Buy Now Pay Later: Teller Launches New NFT Loan Initiative

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Titled, ‘Ape Now, Pay Later’, the feature will be available on NFTs like Bored Ape Yacht Club, Doodles, Meebits and Cool Cats.

In a statement to announce the development of Thursday, the company noted that the BNPL feature is designed to be work through a participant-driven model. The implication of this service model is that users will directly lend to and borrow from each other.

The feature, which share multiple similar traits with applications like Affirm and Klarna, is built on the Polygon blockchain network.

The statement further indicated that any user who want to use the the feature would be required to pay a minimum of just 25 percent of the total price of the product and complete it via installments.

But the first thing any interested user need to do, the statement noted, is to submit their loan requests through Teller. Once the request has been submitted, the funding for the loan will be made by Teller and lenders on a case-by-case basis.

The role of other lenders for the initiative to work is key. This explains why the company stated that they would earn an interest of almost 30 percent per annum.

The decision about which user is credit-worthy will be made by market participants. They would also decide the annual percentage rate and the loan terms.

The timing of the launch of the Loans initiative can’t be better. It was launched at a time that the market is experiencing a major meltdown that has crash the price of cryptocurrenies, making analysts conclude that the industry is experiencing a winter.

As the prices of crypto assets fall, the NFTs market has also taken an an unavoidable hit. Available data indicated that the NFT market is currently experiencing a major price slump and the price of tokens have fallen to the lowest in the last twelve months.

Take for example,Bored Ape Yacht Club’s NFT collection. Last year, the collection was sold for 90 Ethereum on Friday. According to data from NFT Price Floor, this price represents a forty percent drop from the price it was sold in May.

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