While observing various small and medium-sized NFT platforms, such as the Heco-based NFT platform cycross.io, an NFT artwork is auctioned successfully by a buyer with a 1,000% increase from the start price in just 72 hours, and the rate of return even exceeds the recent Dogecoin (DOGE) boom.
“If the daily turnover on OpenSea is surprising, the speculative return on small and medium-sized NFT trading platforms is even more astonishing.”
On April 22, an NFT artwork was sold on Cross, a nonfungible token issuance and trading platform, for 28,000 CVT (approximately $7,000) and then entered reauction, which adopted blind auction. The reauction time was set for 72 hours, and it was finally auctioned at 285,000 CVT ($70,000), an increase that even surpassed that of DOGE.
Although in the NFT market it is not uncommon for NFT artworks to be sold at thousands of Ether (ETH) or even higher, the fact that the final transaction price increased by more than 1,000% in only 72 hours. Usually, the rise and fluctuation of ordinary artworks will not be reflected in several hours, and most NFT artworks are not Jack Dorsey’s first tweet.
This is likely to be related to Cross Loans, which will be launched in future versions, as announced by the platform lately. All NFT artworks sold through Cross can be mortgaged, according to the published rules. The basic rule is “30% of the average value of the guide price and the transaction price” while the figure may change in the future. However, if Cross Loans is launched, it will become the first decentralized platform that can use nonfungible tokens for lending.
Nonfungible tokens cannot be standardized as Ethereum or Bitcoin. However, the following situation may soon appear: Most NFTs will be packaged like bonds, or even rated, to increase liquidity through mortgages and to be more deeply embedded in the DeFi ecosystem.
As Cointelegraph recently reported, OpenSea has completed 90,000 transactions in the past four months alone, generating more than $153 million in transaction volume. Obviously, the market’s popularity is not only presented on large platforms. For small and medium-sized buyers, Cross may become a speculative paradise for them since the liquidity of nonfungible tokens will be increased through Cross Loans.