June 10, 2022 09:00 ET | Source: Reva Reva
Kansas City,
Kansas City , June 10, 2022 (GLOBE NEWSWIRE) — REVA, a well-known digital art collection service platform, recently launched the pledge deposit auction business. The purpose is to release the liquidity of NFT market and lay out the debt market in NFT field.
REVA believes that the liquidity of assets is very important for the investment field. However, in the rapidly developing NFT market, there is a strange phenomenon: many users are used to holding promising NFT for a long time, resulting in this part of the funds for purchasing NFT being locked and idle for a long time. As an inseparable digital voucher, NFT assets have unique characteristics, and whether the transaction can be done or not is largely influenced by subjective factors, which leads to the inability of NFT to unify pricing standards and make it difficult to value. The most serious impact is that most NFTs are facing the problem of poor liquidity at present.
Lack of liquidity in the market makes it difficult to attract investors. Although the NFT field has made extraordinary development in the past two years, it is still difficult to hide the pain points of poor liquidity, high investment risk and difficulty in realizing digital assets. The short-term price of NFT market fluctuates greatly. Many NFTs can’t show their true value in a short period of time, which leads many investors to buy NFTs at high prices. After a few days, they depreciate and can only be shelved and wait for opportunities.
Simply put, the business actually consists of three parts. The pledge of NFT is actually a lending business. REVA accepts the client’s entrustment, and provides loans through NFT pledge to solve the client’s cash flow problem. The customer shall pay the loan interest to REVA platform on a weekly basis.
NFT commissioned auction is a big highlight. Client entrusted REVA to auction NFT collection. REVA will evaluate the value of the NFT collection through the historical auction amount records of the NFT collection and the professional opinions given by the expert appraisal team, and sign a specific entrustment contract with the customer according to the evaluation results. It is worth noting that REVA will also provide an auction guarantee agreement. Based on the evaluation value signed by both parties, REVA will guarantee the consignment by auction. If the final transaction price is higher than the entrusted price, the higher profit will be shared by the customer, investor and REVA. If the final auction amount is lower than the entrusted price, REVA and the investor will jointly pay for it.
Through NFT’s pledge deposit auction business, REVA can provide loans to some users who are eager to cash in, while users who are used to holding NFT for a long time can also release the asset value through pledge, without worrying about the ownership of NFT. The auction can increase the transaction records of NFT collections and make the value of NFT more accurate and transparent.
REVA’s NFT pledge deposit auction business has established a complete trading ecology, showing great market potential. REVA will also introduce NFT creation and distribution functions in the future. With the sustainable development of REVA’s ecology, the liquidity problem will be completely solved, and the ecosystem built by REVA will capture great value in the future.
