Horrifying Loan Scheme Allows People to Buy NFTs in Installments

What could possibly go wrong?

The Humanity

Cryptocurrency loans company Teller Finance is literally applying the logic of layaway to non-fungible tokens — because, apparently, the crypto community can sink even lower.

As Decrypt reports, Teller Finance is launching its aptly-named "Ape Now, Pay Later" program — yes, we're cringing just as hard as you at that tagline — to allow users to give each other loans to buy NFTs on the Ethereum blockchain.

What could possibly go wrong?

"No-Brainer"

This is how their scheme works: after putting down a down payment of up to 50 percent  — which, in some cases could run into the hundreds of thousands of dollars worth of crypto — borrowers would be matched with a lender who can meet the other half.

The NFT would then be placed in an escrow crypto wallet until the borrower makes all their loan payments on time.

"Buying NFTs is one of the core things Web3 consumers want to do right now," Ryan Berkun, the CEO and Founder of Teller, told Decrypt. "Buy now, pay later is a no-brainer."

In one sense, he's right. Introducing the concept of layaway — which is a well-known way for predatory companies to extract interest out of cash-poor consumers — into the NFT space isn't exactly surprising, given the amount of exploitative schemes and NFT scams already out there right now.

That's not to mention the many ways such a lending scheme could turn into opportunities of abuse, as Decrypt points out.

Absolutely Not

The concept of paying interest on something you can't afford and never get to own is one thing — but the idea that you could be forced to pay interest on a loan for a digital image file that is very likely to plummet in value, is arguably ludicrous.

READ MORE: Buy a Bored Ape Now and Pay Later With New Service for Ethereum NFTs [Decrypt]

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