Experts say that NFT is a potential financial tool and a vital part of the internet culture.

Potential for NFT

Director of Crypto Consultants UK Nawab Hussain stated that the NFT market had already moved beyond the stage of being just a platform for artists to post their work.

Hussain notes that it is still becoming a means of a larger economy.

Although the NFT sector is still young, he thinks that it will see a huge expansion in the NFT finance space in the coming five years.

“We see the NFT market also becoming a means of verification for physical items such as high-value watches or even sneakers. We are starting to see large corporations delve into that side of the NFT space,”
Hussain.

NFT secured loans

You can leverage physical assets to make financial instruments, as shown by house mortgages. NFT collateralized loan is one of the best ways to use NFTs for financial instruments.

NFTs are easy to exchange and can soon be valued at fair market prices. NFTs provide the liquidity needed and users will soon be able to quickly use NFTs as collateral to secure loans.

Vismantas Motiejūnas, CEO at TrustNFT, a decentralized NFT loan, and marketplace, notes that the potential of NFTs is endless, and it can be used to generate profit to the investors:

“We came up with the idea of how people could monetize their current NFTs. Our solution is not to have them sell assets, but to use their NFTs to secure liquidity so they can invest in other projects. This allows the option of not freezing their NFT assets’ value,”
said Motiejūnas.

AI used to calculate the value

TrustNFT’s CTO, Mantas Mackevicius sees difficulties in the evaluation of NFTs. There is no consistent way, even though accuracy is critical to any solution that uses NFTs to collateral.

TrustNFT takes the next step, being the first platform to use AI and Big Data to accurately evaluate NFT. Also, to simplify the NFT trading and lending process providing a user interface with “a few clicks” approach.

NFT owners can use the platform to evaluate NFTs accurately and then secure collateral using an AI-powered TrustNFT evaluation machine. Big Data is used to calculate the maximum loan limit for an asset. The asset will be locked in TrustNFT smart contracts until it is fully repaid.

“I believe NFTs will evolve to be integral digital assets on every new platform we know. Moreover, NFTs will find their place in the banking industry as well.We have seen their role increase in the gaming sphere, therefore the rest is just a matter of time,”
Mackevicius was the Chief Technology Officer at TrustNFT.

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