US Home to Be Sold in Novel Non-Fungible Token Deal

Propy, a California-based real estate technology company, will mint the property rights into a digital token.

By Associated Press | Updated: 7 February 2022 11:39 IST

Photo Credit: Unsplash/ Pawel Czerwinski

Non-fungible tokens use a version of the encryption technology employed to secure cryptocurrencies

Highlights

NFTs provide digital creations a kind of certificate of authenticity
Minting property rights into an NFT would allow owners to sell a home
There could also be challenges given the volatility of cryptocurrency

A home along Florida's Gulf Coast will be auctioned off in the upcoming week as a non-fungible token in what is believed to be among the first such transactions in the US.

Non-fungible tokens — or NFTs — use a version of the encryption technology employed to secure cryptocurrencies to create one-of-a-kind digital objects. The technology provides digital creations a kind of certificate of authenticity, allowing ownership of something that could otherwise be replicated endlessly.

In the case of the four-bedroom home in Gulfport, Florida, a California-based real estate technology company, Propy, will mint the property rights into a digital token and host an online auction, with bids starting at $650,000 (roughly Rs. 4.8 crore).

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Minting property rights into an NFT would allow owners to sell a home as quickly as a Venmo transaction, Leslie Alessandra, the home's current owner, told the Tampa Bay Times.

Christopher Vasilakis, a local real estate and virtual-reality expert, described such a transaction as “essentially just selling a company and a company owns that house."

There could also be challenges given the volatility of cryptocurrency, and it's not yet clear if the value of a house tied to an NFT would be affected by the crypto market, Vasilakis said.

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Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

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