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Friday, January 28, 2022

Kraken Will Issue Loans From New NFT

Jesse Powell, the CEO, and co-founder of Kraken, recently stated in an interview with Bloomberg News that the crypto exchange would be launching an NFT. The marketplace for this NFT would enable users all over to borrow funds against their own NFTs. Powell went on to explain that the company had plans of entering the space of NFTs early in 2022, and is hoping to add the feature that would determine the value of liquidation of an NFT and whether it could be put up as collateral for any form of a loan. 

Kraken’s NFT Marketplace Will provide Loans

Powell stated that if one were to deposit a CryptoPunk on Kraken, they would want it to reflect the value in your account- including the possibility of borrowing funds against that same NFT. Yet, one must also consider that the value of NFTs has always been all over the place, and just a tiny percentage of token owners actually hold a digital collectible which is valued for around as much as CryptoPunk, whose floor price is 66.9 Ether, or $273,673. 

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According to Powell, the utility of NFT would definitely explode next year, which could be good for the marketplace. Additionally, Kraken also recently got hold of Staked, an infrastructure platform that would allow for non-custodial crypto staking, in a major effort to attract most new investors. The clients of this company would now be able to earn rewards in crypto and yield while they are retaining control over their own digital assets. 

Kraken was created in 2011 and has since then turned into one of the largest crypto exchanges in the world, where it ranks among the top in terms of average volume, liquidity, and digital asset reserves, as stated by data received from CoinMarketCap.

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