Flying Tulip says its NFT put options market has traded more than $5 million
Flying Tulip's NFT options market passes $5 million
Flying Tulip's marketplace for NFT-wrapped perpetual put options has processed more than $5 million in trades, according to founder Andre Cronje, who posted the figure on October 5.
The NFTs traded on that marketplace bundle FT tokens together with a right to redeem the money that backs the position. They are known as ftPUTs. A perpetual put option is the right to keep selling an asset at a fixed price no matter how low the market goes, in order to protect against a fall in value.
The original buyers of FT received these positions when the FT token started trading in February, as The Defiant reported at the time.
The numbers behind the claim
- More than $5 million in total trades, a figure stated by Andre Cronje on October 5.
- Position P7571 sold on October 5 for 149,000 USDT before fees, with 94,229.43 USDT of backing capital behind it.
- The linked Ethereum transaction shows the NFT changing hands and the buyer paying 149,447 USDT, which includes the taker fee.
- FT began trading in February, when original token-sale buyers were allocated ftPUTs.
What an ftPUT holder actually owns
According to Flying Tulip's own marketplace explanation, the NFT is an ERC-721 token, the standard format used for a one-of-a-kind digital collectible. It records the remaining FT and the collateral inside a position.
Its holder has three options. The position can stay open. Some or all of the backing money can be redeemed. Or the FT can be withdrawn and traded on its own.
Redeeming burns the matching FT held inside the position. Withdrawing the FT permanently cancels the redemption right for that part of it.
Buying FT on a spot market is not the same thing. A spot purchase does not come with a perpetual put attached to it.
Redemption returns the original asset, not a dollar promise
The project is clear that redemption gives back the original asset and the original amount. It does not guarantee a fixed dollar value, and it does not return whatever a later buyer paid for the NFT on the secondary market.
Flying Tulip's capital-allocation documentation states that the redemption right has no expiration date, and that contributed assets are put into onchain yield strategies while a position stays open. Yield strategies of this kind are programs run using smart contracts, which are code that holds and moves funds automatically.
What the marketplace checks before a trade settles
The marketplace verifies that a position's collateral and remaining balances have not changed before a purchase completes. The project says this blocks a seller from pulling assets out after a buyer has already priced the position. It does not stop a buyer from paying more than the position is worth.
The same documentation warns of two other risks. When many people redeem at the same time, settlement can slow down. And the yield strategies holding the contributed assets carry smart-contract risk and validator risk, which means software faults or faulty operators can cause losses.
What is confirmed and what rests on the founder's word
Confirmed by the project's own records: the trade of position P7571 on October 5, its listed price of 149,000 USDT before fees, the 94,229.43 USDT of backing capital, and the matching Ethereum transaction showing a 149,447 USDT payment. Also confirmed from project documentation: the redemption rules, the lack of an expiration date, and the stated risks.
Reported but not independently verified: the total volume of more than $5 million. That figure comes from Cronje's own post, and no outside audit of trading activity appears in the supplied material.
Cronje's own view on why the design exists: "There are many financial and non-financial instruments that only make sense as NFTs."
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.