Manhattan Property Tokenized with Blockchain
A wise man once said that they are only two things in this world that are a 100% secure investment. The first is art from a classic artist, and the second is property in Manhattan. Those are the only two things in the world that will never devalue.
Based in this unproven theory one might assume that there is always someone looking to buy property in Manhattan. You can see it in the huge number of galleries located in expensive streets all over the world, and in all the construction and remodeling constantly being done in Manhattan.
It came as no surprise that investors in cryptocurrency wanted to combine their passion for financial technologies and the real estate market in Manhattan. I expect cryptocurrencies to continue merging with other important sectors in years to come.
For the first time since the cryptocurrency craze started, a real estate property was tokenized using Blockchain technology. This isn’t just some startup project looking to test out the waters, this is a $30 Million home run to investors in the cryptocurrency that is bound to leave an impression on the real estate market and invite some more hopefuls.
The tokenization of the Manhattan property comes in a time where the value of some cryptocurrencies have gone down. To put it differently, cryptocurrencies needed some good news and they got it.
Let me begin by explaining what just happened in Manhattan and how it will possibly change both the real estate and the cryptocurrency game. A luxury Manhattan condominiums got a new home on the worldwide Ethereum Blockchain.
This is a major development considering the property is being valued at $30 million dollars. The seller took advantage of the practicality of tokenization to not rely on big banks and other financial institutions.
The property being tokenized is 1.700 square feet and is located in the trendy Manhattan neighborhood of East Village. Condominiums in the are are going for exaggerated prices and there is usually a long process behind the purchase of this, but not with cryptocurrencies.
Tokenization could be the new way that real estate gets financing as you avoid the hassle of having to ask banks for money and be in debt. There are still some things that have to be set in stone regarding how authorities see tokens, but everything seems to going completely fine with the first Manhattan property tokenized with Blockchain.
A digital firm dedicated to managing digital assets, Propellr, was behind the purchase and they made it clear that this will not be the last time they do this. They joined forces with tokenization experts Fluidity to make this happen.
Fluidity has long been in the cryptocurrency game and is in charge of making everything about the purchase legal and in accordance with federal authorities. The purchase of the property is a statement to the ultra conservative New York builders that the way to finance a construction is going to change.
I don’t expect the New York real estate market to gto without a fight on this one. They are backed by huge trusts and lawmakers, so there is the risk that projects like this may fall because of third party interference.
Notwithstanding the federal government of the United States has not been supportive in helping tokenization and are well behind in dealing with these matters if you compare them with the rest of the world.
Blockchain technology has been making a big impression around the world breaking the traditional rules involving securities and standard frameworks using its transparency as its main selling point. This property transaction is another example of the disruptive power of blockchain and cryptocurrency.
The real estate market in New York has been going strong for the last decade but it has been for the most part an ultra expensive investment reserved only for a select few. By introducing tokenization you diversify the market and introduce other competitors to an otherwise private sector.
As I said in the beginning of this article, classical art and Manhattan real estate are the only two things that are considered a 100% secure investment. Well, real estate has not been the only thing tokenized.
An Andy Warhol painting recently was auctioned for a staggering $5.6 million dollars using the Ethereum blockchain. Blockchain is here to stay and what better way to be adopted by the mainstream than by revolutionizing both the real estate and classical art market, the only two secure investments.
I hope you’ve found this article on real estate and blockchain to be helpful. For more information, or for assistance in starting a cryptocurrency exchange, please contact us HERE. I’ve also included some really great articles I’m pretty sure you will love!
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Forget Bitcoin – Now You Can Invest in the Future of the Internet of Things (IoT)
6 Things You Need to Know About the Current Global Luxury Real-Estate Market
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