People are taking out loans against their NFTs—and defaulting.

What’s happening in crypto isn’t quite a replacement of traditional finance. Instead, it’s a rebuilding of traditional financial behavior from the ground up. There are new assets (including NFTs), loans against assets, and of course with loans come defaults. There are interesting circumstances like the same NFT being put up as collateral by multiple people over time and living through multiple defaults. There’s probably a money laundering element in here too if one looks closely enough. learn more

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