Brock Pierce, former child actor, and cryptocurrency kingpin; one of the wealthiest people in the crypto space, has purchased a Dutch property worth USD 1.2 million in Bitcoin.
The American Bitcoin entrepreneur known for his work in the cryptocurrency industry has acquired his Amsterdam home, which was formerly a chapel, through Swiss startup Nexo which offers instant crypto credit.
Reportedly Pierce used roughly USD 3 million in collateral to secure a loan to fund the acquisition according to Antoni Trenchev, co-founder and managing partner at Nexo, who commented “He backed the entire loan for the house with Bitcoin. This was our first-ever crypto-backed mortgage.”
Trenchev pointed out that like many other crypto enthusiasts, Pierce wants to hold on to his Bitcoin, choosing a loan rather than paying with cash. However, the collateral cannot be accessed by Pierce or Nexo:
“So we take Bitcoin and other digital currencies as collateral using a third-party qualified custodian to store it and give them fiat cash for it. But neither the client nor us have access to the coins,” explained Trenchev.
The reason Pierce was asked to front a collateral deposit of USD 3 million for a much cheaper property was due to Nexo’s lending policy which requires clients to double the required funds as a guarantee, due to volatile nature of the current crypto market.
Pierce has been keeping a low profile recently. His most recent observations about cryptocurrency last month suggested that decentralized applications (Dapps) could be the major industry movers and shakers of 2019 along with the advance of security token offerings (STOs).
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