The MonkeyFirm introduces ‘Token Backed NFTs’ to address issues with digital asset trades

The MonkeyFirm (rebranded from MemeFarm) has launched a ‘Token Backed NFT’ wrapping platform. The new solution aims to simplify peer-to-peer crypto asset trading and creates a new way for creators of virtual items to commercialize their digital assets.Source: The MonkeyFirm

Peer-to-peer or OTC (Over the Counter) trading is an integral part of the crypto trading ecosystem. However, peer-to-peer trading, especially in the illiquid or low-cap alt-coin market, has its complexities. To complete a transaction, buyers and sellers need to find a counterparty to trade with, build trust and negotiate terms, find a trustworthy escrow agent, and coordinate across multiple time zones.

An OTC Solution

The MonkeyFirm has created a Token Backed NFT platform to address these issues. The firm aims to simplify peer-to-peer trading by creating a means to ‘wrap tokens’ in the form of an NFT, make them for sale at a specified price, and have the entire transaction handled through the use of smart contracts.

Mark Berisha, CEO of The MonkeyFirm, says that the simplest ideas in crypto are often the biggest. The advent of the ERC-20 token format or the AMM (Automated market-maker) model in DeFi were simple ideas that transformed the industry. Token-Backed-NFTs are simple, scalable and they solve a real market problem.

“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 Berisha. “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.”Source: The MonkeyFirm Token Backed NFT interface

The MonkeyFirm says that the funds of the sellers will never be withheld and the tokens can be redeemed at any time with The MonkeyFirm simply providing the solution for peer-to-peer exchange.

Token Wrapping

Wrapping a token refers to the exchange of one set of standards for token interaction, with another set of standards. Most NFTs are defined using the ERC-721 token standard, which maintains each token as a unique id and defines how to exchange them individually. The ERC-20 standard is used for creating and issuing smart contracts on the Ethereum blockchain. Wrapping allows NFTs to be stored in a wallet and exchangeable in multiples. It also allows for base liquidity to be established in exchange for other tokens.

Creators seeking a peer-to-peer trade for the sale of their tokens can visit mfrm.io to create a Token Backed NFT sale.

The MonkeyFirm CEO Mark Berisha was a recent guest on The Crypto Conversation podcast where he discussed the NFT solution.