OPINION: The cartoon apes that became a status symbol during the NFT boom of 2021, have become a financial albatross for some of their once proud owners, who have plunged into debt.
started replicating whatever services traditional banks provideUsing a blockchain and a whole series of smart contracts , crypto developers have built big borrowing and lending pools.
The term of the loan is programmed in, and the money changes hands. Most of the loans are overcollateralised, meaning traders need to stump up a lot more than what they plan on borrowing. But just like banks, if your collateral falls below a liquidation rate then the loan will be called in. Your Bored Ape will be repossessed, and in some cases, your debt and Bored Ape will be put up for auction.the average market value for a Bored Ape a week ago plunged to $US56,376 . Depending on the Bored Ape in question, however, some still sell for much higher prices, with one trading for $US371,600 just three days ago.
Fast-forward to 2023, and money is not as free-flowing as it used to be. Interest rates have been rising, and sharemarkets corrected. Some US banks fell over. Several major crypto exchanges were found to be eye-watering frauds. Bitcoin came off the boil.And some Bored Ape owners began breaking the bro-code. Selling pressure emerged. More monkey pictures, that looked alarmingly similar to other monkey pictures, were released. Speculators freaked out. Bored Ape values began to fall.
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