February 10, 2022
February 10, 2022

Asset-backed NFTs: Bridging the real and virtual world with NeoNomad

Since their debut in 2012, NFTs have exponentially increased in popularity. In the past year alone

Asset-backed NFTs: Bridging the real and virtual world with NeoNomad

Since their debut in 2012, NFTs have exponentially increased in popularity. In the past year alone, NFT sales volume totaled $24.9 billion in 2021, compared to just $94.9 million the year before, (Reuters, Jan 2022).

Until now, NFTs have mostly been digital items such as an image, a video that derive their value based on social interest. Therefore, their value tends to be relatively volatile with speculators flipping these artworks for a profit in a couple of days.

NeoNomad is the new kid on the NFT block, offering multiple solutions and investment options in one comprehensive ecosystem. One of these solutions is an NFT marketplace that gives investors the chance to own both a digital piece of art in the form of an NFT, and a real-world asset. In essence, the NFT is tied to a physical asset with a less speculative value.

NeoNomad asset-backed NFTs are tied to gold, silver and agriculture: three assets whose value has stood the test of time and economic recession.

Reap more than just what you sow

An asset-backed NFT investment provides a “multi-layered yield”. That means that the owner of the NFT gains return on their investment in more than one way. Firstly, you own a digital piece of art in the form of the NFT. This can be traded on the market. In addition, you own an agricultural or precious metal tangible asset.

This is a relatively novel idea in the crypto space, but is likely to continue growing in popularity due to its potential to generate multi yield returns.

NeoNomad will bring asset-backed NFTs to the market in the form of two initial investment types, called MinDeFi and AgDeFi.

MinDeFi is a precious metals investment vehicle. Investors purchase a gold or silver NFT artwork on the NeoNomad NFT Marketplace. This NFT is tied to a physical gold or silver bar with a unique serial number, meaning the NFT is backed by the physical bar.

AgDeFi is an agricultural investment vehicle. Investors purchase an NFT of a dairy or beef cow, a crop, or a piece of agricultural land. This NFT is backed by the physical agricultural asset. For example, an investor receives a share of the profit for milk production when they invest in a dairy cow NFT.

Think of the NFT as digital proof of ownership of the physical asset. It provides irrefutable proof that the investor owns the asset. Plus, you get to own a unique piece of art that has its own value in the NFT market — a multi-layered yield.

Asset-backed NFTs have the potential to revolutionise the NFT and investment space. They promise to bring a stable, sustainable investment to the bridge the digital NFT and traditional finance markets.

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