paid 26 ETH ($48,000) for a one-of-one GoblinTown NFT. The collection sparked a lot of interest in several communities. According to OpenSea data, the GoblinTown collection now has 4,600 holders, with a floor price of around 2.8 ETH.

McGoblin Burger NFTs – The Next Odyssey   

GoblinTown launched without a roadmap and continues to do so today. However, the project appears to be heading in the direction of airdropping a new collection as the next phase of GoblinTown NFTs. The McGoblin Burger NFTs is a new collection that users can mind freely by all existing NFT holders. To your surprise, the new collection is now trading at a floor price of 0.9ETH, with a total transaction volume of over 3,800 ETH. The Goblin’s next Odyssey continues! With over 3800 holders, the collection has already achieved a major milestone. The collection will likely add more utilities for benefiting holders, thus hinting at its next move. 

The Eerie Backstory of GoblinTown 

Every project or idea has a backstory, and GoblinTown NFTs were no exception. They do, however, have a weird story that has brought them to where they are now. The plot of GoblinTown began strangely, showcasing artworks of crooked-faced goblins babbling nonsense. Their 193 different features and descriptions provided on OpenSea are all Goblin blurbs. And adding to this confusion was the unknown crew behind GoblinTown Twitter spaces that were completely hosted in Goblin-Gibberish.

All of this weirdness and ambiguity aided its marketing efforts, allowing the collections’ prices and volumes to soar. Even though the team was kept unidentified, there were rumors that Michael Winkelmann alias Beeple was a member of the Goblin Town team. Yuga Labs (the web3 business behind BAYC) was also rumored to be involved in the project because their purported pitch deck featured Goblins on the roadmap.

All of the rumors, however, were dismissed when the team behind Goblin Town revealed themselves as members of Truth Labs in a video. Truth Labs, the company behind Illuminati Collective and The 187, was the real goblins behind the project.

What Next? 

The entire idea began with so much confusion and weirdness that no one is able to foresee what will happen next for the project. There are no utilities, frameworks, or documentation. In fact, there’s literally nothing to look forward to. Although the team is completely doxxed, there is still confusion and, obviously, no roadmap. The whole NFT Twitter is just speculating on its next plans while the GoblinTown NFT holders are collecting their Free McGoblin NFTs. 

However, you need not worry about GoblinTown’s next move. Follow us at Airdrop Alert as we have got you covered with the latest information about everything NFTs including GoblinTown’s next big move.

Stay Tuned Goblins!

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