Ethereum blockchain-based non-fungible token (NFT) marketplace Hoard Exchange has on May 26 launched its trading services. Henceforth, digital art collectors and creators can use the Hoard Exchange to trade NFTs.
Notably, through the Hoard Exchange, users can borrow and pledge NFTs of all types. By depositing any type of non-fungible token on the Hoard platform, users can then use it as collateral to borrow a loan. A similar concept is used by different decentralized lending financial platforms with the only exception being the use of digital assets as collateral. However, the firm noted that the use of NFTs as collateral will largely depend on the supply and demand in the market.
“Hoard’s solution offers lenders a tool to yield high profits and an opportunity to acquire desired NFTs in case of a foreclosure,” the firm noted in a press release.
The platform uses its NFT lending services as a way to attract more customers against a very competitive industry. Furthermore, there are already established NFT marketplaces that control a significant global volume of the non-fungible tokens (NFTs) market.
“The Loan feature on the Hoard Market opens new possibilities for NFT holders. This is the first step of further development of novel NFTs functionalities/utilities which Hoard is going to introduce in the coming months,” said Radek Zagórowicz, CEO of Hoard.
The platform has the HRD token as the native token that will play a critical role in developing a seamless NFT marketplace. According to the firm, HRD token holders can stake the coin thus earning an income from the investment.
The NFT market has attracted notable celebrities and also tech investors in the past few months. Most of the people involved in the digital art industry now have a chance to mint their work at the comfort of their homes. Additionally, digital art collectors can deposit their pieces on the Hoard Exchange and take a loan at ease.
The firm seeks to counter the liquidity issue challenge in loaning customers by utilizing deep concepts applied by the decentralized financial platforms. Hoard Exchange requires one to register an account through its official website in order to make an offer on the existing digital arts displayed on the platform.