The NFT token market has experienced unprecedented growth in the past year. With collections that have become emblematic, such as the Bored Ape Yacht Club (BAYC). And numerous offers developed in parallel to provide this sector with innovative financial instruments. Such as the ability to make loans by depositing these precious digital images as collateral. But unsurprisingly, not everything goes as well as expected. Reason why the Opensea platform has just frozen BAYC #2162 as part of an ongoing investigation.
Sometimes the NFT sector seems to come down to the single structure Yuga Labs, at the origin of the Bored Ape Yacht Club (BAYC) collection† Because the development dynamics continue to offer new opportunities to investors who are still in the starting blocks. To the point that it caused a historic surge in Ethereum network costs during the last Otherdeed operation. A metaverse dedicated to its monkeys, with lots that are not always profitable in the current state of the market.
A collection of NFTs whose bottom value is currently 96 ETH (about $190,000). With the possibility of turning it into a guarantee to take out a loan in cryptocurrencies on platforms like NFTfi. A procedure performed on March 19 by the owner of copy #2162. But a month later, things seem to get complicated. To the point of initiating unprecedented legal proceedings.
BAYC – A loan in monkey money
All of this is done under the jurisdiction of the High Court of Singapore. Concerning a Loan Proceedings with an NFT from the Bored Ape Yacht Club Collection. The latter has signed a contract with the NFTfi platform last month (daily). And expires yesterday, according to the terms of the existing contract. With the result, the loss of the relevant NFT if the loan cannot be repaid within the term† And that is clearly exactly what just happened… at least from the perspective of the lender, Rajesh Rajkumar.
Except things aren’t that simple. Because according to the borrower, an agreement had been reached that allowed the deadline for this operation to be extended in the form of a “refinanced extension clause”. † But the pseudonymous chefpierre.eth account clearly didn’t hear it the same way. And at the end of the official 30-day period, he simply restored the NFT. But Rajesh Rajkumar had not yet said his last word.
Open sea blocks BAYC #2162
Because the latter immediately started legal proceedings. With the result, blocking NFT accused by the developers of the Opensea platform† The latter is decorated with a snowflake symbol indicating the frozen character (frozen). That is, impossible to resell or exchange for the duration of this case. But also not available for every bid from a potential buyer.
All this does not say whether the controversial current owner of this BAYC just can’t do this anywhere else† For example on the famous LooksRare (LOOKS) washing machine. Because in this case, any attempt at justice could quickly become more complex. Particularly if using a pseudonym implies that no identification has taken place to put a face on the chefpierre.eth account. A case to follow…