NFT assessment and loan company Scratch officially launched the Scratch Token for its eponymous platform, offering investors the option to take out loans with NFTs as collateral, Bankless Times learned from a press release. The token will enable investors to hold stakes in the platform.
Token on Uniswap, platform audited by Certik
Pending SEC approval, the Scratch Token will only be available via Uniswap. The launch coincides with Certik’s completion of the first security audit of the Scratch Platform. Certik is the leading security platform in DeFi and blockchain.
Shawn Owens, Co-founder of Scratch commented:
It’s clear with record months in 2022 on NFT valuations — even outperforming cryptocurrencies — that the NFT industry is getting taken seriously all over the world. It’s amazing to see that people are realizing it can be a fun technology, but that it’s also serious and life-changing for the artists and communities that are so passionate about NFTs.
Currently, it’s difficult for anyone to valuate NFTs at scale. But with Scratch Platform’s future product development releases, it’s possible and can unlock new financial applications for NFTs. Scratch Token — starting today with a limited launch — will help power those applications.
Resolving issues with research and valuation
NFTs dominated SXSW 2022 alongside Web3 technologies. At the same time, this sector lacks asset valuation, standardized data research, and financial services. Scratch aims to resolve these issues through future product development releases.
Phases of development
The launch of the ETH-based ERC 20 Scratch Token is just one of multiple development phases of the platform’s present roadmap. These phases include the following components: loan, value, gallery, and vault. Here are some more details about each.
Borrowers can take out a loan of a percentage of the estimated NFT value on assets. Once taken out, the Scratch Vault (elaborated on below) stores the asset. The loan factors include the loan term and loan amount as well as NFT value and desirability, among others.
This is a novel valuation solution for digital assets like NFTs using the most recent market data and other market tools. It enables investors to receive a real-time valuation of their assets.
This is a future marketplace where you can buy NFTs and other digital assets. Direct purchases and loans generate the Scratch Gallery collection.
Last but not least, this is the repository for all digital assets serving as loan collateral. The platform secures and insures the assets to prevent loss of value.