How NFTs are used to make loans – Cryptocurrencies

* David Z Morris

Michael Levy is a cryptocurrency trader who invests in non-fungible tokens (NFTs). It is currently releasing a tool for NFT-recovery called Flowty. But Levy is not a stubborn “crypto race” – and that’s what makes him important.

Instead of coming into the market from professionals, like many leaders and designers today, he has abandoned his passion by collecting toys and going to other the.

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“Before I saw the NFTs, the biggest passion I had was for the unification of MLB (Major League Baseball) bobbleheads,” he told CoinDesk. “A friend of mine and I would pick up a new stadium every year and go there for a bobblehead game.”

This, of course, was before Covid-19 spread everywhere. Like everyone else, Levy got bored during the closing stages at the start of the episode. But unlike the seed traders who turn to Robinhood or Coinbase to make a fortune. sssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssss shenas shenas shenas shenas shenas shenas

“September 2020,” he said, “I saw a tweet that said the NBA had announced and released digital devices.” He immediately tried to sign up for the “NBA Top Shot,” the league’s NFTS streaming video game, but the platform was still in closed beta at the time. Levy said he received the invitation by sending a message to the Top Shot Group directly, accessing when “maybe 200 or 250 active users. Too early.”

Top Shot quickly became the primary target of NFTs, making for a very interesting experience. Prices soared in early 2021, but soon recovered as a result of a surge in non-fungible cooling tokens. Levy’s first involvement paid off. But it was not the cryptocurrency experience that opened his eyes to the opportunity.

“I look at him as a card player growing up,” he said. “In many ways, (NFTs) are card sports 2.0. They are more shared and important without borders.”

Of course, the key difference is that you can hold the head or volleyball card in your hand. But as one veteran writes, Levy does not think much of a difference.

“If you break down what makes you physically beautiful … more, if not all, of these principles apply to digital devices,” he said. “What makes it useful is not the card body, or the image, or the reaction the image evokes. It ‘s just because it tells people around it’ I’m a fan. Ball, I like the rare stuff and I like this player and I like this team ‘”.

But cryptocurrency also makes it possible to do crazy new things with these devices, as well as easily use them as a commercial product for loans. Levy’s new Flowty platform aims to support this, and its peer-to-peer nature part talks about the big challenge of how to value this digital asset as liability. The answer is simple: Flowty lets users decide.

“You choose NFT from your product and enter the no [empréstimo] that you are looking for. You could say, “I have an NFT. I think it’s worth $ 5,000. I want to borrow $ 2,000 and I’m willing to pay 3% in 30 days’. And if [um credor estiver] Satisfied with the request, they are free to help with loans. Borrowers then get the loan back or get the property. [NFT], and the outsider can not do anything bad. It is all without trust and justice. “

There is concern that the finances of NFTs could have an economic impact that could not be seen or lead to increased risk. But, as Levy points out, once you get past technology, Flowty does nothing radical. “You can bring a clock or paint a mortgage and get a loan. It is a very similar industry. “

One uncertainty Levy sees in the NFT universe is the challenge of “switching” assets from one blockchain to another. Flowty, like Top Shot and CryptoKitties (kitty collection), was created by a blockchain called Flow. “As a hobby, Flow is affordable and easy to use, and in line with these major brands,” Levy said of network values.

But the ease of use comes with exchanges, including “releasing some classification and security,” Levy said. This can be reduced by connecting to other blockchains, but recent major hacks on the platform that connect networks, such as Ronin and Wormhole, have cast doubt on the potential of interconnected.

“It’s just the recent injustices (the result of mental illness being more important than the recent events, not considering the whole history), but more the person said that if we can not solve the bridge problem, it will not end in the future. [cross-chain]”Said Levy. If this study is held, Levy believes that there will be a long-term partnership because the separation chains are ineffective. “There will be competitions and other options, but maybe a group of four or five will appear over time,” he wrote.

Anyway, he thought Flow (along with his library) would be one of them.

* David Z Morris is a columnist for CoinDesk

How far can cryptocurrencies go? What is the best way to buy them? We have planned a free class with one step ago. Click here to view and receive the InfoMoney cryptocurrency newsletter

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