--- title: "Horrifying Loan Scheme Allows People to Buy NFTs in Installments" description: "This cryptocurrency company is literally applying the logic of layaway to non-fungible tokens now, because, apparently, the crypto community can sink lower." date: "2022-07-08" modified: "2022-07-08" authors: - name: "Noor Al-Sibai" job_title: "Senior Staff Writer" link: "https://futurism.com/authors/nooralsibai" url: "https://futurism.com/the-byte/nft-loan-scheme-buy-installments" categories: - "Blockchain" - "Future Society" - "NFTs" tags: - "cryptocurrencies" - "nfts" - "the digest" --- # Horrifying Loan Scheme Allows People to Buy NFTs in Installments ![One cryptocurrency company is literally applying the logic of layaway to non-fungible tokens now, because apparently, the crypto community can sink lower. ]() *\Image: OpenSea/Futurism\* ## 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]() \[*Decrypt*\] **More on NFT scams:** *[NFT Marketplace Admits That 80 Percent of Its NFTs Are Spam, Scams, and Fraud]()* ## Author At Futurism, I've often been drawn to unpacking the narratives that underlie technological, scientific and medical progress, with a special interest in areas of conflict and ambiguity that end up setting agendas and steering the fates of both elites and the hoi polloi. I'm a committed generalist, but I often find myself returning to work involving NASA and the private space sector, the effects of AI on media and society, and the mechanics of the pharmaceutical industry, with a specific focus on the spread of GLP-1 drugs like Ozempic and Wegovy. Prior to Futurism, I worked for publications ranging from Media Matters and Truthdig to Raw Story and Bustle. I'm also the author of "Myspace Scene Queens," a 2024 title in Instar Books' acclaimed "Remember the Internet" series. My work at Futurism has been cited by outlets including the New Yorker, Slate, Nieman Lab, the Verge, the MIT Technology Review, the Sunday Times, and the Daily Beast. I grew up in North Carolina, attended the University of North Carolina at Asheville, and now live in Brooklyn, New York. In my free time, I'm an avid reader and music fan; you can probably find me at a local poetry reading, concert, underground rave, or DJ set. I'm the proud parent of an ineffable orange cat named Mee-Mow. ### Author social links [Bluesky]()