The MonkeyFirm (recently rebranded from MemeFarm) has launched its ‘Token Backed NFT’ wrapping platform in an effort to promote ease of peer-to-peer trading and create a new way for creators of virtual items to commercialise their digital assets, without having to worry about getting scammed or finding an escrow solution.
Peer-to-peer or OTC (Over the Counter) trading has become a major part of crypto transactions, but not without its share of problems; particularly for the multi-billion dollar illiquid or low-cap alt-coin market. To complete a transaction buyers and sellers need to find someone to trade with, build trust and negotiate terms, find a trustworthy escrow agent, and coordinate across multiple time zones. To solve this issue The MonkeyFirm has introduced Token Backed NFTs that will simplify peer-to-peer trading by creating a means to ‘wrap tokens’ in the form of an NFT, put them up for sale at a desired price, and have the entire transaction handled via smart contracts.
“With the Token Backed NFT structure you can cut out the drama and stress out of peer-to-peer trading, and go to bed knowing your trade will be fulfilled by a serious buyer on a secure and reliable platform,” said Mark Berisha, CEO of The MonkeyFirm and APEcoin, and a founding member of BUSTA. “The MonkeyFirm has focused on a low fee structure, as the seller will not be paying a third party to facilitate the exchange, ultimately creating a seamless trading experience.”
“The simplest ideas in crypto are the biggest. Like the advent of the ERC-20 (tokens) or the AMM (Automated market-maker). Token-Backed-NFT’s are very simple and highly scalable solving a real market problem,” Berisha added.
Notably, the funds of the sellers will never be withheld and the tokens can be redeemed at any time, with The MonkeyFirm simply providing a streamlined solution for peer-to-peer exchange.
Wrapping a token is exchanging one set of standards for token interaction, with another set of standards – Most NFTs are defined using a standard called ERC-721, which maintains each token as a unique id and defines how to exchange them individually. Compared to the standard for cryptocurrency tokens, ERC-20, which allows tokens to be sent as multiples and fractionalised. Wrapping allows NFTs to be stored in a wallet, exchangeable in multiples. It also allows for base liquidity to be established in exchange for other tokens.