- Token Backed Loans will be Offered by Kraken developed NFT Marketplace
- NFT’s liquidation value will be determined by Kraken’s marketplace before it can be used as collateral.
As per the information shared by the CEO and founder of Kraken, A new marketplace for NFTs (Non-fungible tokens) is being developed by crypto exchange Kraken. The new marketplace will allow the users to take loans by using the token as collateral.
Powell said, “The mechanism to determine the liquidation value of NFTs deposited as collateral is yet to be figured”.
Kraken has followed in the footsteps of major crypto exchanges like Coinbase and FTX, in developing an NFT market as it continues to see growth in its popularity. As per the latest data gathered from an unknown source, Opensea has become one of the major marketplaces for NFTs, as in the last month it conducted over $2million in trading volume.
There have been many exchanges that have implemented this strategy, like Nexo, but Kraken will be the largest exchange to offer NFT-backed tokens.
Disclaimer: The article is just to provide information and shouldn’t be considered as any financial advice. It is advisable to conduct thorough research before investing in any cryptocurrency.
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