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When DeFi Meets NFTs: here’s How a Lender got a $340,000 NFT After a Loan Wasn’t Paid Back

An NFT owner took out a 3.5 ETH loan three months ago and used one of their NFTs as collateral. The NFT’s worth has risen to $340,000 since then. However, they were unable to repay the debt, and the NFT was handed to the lender.



Ethereum developers are starting to merge DeFi with NFTs, combining two of crypto’s biggest buzzwords – and it just lost someone a $340,000 NFT.

DeFi stands for decentralized finance and refers to any financial tool established on a decentralized platform, whereas NFTs are image-based tokens (and can have exorbitant values).

Traders have begun pledging NFTs as collateral when borrowing money through DeFi lending services in this scenario. The concept is that you could, for example, put up a 10 ETH NFT and then borrow 5 ETH as a loan. But, of course, you will forfeit the NFT if you do not repay the loan on time.

That’s precisely what happened in this case.

Taking out a loan by putting up an NFT

On the NFTfi platform, an NFT collector borrowed 3.5 ETH (now worth $12,600) about three months ago. They used an “Elevated Deconstructions” NFT from the Art Blocks Curated collection, selling for around 11 ETH ($39,600) at the time, making the loan. Although the most recent sale price for the NFT was 3.25 ETH ($11,700), it was less than the loan’s worth.

The value of these NFTs increased dramatically over that period. This was sparked in part by endorsements from Punk 6529 (the owner of that CryptoPunk’s Twitter account) and Cozomo de’ Medici, a pseudonymous art collector. As a result, they were quickly selling for 85 to 200 ETH ($306,000 to $720,000).

The three-month loan for 3.5 ETH came to an end yesterday, and the borrower had failed to repay the amount throughout that time. As a result, the lender received the collateral, which cost them 3.5 ETH but gave them the Elevated Deconstructions NFT.

The current floor price is 95 ETH ($342,000), which is the cheapest accessible NFT in this collection. In principle, this gives the lender a $329,000 deposit. However, despite the high floor price, the lender may not sell the NFT for this much.

In reality, it’s been 18 days since an Elevated Deconstructions NFT was sold. As a result, the borrower may have chosen to forego the loan to obtain immediate liquidity. This is implausible, though, because they could have considerably reduced the NFT price and still sold for more than 3.5 ETH.

Not for the first time

The fact that this NFT has been used as collateral twice in its lifespan — and both times the borrower has defaulted — adds an exciting twist to the story.

ACCORDING TO HISTORICAL DATA, this NFT was part of a loan that was defaulted on in April over a 3 ETH ($10,800) debt, which is how the previous owner gained it before giving it up over the weekend.

The former owner was involved in a few additional NFT-backed loans as well. They received their first liquidation in April after a 3 ETH loan was not repaid, and they received an Arago NFT. In May, they received 1 ETH (plus interest) back on loan guaranteed by a Decentraland parcel of property they had given out.

However, they haven’t been very active since the deal ended at the end of June. The wallet’s most recent transaction, according to blockchain statistics, was 58 days ago.


NFTs for Good Causes will be Showcased at a Hong Kong Event

The usage of digital tokens to advance UN sustainability goals is demonstrated at an NFT art exhibition.



Christie’s auction house sold a non-fungible token (NFT) image of a green-faced pixel avatar known as ‘Cryptopunk 9997’ for roughly US$4.3 million. Investors and collectors are currently interested in all types of NFTs, whether a simple pixel avatar or a finely crafted digital work of art.

NFTs are proven to be successful digital assets in various areas, including gaming, entertainment, and real estate. But, on the other hand, some people are starting NFTS to support issues like the environment and local communities.

By displaying NFTs for good, a new NFT exhibition in Hong Kong hopes to pioneer that positive spirit. The ImpactNFT Exhibition, which opens this Friday, will allow collectors and NFT aficionados to view and purchase digital artworks based on the United Nations’ 17 Sustainable Development Goals, including climate action, equal access to education, and gender equality.

Genesis Drop is one of the NFT artworks from Project Ark that will be on display during the show, and Romanian culture’s hand-painted eggs inspire it. In addition, project Ark, a carbon-neutral NFT marketplace, donates half of all earnings from Genesis Drop to the WWF in Romania, which is working to return the endangered European Bison back into the wild.

“By creating a win-win for artists, charities, and our partners, we want to show Hong Kong and the rest of the globe the power of NFTs for social and environmental impact,” said Roy Weissbach, Project Ark’s business development advisor.

NFTs from Earth.Org and the charitable art organization Sovereign Art Foundation will be on display, as will artwork by VintageMozart in support of the Nashulai Maasai Conservancy in East Africa NFTs minted for charity by eight Mexican artists.

The South China Morning Post (SCMP), based in Hong Kong, will also highlight its upcoming NFT auction in support of Operation Santa Claus (OSC), including new works by Hong Kong’s iconic visual and performance artist Frog King. SCMP and Radio Television Hong Kong (RTHK) run Operation Santa Claus every year to raise funds for a local charity.

Aside from displaying NFT artworks, anti-wildlife trafficking organization Break The Chain will host an augmented reality (AR) demonstration produced by gaming and entertainment metaverse portal The Nemesis.

In support of the ImpactNFT exhibition, RioDeFi’s chief marketing officer Stephane Villedieu said,

“The world already knows that blockchain technology provides a decentralized infrastructure for a more transparent, safe, and efficient financial system.”

ImpactNFT Alliance, in collaboration with Project Ark and Sovereign Art Foundation, will curate the exhibition, which will run from October 15 to 24, at the Soho House Hong Kong. Online viewers can watch the show at,, and

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Shiba Inu Announces an NFT Sale

The $SHIB coin’s developers have announced the launch of a non-fungible token (NFT) sale.



Shiba Inu announced the launch of an NFT collection called “Shiboshis” in a recent Medium post. The subject of the NFT collection will be similar to that of the SHIB coin, highlighting the coin’s tongue-in-cheek nature.

According to the article, 10,000 Shiboshis will be created for the debut, which will happen this week. Users will acquire NFTs using $LEASH for the first 24-hours, then with a mix of $ETH and $LEASH after that.

According to the post, the first purchase will be made through the ShiboshiSwap website, customized to sell Shiboshis. After that, users will be able to transfer and exchange their NFTs on secondary markets like OpenSea.

The NFT collection will first be sold in tiers, with prices doubling when the first 3,000 Shiboshis are sold.

According to the report,

“Shiboshi costs are based on tiered pricing. The first 3,000 Shiboshis will cost 0.1 Eth (BUT must be purchased in Leash for the first 24 hours). Shout out to XFund once again providing an incredible Oracle to help with this calculation. The next 5,000 Shiboshis will cost 0.2 Eth (in Leash for 24hrs) and the final 2000 Shiboshis will cost 0.3 Eth (in Leash for the first 24hrs).We don’t expect that floor to last for long.”

According to the post, users will be able to rename their Shiboshis with $SHIB, with the spent funds resulting in a coin burn.

The report continues,

“Initially [Shiboshis] just have generic names like 00001, but you can name it Flytoshi Kahn or whatever you like for an additional fee of $100 paid in Shib. Whenever the name is changed, these funds are burnt to the Shib burn wallet. If everyone names their Shiboshis that will be a $1 MILLION dollar burn.”

Shiboshis will eventually be converted to characters in the Shiboshi game, allowing users to deploy their NFTs in strategic gameplay, with each having the potential for unique qualities, according to the blog post.

The Shiba Inu team posted a video yesterday explaining how individuals can purchase $LEASH tokens:

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On Avalanche, the Artist who Painted the Kanye West Mural in Chicago will Offer it as an NFT



On the Avalanche blockchain, artist Jason Peterson is selling a mural of American rapper Kanye West that he recently painted in Chicago as an NFT.

The NFT will be sold on a new marketplace called, created by Peterson, Kalao, an NFT startup, and Ava Labs, the Avalanche development team.

The NFT auction will begin on October 11 at 1 p.m. Eastern Time and end on October 22 at 1 p.m. Eastern Time.

The artwork will be linked to the NFT’s owner via a QR code on the actual mural. The NFT’s ownership will be available on the Avalanche blockchain at all times, and if it changes hands, the information associated with the QR code will be updated as well.

Peterson’s first NFT piece is a mural of Kanye West. The artist, who has a million Instagram followers, promises to release more NFTs containing his best pictures.

In a statement, Peterson said,

“Contemporary artists are continuously finding new methods to question the status quo of art and its medium. NFTs introduced an inventive, new medium to the art world, allowing artists to have complete control over the distribution of their work while also allowing them to experiment with new ideas.”

While Ethereum is the foundation for most NFTs today, other blockchains such as Solana, Tezos, and Avalanche appear to be gaining traction in the NFT field. For example, American rapper Doja Cat just debuted her first NFT collection on the Tezos-based OneOf platform. In addition, the Solana blockchain had its first million-dollar NFT sale last month.

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