Property Backed By NFT Sells for First Time in U.S.
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Property Backed By NFT Sells for First Time in U.S.

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Created 9mo ago, last updated 9mo ago

Propy — the blockchain-focused company behind the transaction — described the purchase as "historic" for the real estate world.

Property Backed By NFT Sells for First Time in U.S.

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A property backed by a non-fungible token has been sold for the first time in the U.S.

More than 7,000 people were interested in bidding on the five-bedroom house in Florida, but only two bids were made above the asking price of $650,000. It eventually sold for 210 ETH at auction — and a slide in the value of cryptocurrencies over the weekend means it's now worth $602,000 at the time of writing.

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."

Another property is set to go under the hammer in Tampa, Florida, and is projected to be worth between $200,000 and $300,000.

It has been something of a slow start for Propy — which had only sold one other NFT-backed property before now.

An apartment in Ukraine's capital Kyiv that was owned by Michael Arrington attracted 43 bids and sold for 36 ETH back in June 2021. This crypto was worth $93,429.72 at the time of the transaction, but is worth $104,148 now.
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