Cryptocurrency is an emerging aspect of the capital markets amid increased adoption of the asset class. Amid the issues around crazy valuation and heightened volatility, their popularity continues to grow thanks to their increasing use cases. In real estate, metaverse cryptocurrencies thanks to their ability to host multiple online activities.
Understanding real estate tokenization
Tokenization of the real estate sector is the latest trend sweeping the burgeoning cryptocurrency sector. The spree has made it easy for developers and owners to raise capital more efficiently. In return, it is according to the would-be investor’s access to opportunities in the sector while also enhancing transparency and liquidity.
Blockchain technology is the underlying technology powering a good number of platforms that are enhancing the digitization of the real estate sector. As it stands, a number of platforms have cropped up that are making it easy for people to access vacation and rental houses for purchase, as well as dream homes and parking spots.
Conversely, technology has emerged as a unique and effective way for buyers, sellers, and investors to interact and transact business. The technology stands out partly because it enhances transparency between parties involved in real estate transactions. In addition, it’s proved to be highly effective in expediting the contract process while also reducing costs.
Below are some of the top tokens having a significant impact in the real estate sector.
Pro is the coin that powers the Propy ecosystem. It is also the largest cryptocurrency by market value, with operations in the properties industry. Propy, on the other hand, has carved a niche for itself as a global real estate transaction system.
The blockchain-powered Propy network seeks to enhance real estate purchases by offering an automated land registration and transfer system. The company behind the network is supported by Silicon Valley leaders and the National Association of Realtors.
Propy receives a small percentage of the final purchase price whenever a property is purchased over the network. Additionally, Pro acts as a medium of exchange through which transaction fees are settled on the network. The coin’s market cap of about $102M has grown thanks to Propy growing popularity in automating real estate sales processes.
Elysia is another attractive distributed project with interests in the real estate sector. It operates as a decentralized autonomous organization focused on providing technology and incentives for the transformation of real-world assets.
Powered by the EL token, the DAO has launched an investment service that allows people to invest as little as $92 a month on property parcels of their choice. It also offers a transparent way of managing returns.
The service is the first of its kind compliant with the Capital Markets Act in South Korea.
For any investor looking to gain some exposure in the international real estate sector, Contracoin offers exciting opportunities. It operates a global real estate blockchain power platform that real estate agents, brokers, and property developers can use to gain exposure to property portfolios on the international scene.
The blockchain-powered project came into being with the sole aim of making property ownership easily available for the masses. CTCN is the native token that powers the network. It acts as a medium for settling fees as well as a way of purchasing property within the network.
By staking sufficient CTCN token, one can search for properties within the Contracoin network for investment purposes.
LABS Group (LABS)
One of the biggest challenges for would-be investors eyeing opportunities in the real estate sector is the amount of starting capital required. LABS Group is looking to change all this by making real estate available to all investors.
The end-to-end blockchain-powered ecosystem offers fractionalized real estate investments. In this case, investors can invest in real estate products all over the world via fractional shares.
By fractionalizing investments, the project has eliminated the high minimum requirement barrier, making it easy for investors to access properties that were initially only offered to qualified institutional buyers and accredited investors.
LABS is the utility token that powers the LABS ecosystem helping drive utility and rewards through crowdfunding.
Linked to the Breeze de Mar family, Breezecoin is a cryptocurrency project linked to a corporal asset such as real estate assets. The project seeks to combine blockchain-based cryptocurrency technology with property investments.
As is the case with the LABS Group project, Breezecoin seeks to lift all the high barriers that have made it impossible for retail investors to gain exposure in the real estate sector. It plans to allow everyone to enjoy returns on property investments by lowering the minimum order size. It also allows investors to gain exposure to properties in other countries.
As it stands, BRZE is the utility token that allows people to pay for Breeze de Mar hotel and resort projects. In addition, there are plans to enable more points of acceptance for the BRZE coin, such as using it as a medium of exchange in the tourism industry.
While the global real estate sector is valued at over $220 trillion, only a few cliques of investors have enjoyed the full benefit of the burgeoning asset class. Given the high capital requirements in place, access to the most exciting projects is often beyond the reach of small retail investors.
However, with the integration of blockchain technology in the industry, things are starting to look up. New projects powered by ledger technology have cropped up, lowering the barriers of entry required to gain exposure to exciting real estate projects.
Tokenization has also enhanced liquidity and transparency in the traditionally opaque industry. The digitization aspect has made it possible to transact assets with the smallest amount of capital in real-time. Additionally, the technology has accorded investors and owners the freedom to raise and invest capital in the sector.