Meta4, a blockchain-powered platform for trading in virtual goods and assets, announced that it has received $6M from Genesis Capital to provide liquidity for its native token (MET).
The “wave nft fund” is a cryptocurrency that was created by Genesis. The goal of the project is to provide investors with a way to invest in crypto without having to go through the process of buying and selling coins.
In the sum of $6 million, Genesis Global Capital has granted its first completely NFT-backed loan. Meta4 Capital, a Web3-focused investment management business located in Miami, received the financing. The company focuses on obtaining historically important and uncommon NFTs.
Because of its magnitude and use of NFTs as security rather than wider liquid collateral, the loan has made news.
The fresh monies were utilized to complete Meta4’s acquisition of three NFTs from Sotheby’s Metaverse’s “Natively Digital” NFT auction in October. The $3.4 million gold Bored Ape Yacht Club #8817, the $3.6 million Rare Pepe PEPENOPOULOS, and a $1.5 million NFT from Fingerprint DAO’s Mitchell F. Chan were among the three NFTs.
The additional purchases acted as a bridge between Meta4’s Series B round and the Series C round. That round ended on Dec. 1 for an undisclosed sum, and the additional goods were distributed equally to Meta4 investors.
Meta4 Capital’s CEO and co-founder is Brandon Buchanan.
“By acquiring more NFTs or generating yield using DeFi protocols, we’re able to financially design returns beyond the interest rate for our investors, and we’re able to put NFTs that would otherwise be virtually static to work.”
NFT-backed loans, according to Buchanan, are a superior approach to manage risk on the underlying asset.
“We’re able to financially design returns in excess of the interest rate for our investors either by purchasing more NFTs or generating yield via DeFi protocols,” Buchanan says, adding that “NFTs that would otherwise be essentially static are now being put to work.”
Genesis’ VP of Institutional Lending is Roshun Patel.
The business is taking “blue chip” NFTs, according to Patel.
“The most liquid NFTs with the greatest individual value are what we’re searching for.” “At the moment, only a few CryptoPunks and Bored Apes, as well as a few Pak and Nouns NFTs, fall within that category,” Patel stated.
The usage of NFTs as unique collateral is becoming more popular, and Genesis and Meta4’s new improvements will help to further strengthen this ecosystem.
Watch This Video-
The “verifiable scarcity” is a new feature that was released by Meta4. The company has been awarded $6M in funding from Genesis.
- digital ownership nft
- what is a nft fund
- metaverse funds
- metaverse nft