4K, a novel market that points non-fungible tokens (NFTs) paired with luxurious objects held in storage. It has raised $3 million in seed rounds of funding that was led by Electrical Capital, Crosscut Ventures, Collab+Foreign money, ConsenSys and IDEO CoLab Ventures. 4K aims to bring NFTs of vault-stored valuables into the world of decentralized finance.
Testing of the 4K platform kicks off Tuesday, the company targets to issue digital authentication to luxurious objects like Rolex watches and uncommon sneakers. Customers can use it to earn yield within the growing decentralized finance (DeFi) realm.
With 4K, customers send a physical item for authentication and save it in a safe storage facility. After storing the product, customers will receive an NFT, which has the potential to earn interest, 4K CEO Richard Li says. If a customer sends the NFT to 4K, the redeemer receives the physical product at the address provided by them.
Three flavours of NFTs
- The digital artwork,
- digital objects from digital actuality platforms, known as “the metaverse,”
- digital property rights.
“We can NFT anything and bring it into the digital world. Imagine an NFT of a real-life horse and bringing it into ZEN RUN, or if you NFT’d a Michael Jordan rookie card and brought it into NBA Top Short.”
By the same token, how might someone with a million-dollar Rolex collection go about getting a mortgage against it? “Do I go to a pawn store?” Li mentioned.
In terms of storing customers’ valuables, Li said 4k will use independent auditors and high security vaults based in the US, to begin with. They will ensure Everything is 100%.
It’s slightly early for Uniswap, Li mentioned, pointing to next generation NFT platforms like NFTX, NFTfi and Taker.
“It’s going to be very interesting when you start getting yield on your digital NFTs and physical items. It will happen,” Li mentioned.
Connecting real-world property into DeFi is viewed as a highly lucrative addition to the world of crypto lending. DeFi refers to finance that is based on blockchain technology and that doesn’t rely on any central intermediaries such as banks.