Lender now owns a $340,000 NFT following an unpaid loan

In a rather interesting turn of events, a crypto lender is now $340,000 richer after a borrower failed to repay an NFT-backed loan he took three months ago.

The NFT collector borrowed 3.5 ETH (currently worth $12,600) on the NFTfi platform and put up an “Elevated Deconstructions” NFT, which is part of the Art Blocks Curated set, as collateral. The Elevated Deconstructions NFT was selling for about 11ETH ($39,600) at the time of the deal.

Since then, the value of these NFTs have shot up due to endorsements from Punk 6529 (a Twitter (NYSE:TWTR) account run by the owner of that CryptoPunk) and Cozomo de’ Medici (American rapper Snoop Dogg). They sold for 85 – 200 ETH ($306,000 – $720,000) not long after the loan deal.

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