Scratch Launches New Token that Can Be Used to Get Credit for NFTs

Crypto platform Scratch, which specializes in NFTs and DeFi services, has officially launched the eponymous coin. Investors can use Scratch tokens to take out loans with NFTs as collateral, CryptoMonday learned from a press release. It is also possible to stake Scratch Token to earn dividends.

At first, the token could only be found on the crypto exchange Uniswap. Now, it has also received approval from the U.S. Securities and Exchange Commission (SEC), and the launch also coincides with the completion of Certik’s security audit of the platform. Certik is the leading security platform in the DeFi and blockchain space. So it is expected that Scratch Coin will now be available on centralized marketplaces.

“It is clear that NFT valuations in the record months of 2022 – outperforming even cryptocurrencies – show that the NFT industry is being taken seriously around the world. It’s amazing to see that people are realizing that this technology can not only be fun, but serious and life-changing for the artists and communities that are so passionate about NFTs. Currently, it’s difficult for anyone to evaluate NFTs on a large scale. But with future product development versions of Scratch Platform, it is possible and may open up new financial applications for NFTs. The Scratch Token – which launches today with a limited run – will help enable these applications,” said Shawn Owens, co-founder of Scratch.

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Solving problems with valuation of NFTs

NFTs dominated the SXSW 2022 show, as did other Web3 technologies. But this sector still lacks good asset valuation, standardized data research, and financial services. Scratch aims to solve these problems through future products.

The launch of the ETH-based ERC 20 Scratch token is just one of several development phases on the platform’s current roadmap. These phases include the following components: Loans (Loan), Real-Time Valuation (Value), Marketplace (Gallery), and Vault (Vault). Here are more details on each component.

Scratch Loans

Users can take out a loan for a percentage of the estimated NFT value of assets. Once borrowed, the asset is held in the Scratch Vault. Loan factors include loan term and amount, as well as NFT value and desirability.

Real-Time Valuation

This is a novel valuation solution for digital assets such as NFTs that uses the most current Dnd other market tools. It enables investors to get a real-time valuation of their assets.

NFT Marketplace

Scratch Gallery is a future marketplace to buy and sell NFTs and other digital assets. Direct purchases and loans will be visible in the Scratch Gallery collection.

Scratch Vault

This is the repository for all digital assets that serve as loan collateral, so it’s a kind of crypto wallet. The platform insures the assets to prevent loss of value.

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(Featured image by Tumisu via Pixabay)

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