Blur, a pro-focused NFT market, has launched Mix, a peer-to-peer NFT lending platform sparking issues over its impression on the broader market.
Mix permits merchants to lease out their NFTs to collectors, who should buy blue-chip NFTs with a smaller upfront cost. In line with Blur, the platform goals to herald new consumers and drive liquidity by decreasing the fiscal boundaries to entry for fashionable NFT collections.
Since Mix’s launch on Could 1, some blue-chip NFT collections have seen short-term will increase in flooring costs. Nonetheless, there are issues that NFT lending platforms reminiscent of Mix might create liquidity dangers if assortment flooring or cryptocurrency costs collapse.
Twitter consumer Carl_m101, founding father of NFT assortment Sky Scooters, highlights the danger of inexperienced consumers coming into the market and borrowing funds to buy NFTs they couldn’t afford earlier than. There are issues that Mix could impression the market negatively, in addition to the native BLUR token.
Mix’s financing methods underneath scrutiny
Although not the primary platform to introduce NFT lending, Mix’s financing methods have been met with skepticism. PirateCode and Cryptobiosis, co-founders of peer-to-peer NFT lending platform BendDAO, specific issues over Mix’s refinancing course of and whether or not it’s going to preserve lenders protected.
Jonathan Gabler, co-founder of NFT lending platform NFTFi, acknowledges Mix’s modern method to introducing liquidity into the market. Nonetheless, he warns of the risks of incentivizing merchants to take out loans with loan-to-value (LTV) ratios which may be troublesome for risky digital property. Gabler emphasizes the necessity for more healthy mortgage markets and extra borrower-friendly peer-to-peer protocols