NFTs

Seedphrase Renews $2.75M Loan Backed by CryptoPunk #8348

NFT collector Seedphrase has renewed a $2.75 million loan by re-collateralizing CryptoPunk #8348, one of the rarest NFTs in the original 10,000-piece CryptoPunks collection. The loan was first issued in late 2024 and remains one of the largest recorded in the NFT lending space. Following its maturity date, Seedphrase renewed the loan with updated terms, extending the due date from 26 May 2025 to 21 September 2025.

CryptoPunk #8348 has been locked in the protocol as collateral since the loan was initiated. If the terms are not met by the end of the period, the NFT may transfer to the lender. CryptoPunk #8348 is the only one in the collection with seven unique traits, making it statistically unique. It was purchased by Seedphrase in May 2020 for 85 ETH—worth about $18,000 at the time—and has remained in his possession since.

The decision to use this asset as collateral for a multi-million-dollar loan highlights how NFTs are being integrated into more traditional financial structures. The renewal also reflects how some collectors are using NFTs to access liquidity without selling assets outright. This use of collateral-backed loans continues despite ongoing volatility in NFT pricing. CryptoPunks remain one of the most recognized NFT collections and a significant part of digital art history. Recently, stewardship of the CryptoPunks IP was fully transferred from Yuga Labs to the Infinite Node Foundation (NODE), a nonprofit organization focused on preserving digital art.

While the financial terms were not officially disclosed, multiple sources reported that NODE paid approximately $20 million for the CryptoPunks IP. The acquisition includes the rights to the collection’s IP and website, marking a major shift in its management and long-term care. NODE plans to collaborate with museums and open a permanent exhibition space in Palo Alto, supporting long-term accessibility with a live Ethereum node.

Terron Gold

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