Home Latest News New NFT-project raises $8M amid washout in crypto, tokens – Axios

New NFT-project raises $8M amid washout in crypto, tokens – Axios

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Astaria, a decentralized finance (DeFi) project co-founded by ConsenSys and SushiSwap alum Joseph DeLong, has raised $8 million in a round that included True Ventures, Arrington Capital, Wintermute and many others.
The platform will allow holders of valuable non-fungible tokens to lock them up as collateral and borrow crypto against them, so the holders can then buy other NFTs, plus trade and invest in decentralized finance. For borrowers, liquidity is instant and liquidations are more predictable.
Driving the news: Amid a brutal downturn in all things crypto-related, a lot of the air has been let out of the NFT market. But Astaria's fundraising success suggests the obituary for the sector may have been prematurely written.
There's still a lot of wealth trapped in non-fungible tokens. Volume is down considerably in the NFT market, but it's definitely not gone, DeLong's cofounder Justin Bram told Axios.
Normal people could benefit as well. "A lot of these people who hold apes are NFT-rich and cash-poor, and we want to fix that," DeLong said, referring to the Bored Apes Yacht Club, the most valuable single collection of NFTs in the world right now.
Situational awareness: Decentralized finance and NFTs have been dancing around each other since at least 2020. Astaria is not the only company to enter the NFT lending space, but it believes it can advance the product significantly for users.
Astaria uses an appraisal system in which a knowledge worker writes a term sheet about an NFT that reflects its particular characteristics. The appraiser decides how much can be lent against the NFT, the length of the loan and the interest rate, and can even craft some special terms.
Astaria has also crafted special functions so that borrowers can still "use" their NFTs somewhat if something special comes up (such as accessing a party or unlocking a gift for holders).
Be smart: Price discovery in NFTs is very tricky. All Bored Apes are not the same (not even close), for example.
Reality check: It's a complete bear market in crypto, and future growth is looking dicey at best. So it might seem like a crazy time to build a company around lending against JPEGs.

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