Meta4 Capital Receives $ 6 Million NFT-Backed Loan From Genesis By BTC Peers
Meta4 Capital receives $ 6 million loan backing Genesis’ NFT
Meta4 Capital, a Miami-based Web3-focused investment management firm, received one of Genesis Global Capital’s first fully NFT-guaranteed loans, worth $ 6 million. This loan is important not only for its size, but also because it only used non-fungible tokens (NFTs) as collateral rather than larger liquid collateral. Meta4 is an NFT VC backed by Andreessen Horowitz and specializing in the acquisition of rare and historically significant NFTs.
Genesis loan funds were used to finalize Meta4’s purchase of three NFTs at Sotheby’s Metaverse’s October NFT “Natively Digital” auction: record-breaking $ 3.4 million gold Bored Ape Yacht Club # 8817 , the $ 3.6 Million Rare Pepe PEPENOPOULOS and $ 1 Million NFT from Mitchell F. Chan of Fingerprint DAO. These acquisitions served as a gateway to Meta4’s Series B cycle, which closed on December 1 for an unknown amount. Each item purchased was distributed proportionately among all Meta4 investors.
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According to CEO and Co-Founder of Meta4 Capital, Brandon Buchanan, in an interview with CoinTelegraph, he said, “We are able to financially arrange for returns above the interest rate for our investors by purchasing additional NFTs or by earning a return through DeFi protocols, and we’re able to run NFTs that would otherwise be essentially static. ”Buchanan also expressed his“ enthusiasm ”for working with Genesis. This brokerage firm offers a “Credibility” and value to NFTs and NFT-backed funding.
Roshun Patel, vice president of institutional lending at Genesis, confirmed to Cointelegraph that the company is currently taking blue chip NFTs. “We are looking for the most liquid NFTs with the highest individual value.” Only a few CryptoPunks and Bored Apes, as well as a few NFT Pak and Nouns, are currently in this group, ”he said.
Crypto native companies and protocols spearhead NFT as a single collateral. The loan between Genesis and Meta4 Capital will help the NFT asset class to develop its financial offerings for institutional investors.
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