On December 24th, the U.S. cryptocurrency exchange Kraken announced that it was developing a marketplace for NFTs where users could trade digital art and collectibles and organize loans using the tokens as collateral.
Jesse Powell, the CEO and founder of Kraken, accepted an interview with Bloomberg Media. He announced that the exchange is developing a marketplace that will provide custody services for NFTs and facilitate loans for users who use such assets as collateral.
In his interview, Kraken CEO viewed 2021 as the year of non-fungible tokens, which will go down in history as the time when NFTs become mainstream. Powell acknowledged that interest in NFTs has increased, which has led to an increase in capital inflows. He expects the rising demand to attract private and institutional investors to the NFT platform, offering more than just selling and buying digital art and collectibles.
Powell spoke about the development and said, “If you don’t deposit a CryptoPunk into Kraken, we want to be able to reflect the value of it in your account. And if, on the other hand, you want to borrow money. “
The rush to make money with NFTs
Kraken follows major exchanges like Gemini, Binance, Coinbase, and FTX to develop an NFT market as assets continue to grow in popularity. As reported by Blockchain.News, the non-fungible token market has grown to more than $ 7 billion at present, according to nonfungible.com and tech tracking company L’Atelier BNP Paribas. In 2020, investments in NFTs have almost tripled and are growing in popularity as crypto assets like Bitcoin continue to boom. Opensea, the largest marketplace for NFTs, has handled more than $ 2 billion in trade in the past 30 days, according to crypto data company DappRada.
NFT Resellers and Builders have made hundreds of millions. In March, artist Beeple broke digital art records and became one of the most successful living artists when he sold a crypto artwork for nearly $ 70 million. NFTs include digital real estate, virtual games, digital trading cards, and art. In contrast to large crypto coins like Bitcoin and ether, NFTs are not directly interchangeable and are distributed across many different types of platforms. Of course, most platforms require users to have a digital wallet and use crypto platforms.
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