Propy — the blockchain-focused company behind the transaction — described the purchase as "historic" for the real estate world.
A property backed by a non-fungible token has been sold for the first time in the U.S.
Propy — the blockchain-focused company behind the transaction — described the purchase as "historic" for the real estate world.
The NFT grants the investor access to a U.S.-based entity that owns the property — and it can be borrowed against because of how it is a decentralized finance asset.
A picture of the property is also included in the NFT, alongside a mural made by a local artist.
The house was sold by Leslie Alessandra, an entrepreneur who co-founded a project called DeFi Unlimited. Propy's website says that she "actively invests in both real estate and cryptocurrency and believes in the benefits of blockchain technology for both industry efficiency and humanitarian causes."
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But Why?
There's plenty of cynicism surrounding NFTs — and one common question at this point is: what's the point in tokenizing a property? In response to this, Propy says:
"Trophy real estate owned by celebrities, or in prime location, or with unique digital art and architecture can be regarded as a collectible. The level of pride of ownership is very high, and the purchased price is almost irrespective of the trading potential of the property, just like with other collectibles."
There also appears to be plenty of demand for Propy's services — with the company's CEO, Natalia Karayaneva, telling CoinDesk it has received "hundreds and hundreds of requests from sellers to sell their homes all over the U.S."
It has been something of a slow start for Propy — which had only sold one other NFT-backed property before now.