Ordinal Bored Ape Yacht Club

<ul><li>NFT borrowers face severe losses in a rising trend, cautioning against using digital art assets as loan collateral.</li><li>Loans secured by NFTs result in unforeseen deficits, spanning from $26,756 to $194,861 when borrowers falter in meeting repayment deadlines.</li><li>Prominent NFT platforms witness substantial liquidations, with Bored Ape Yacht Club loans losing $754,793, revealing risks even for top collections.</li></ul>An alarming trend has emerged in a daring venture into the world of Non-Fungible Tokens (NFTs), where art and technology converge. NFT borrowers, enticed by the allure of quick crypto gains, have faced devastating consequences due to liquidations, leaving them reeling with substantial losses. These unfortunate events are cautionary tales about the risks of leveraging NFTs as loan collateral.According to a recent <a href="https://www.coingecko.com/research/publications/worst-nft-loan-liquidations?utm_campaign&#61;Data%2BVisualization&amp;utm_medium&#61;social" rel="noopener noreferrer nofollow">report</a>, disheartening figures have come to light in the 25 most distressing NFT liquidation cases thus far. Once optimistic about using their NFT holdings as a financial safety net, borrowers discovered that failure to meet loan repayment deadlines could lead to unprecedented losses. The losses ranged from $26,756 to a jaw-dropping $194,861 per debtor.The impetus behind these cataclysmic losses stems from an inability to meet loan obligations promptly. Paradoxically, borrowers faced liquidation even when the NFT collateral exceeded the debt. The grim reality showcases a dichotomy wherein borrowers could have potentially fared better by directly selling their NFT assets instead of succumbing to the perils of loan default.The scale of devastation becomes starkly evident when considering the proportion of NFT collateral value lost during liquidations. Ranging from 15.3% to a harrowing 91.3%, with an average of 46.1%, these numbers underscore the gravity of the predicament. It&#39;s an eye-opening revelation highlighting the perilous terrain borrowers traverse when seeking to capitalize on NFT value.The NFT marketplace landscape is not exempt from these unsettling narratives. Most of the worst NFT liquidation episodes occurred on NFTfi, a platform that facilitated these unfortunate events. However, a singular exception arose with the Bored Ape Yacht Club (BAYC) #3455-backed loan, which ended on X2Y2.Read full article at <a href="https://cryptotale.org/nft-loan-liquidations-expose-risks-debtors-lose-big-in-unprecedented-collapses/" rel="noopener noreferrer nofollow">CryptoTale.</a>

NFT Loan Liquidations Expose Risks: Debtors Lose Big in Unprecedented Collapses

CryptoTale

Other articles published on Aug 17, 2023

Cardano Takes Big Step Forward as Governance Testnet Website Launches

“🔻Crypto Crash Alert!🔻: Unraveling the Dramatic Dip in Today’s Market”

PayPal halts crypto purchases in the UK amid FCA crackdown

Demystifying AI: An In-Depth Exploration of Artificial Intelligence

Beware: Trader Anticipates Major Bitcoin Price Swing, Predicting a Potential Dip to $19K!

Tech leaders, including Sam Altman, issue a warning that artificial intelligence (A.I.) poses a r...

Join our free newsletter for daily crypto updates!