Coub launches the world’s first centralized NFTs collateral platform

Jamal Molla
Written By Jamal Molla
I write about cryptocurrency, with a special interest in NFT and metaverse in particular.

What is the value of an NFT? Obviously, most people, especially amateurs, think about this question. These individuals find it odd that a simple picture can be sold for a high price. This has raised many questions as to the value of an NFT. Coub, a short video company, is set to unveil the world’s first centralized NFTs collateral platform. However, how will it value the worth of NFT?

Non-Fungible tokens, popularly known as NFTs, is more than what you think. It is not just a digital picture that anyone can transfer to another person, although it is characterized by event tickets, royalties, diamonds, and MetaVerse personalities. Nevertheless, this hasn’t provided any answer as to the value of an NFT.

One can jokily say that NFTs represent anything a buyer can buy, notwithstanding the amount. Well, this answer doesn’t hit the point. Look at Bitcoin for a moment. It is not backed by anything, but its value continues to increase. For over a decade, the value of bitcoin has increased consistently.

Recently, NFTs have taken over the market, much like bitcoin did some years ago. However, people are trying to find out what NFTs offer. A particular firm said it had handled the issue of underpriced NFTs. Interestingly, such a firm hasn’t worked with cryptocurrency since its existence. Coub.com, a reputable company known for creating short videos (micro-videos), has diversified into web3.

Centralized NFTs Collateralization – Is this a major risk?

Nowadays, collateral isn’t a foreign term to use in the cryptocurrency industry. Daily, more than ten thousand people use their cryptocurrency assets as collateral to acquire stablecoin loans. Because of this, several platforms enable these individuals to use blue chip NFTs such as Punks and Apes as collateral. However, what about centralized NFTs with solid and measurable items to back them up? Remarkably, this is the first in the industry.

Overall, the value of NFT collections was based on the lowest or floor price, representing their purchase price on the market. It’s an estimated price since only one NFT owner can change the selling price at which they intend to sell it. Considering the ETH price, you can understand the worth of NFTs. Coub.com has discovered a reasonable means of estimating an NFT’s worth.

Evidence of social engagement

Coub.com’s solution to ascertaining centralized NFTs worth can be viewed as a sign of social engagement. In a recent news release, it stated that the value of every NFT micro-video on its website would be connected to social analytics. Comments, shares, and views of the NFT will form part of what increases a clip’s value, which shows people’s interaction with the video. It offers users concrete reasons to produce engaging content and enables content creators to receive a fair reward for their work.

Most NFT projects generate their worth based on chance after the completion of the minting process. While the process looks electrifying for buyers, it involves an unsystematic process with only a few buyers getting a fair rate for their NFTs. With a drive to create more awareness in the industry, Cadbury Gems launches an NFT Campaign to attract more individuals.

While Coub.com just started Web3, it offers excellent content since it has been operating a video-sharing platform for several years. With the popularity of NFTs and a keen interest in the industry, Coub.com is doing everything possible to avoid any mistakes experienced by its predecessors. Only time will tell if it becomes a success in the industry.

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