NFT renting: The latest source of passive income in the DeFi space
With the emergence of the metaverse, NFTs have never been in more demand. NFTs spiked 21,000% to more than $17 billion in 2021 and this spike shows that they are here to stay for the long run.
Despite their popularity, NFTs are still viewed with scepticism as people struggle to comprehend how a digital image or a piece of land within a metaverse could be worth thousands of dollars. Unless they are multi-millionaires, most people are not willing to pay huge amounts from their pockets to own these digitized assets. Instead, experienced users view NFTs as an investment method. TribeOne’s NFT-lending solutions emerged to help users acquire NFTs with a small down payment and with custom repayment schedules.
Let’s take a look at how people use NFTs to make a profit.
In its current state, the NFT market allows users to generate profit via the buy low/sell high method. Users can buy NFTs at “floor price” to be a part of the NFT community. Most users hold onto their NFTs, hoping the value of the collection will increase with time. They can look for underpriced NFTs, buy them and sell them for a higher price, or simply partake in the minting process to acquire NFTs before they hit marketplaces.
Almost all methods require users to find the “next big thing” in the NFT space before anyone else or at least purchase and hold the NFT for a long period of time. Users invest their tokens in projects and-in a way- lock them into a project and wait for a bearish market to turn their investment into profit.
Enter NFT renting and earn passive income!
As metaverses and metaverse games become more prevalent among users, the NFT space develops new use cases. Lands, in-game items, and characters are being created, bought, and sold among users. NFT renting is a brand-new concept that emerged due to the increasing popularity of metaverses, enabling owners to generate revenue off their otherwise unused assets.
In short, renters use a variety of NFTs in metaverses without having to be tied to owning a single one or paying an astronomical amount of money just to join a metaverse. The lender sets the rental price and the rental period, while the renter specifies the rental duration, pays the rental price and receives the NFT in full custody.
NFT owners can enjoy a constant flow of passive income, generated through renting out their NFTs that otherwise would do nothing but sit in their wallets. On top of that, owners retain all ownership rights of the NFT in the long run, enabling them to use their NFT assets for other revenue-generating opportunities once the rental period expires.
TribeOne is building an ecosystem where users will have access to products and services to invest in NFTs and make the most out of this thriving new space. Naturally, we are exploring all types of utilities NFT space has to offer, and NFT renting is one of them. We look forward to integrating renting solutions onto our platform in the future. As we establish a solid place in the NFT world and further develop our dApp, we gain priceless experience and know-how in this underexplored venue, which will eventually lead to more innovative products and solutions.
TribeOne is the world’s first-ever NFT lending platform that offers a seamless experience; to the users through its innovative consumer-centric products. The platform will break barriers in the traditional financial ecosystem and revolutionize the DeFi sphere as a whole. Providing the community with a platform to lend, borrow and invest in NFTs. Therefore, offering an unconventional experience for all.