Genesis Global Capital has completed one of its first purely NFT-backed loans for $ 6 million to Meta4 Capital, a Miami-based Web3-focused investment management firm. This loan is notable not only for its amount, but for using only non-fungible tokens (NFTs) as collateral rather than including a broader liquid collateral. Meta4 operates as a VC of NFT backed by Andreessen Horowitz, specializing in the acquisition of allegedly rare and historically significant NFTs.
- “Ricardo the Rebel Reindeer of Santa Claus” is the NFT with which Iboo Agency ventures into the metaverse independently
Proceeds from the Genesis loan were used to finalize Meta4’s purchase of three NFTs that were part of Sotheby’s October NFT “Natively Digital” auction: the $ 3.4 million Bored Ape Yacht Club # 8817; the Rare Pepe PEPENOPOULOS, of USD 3.6 million; and an NFT from Mitchell F. Chan of FingerprintDAO of $ 1.5 million. These acquisitions acted as bridge capital until Meta4 closed a Series B round on December 1 for an undisclosed amount. All Meta4 investors received a proportional share of each item purchased.
Brandon Buchanan, CEO and co-founder of Meta4 Capital, told Cointelegraph that loans backed by NFT provide a better way to manage the risk of the underlying asset, usually Ether (ETH).
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.