Nawab Hussain, director of Crypto Consultants UK, commented that the NFT market has already surpassed the phase of just being a place for creatives to share their artwork.
Still, it also is becoming the means to a much larger economy, notes Hussain.
Even though the NFT space is still in its infancy, he believes that the vast expansion of the NFT finance market will be seen within the next five years.
“We see the NFT market also becoming a means of verification for physical items such as high-value watches or even sneakers. We are starting to see large corporations delve into that side of the NFT space,” said Hussain.
NFT collateralized loans
As seen through house mortgages, physical assets can be used as financial instruments through collateralization. One of the ways to use NFTs as financial instruments is NFT collateralized loans.
NFTs are easily exchanged and will soon be easy to value at the fair market. This provides the necessary liquidy, and shortly, NFTs will give users an easy and secure way to use many digital and physical assets as collateral for loans.
Vismantas Motiejūnas, CEO at TrustNFT, a decentralized NFT loan, and marketplace, notes that the potential of NFTs is endless, and it can be used to generate profit to the investors:
“We came up with the idea of how people could monetize their current NFTs. We offer a solution not to sell their assets but use their NFTs as a collateral, thus getting liquidity and ability to invest in other projects. This allows the option of not freezing their NFT assets’ value,” said Motiejūnas.
Using AI to determine the value
Mantas Mackevicius, CTO at TrustNFT, sees challenges in evaluating NFTs because there is no reliable way to do it, even though accurate evaluation is crucial to all solutions using NFTs as collateral.
The TrustNFT platform is taking the next step by being the first one in the market to implement a reliable way to evaluate NFT using breakthrough AI technology and Big Data. Also, to simplify the NFT trading and lending process providing a user interface with “a few clicks” approach.
The platform allows NFT owners to accurately evaluate NFTs and secure it as collateral with an AI-powered TrustNFT Evaluation Machine. By using Big Data, it determines the maximum borrow limit for a particular asset. If the user agrees or chooses to this loan term and LTM, the asset is locked in TrustNFT smart contract until the loan is completely refunded.
“I believe NFTs will evolve to be integral digital assets on every new platform we know. Moreover, NFTs will find their place in the banking industry as well.We have seen their role increase in the gaming sphere, therefore the rest is just a matter of time,” Mackevicius, CTO at TrustNFT shared.
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