A popular NFT collector and Web3 icon, Daniel Maegaard, better known as Seedphrase, has ignited the NFT community by securing an NFT-backed loan worth a record-breaking $2.75 million. Known for wearing a large headpiece depicting his iconic CryptoPunk #8348—a symbol synonymous with his digital identity—Seedphrase uses his persona to champion generative art, luxury digitization, and musical expression in the Web3 space. The collateral for this groundbreaking loan is his CryptoPunk #8348, a unique asset deeply tied to his portrayal of today’s fringe culture and his vision for the future of the digital renaissance.

From the details released by GONDI about the loan deal, we know the loan is for 2,750,000 USDC, has a six month maturity, and a 20% interest rate. If @seedphrase fails to meet up the terms of loan, he'll have to yield complete ownership of his Punk to the lending party. 

The collateral, the CryptoPunk #8348 is a one-of-one CryptoPunk and the only one with seven traits. It was initially purchased by @seedphrase in May 2020 for 85 ETH ($18,000 at the time), and has not been resold since. 

When asked about how feels about the loan deal in an interview, Seedphrase commented:

This is comparable to using a Picasso as collateral in the traditional art world—an asset that appreciates over time but can also unlock substantial liquidity when needed.

Seedphrase further explained that, "By collateralizing CryptoPunk 8348, I was able to secure $2.75 million in capital without relinquishing ownership of this historic NFT." "This liquidity enables me to strategically deploy funds into the crypto markets, particularly as I potentially approach my fourth crypto bull cycle,”  he added. 

Looking at history being made by GONDI, this loan is the single largest on-chain loan against any NFT ever. It also cements GONDI’s position as the leading NFT financing platform with the feat of a whopping $100 million in net loan volume.  

Gondi co-founder, with the pseudonymous Burga praise this achievement in an interview saying, “This $2.75 million loan marks a significant milestone for NFT lending,” 

He also added that, “The loan terms demonstrate how NFTs are maturing as a legitimate asset class, and creating more efficient options for digital asset holders to access liquidity compared to almost any other asset globally.”

Aside from the Seedphase loan deal,  GONDI has recorded many more impressive deals. For example, "The Blueprint Skull" was used as collateral by Sam Spratt for 150,000 USDC. The deal had a 30 days maturity period and  13% APR.

As for public opinion about the record breaking loan deal, mixed reactions trailed the internet and social media platforms. Some people were surprised that a Punk could still be considered that much valuable, with an X user commenting that he thought “Punks were dead.”

Another X user doubted if the loan was worthwhile due to the interest rate and repayment schedule.

This record-breaking deal highlights how NFTs are rapidly evolving from digital collectibles into full-fledged financial assets capable of providing liquidity on par with the traditional art market. However, despite growing recognition of NFTs as a serious asset class, the high risks, including the potential loss of valuable tokens, remain a topic of debate, underscoring the need for deeper consideration of their role in the financial ecosystem.

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A high-value CryptoPunk NFT, #685, worth $136K was accidentally burned due to a wrapping error by an investor
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